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ELRCPartially AllowedCause No. 74 of 2017· [2018] KEELRC 2577 (KLR)

Jacob Juma Makokha v Radar Security (K) Limited [2018] KEELRC 2577 (KLR)

Employment and Labour Relations Court of Kenya
26 September 2018
2,856 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Even an employee caught stealing must be given a fair hearing before dismissal, so the Kenyan court awarded him notice and leave pay but no compensation.

What this practically means

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Executive summary

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The claimant, employed as a security guard by the respondent, alleged that his employment was orally terminated on allegations of theft of scrap metal without notice, hearing or valid reasons, contrary to sections 41(1), 44(4), 45(2) and 43 of the Employment Act, 2007. He sought notice pay, compensation, house allowances, service pay, overtime and leave pay. The respondent asserted that the claimant was caught stealing scrap metal at the Raiply premises he guarded, escaped before disciplinary action could be taken, and thus there was no termination. The court found the claimant discharged his burden under section 47(5) by laying the basis for his claim, shifting the burden to the employer. The evidence of three respondent witnesses that the claimant was caught with scrap metal was accepted as true; the claimant's misconduct was gross. However, the respondent, which had the claimant's contract details, failed to recall him for disciplinary action, leaving him at large, and so failed the section 41 threshold, making the termination unprocedural. Compensation under section 49 was refused because the award would reward gross misconduct and destroy the trust and confidence essential to a security guard's role. House allowances were refused as the claimant was paid the minimum wage, and service pay was refused for want of proof of any benefit outside section 35. The claimant was awarded notice pay and leave pay; overtime was to be computed from the respondent's work records within 30 days upon the claimant's clearance. Each party was to bear its own costs.

Key legal issues

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01

Burden of proof in unfair termination

Holding

The claimant discharged his burden under section 47(5) by laying the basis for his claim, shifting the burden to the employer to justify the grounds for termination

Reasoning

The claimant denied the reasons given for his dismissal and laid the basis for his claim, discharging his obligation under section 47(5). This brought into play sections 43(1) and 47(5), placing the burden on the employer to prove the alleged reasons and justify the grounds for termination.

p. 3
02

Procedural fairness despite gross misconduct

Holding

Although the claimant was caught stealing scrap metal, the respondent failed to follow section 41 because it left the claimant at large without recalling him for disciplinary action

Reasoning

The respondent's witnesses' evidence that the claimant was caught with scrap metal was unchallenged and taken as true. However, where the respondent had the claimant's written contract with his address, it was required to recall him for disciplinary action. Leaving him at large failed to meet the section 41 threshold, rendering termination unprocedural.

p. 3
03

No compensation for gross misconduct

Holding

No compensation awarded because the theft constituted gross misconduct destroying trust and confidence

Reasoning

A security guard entrusted with guarding property who engages in acts contrary to that duty loses the trust and confidence of the client and employer. Section 45(5)(b) requires the employee's conduct up to termination to be considered; awarding compensation would reward gross misconduct and offend the interests of justice.

p. 3
04

Overtime claim

Holding

The claimant's computation was erroneous and contradictory, but the respondent failed to produce work records; overtime to be computed from the respondent's records upon the claimant's clearance

Reasoning

The claimant testified he worked 12 hours a day with one rest day per week, making the 7-day computation erroneous and contradictory. The respondent did not submit work records, which would have allowed a proper assessment. The court ordered computation based on the records held by the respondent within 30 days and upon clearance.

p. 4

Legal principles established

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  • The burden of proving that an unfair termination occurred rests on the employee, while the burden of justifying the grounds for termination rests on the employer
  • An employer who suspects an employee of theft may summarily dismiss under section 44(4), but internal disciplinary proceedings differ from criminal trials and require only that the employee be reasonably given a hearing
  • Failure to recall an employee for disciplinary action, leaving him at large, defeats the employer's compliance with section 41 of the Employment Act
  • In awarding remedies under section 49, the employee's conduct up to the date of termination is material

Court orders

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  1. 1.Notice pay awarded at Kshs. 16,277.00
  2. 2.Leave pay awarded at Kshs. 4,667.00
  3. 3.Overtime payments to be computed based on the work records held by the respondent and paid within 30 days from the date of judgment, upon the claimant undertaking clearance with the respondent
  4. 4.Each party shall pay own costs

Authorities

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Legislation

  • Employment Act, 2007section 41(1), 41(2)
  • Employment Act, 2007section 43(1), 43(2), 43(3)
  • Employment Act, 2007section 44(4)
  • Employment Act, 2007section 45(2), 45(5)(b)
  • Employment Act, 2007section 47(5)
  • Employment Act, 2007section 49
  • Employment Act, 2007section 35
  • Employment Act, 2007section 28

Cases cited (6)

  • Walter Ogal Anuro versus Teachers Service Commission
    [2013] eKLR
  • Alphonse Machanga Mwachaya versus Operation 680 Limited
    [2013] eKLR
  • Central News Agency (Pty) versus CCAWUSA & Another
    [1991] 12 ILJ (LAC)
  • Nzoia Sugar Company Ltd versus Collinsus Faugututi
    Civil Appeal No. 7 of 1987
  • George Musamali versus G4S Security Services Kenya Ltd
    [2016] eKLR
  • Naqvi Syed Qmar versus Paramount Bank Limited & another
    [2015] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Jacob Juma Makokha v Radar Security (K) Limited [2018] KEELRC 2577 (KLR)", Case Analysis (2018). Cause No. 74 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/2577/eng@2018-09-26

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.