Alphonce Shihalo Ngaira v Kenya Stationers Limited (Kensta Group) [2019] KEELRC 749 (KLR)
The bottom line
#A Kenyan court confirmed an employer can fire an employee even after criminal charges are dropped, but skipped the mandatory disciplinary hearing and paid the price.
What this practically means
#Executive summary
#Key legal issues
#Whether the reason for termination was valid
There was a justifiable reason for the termination - loss of zinc blocks belonging to the lessor Insteel Kenya Limited occasioned distress and risk to the lessor-lessee relationship
The Claimant, the lorry driver, and his colleague had sole custody of the lorry on which blocks belonging to Insteel were found loaded. Section 44(g) of the Employment Act permits summary dismissal where an employee commits or is reasonably suspected of committing a criminal offence against or to the substantial detriment of the employer's property. The loss compromised the lessor-lessee relationship and justified termination on the reason of negligence.
Effect of the Claimant's discharge in the criminal case on the employment termination
The employer is not bound by the outcome of the criminal case; disciplinary and criminal proceedings are distinct
The court relied on the Court of Appeal decision in Teachers Service Commission v Joseph Wambugu Nderitu to hold that a successful outcome of a criminal process against an employee has no primacy over an internal disciplinary process arising from the same circumstances. The Claimant's acquittal therefore did not, of itself, entitle him to reinstatement or render the termination unfair.
Whether fair procedure under section 41 of the Employment Act was followed
No fair procedure was followed; the termination was procedurally unfair
Although the Respondent claimed a disciplinary hearing was held, it did not produce the minutes of the disciplinary proceedings, and the termination letter dated 11th October 2010 referred only to the suspension letter of 6th October 2010. On the evidence on record, the Claimant was not given an opportunity to be heard prior to termination as required by section 41.
Whether the Claimant was entitled to the terminal dues and damages claimed
Partially - only one month's salary in lieu of notice awarded; service pay, October salary and house allowance already paid; general damages not proved
The Respondent's letter dated 12th October 2010 and the October 2010 payslip showed payment of leave pay, service pay and salary for days worked. The June 2010 payslip showed a house allowance of Kshs.3,500 was already paid. No evidence of mental torture was adduced. The court also declined to entertain prayers appearing only in submissions, holding parties bound by pleadings.
Legal principles established
#- Criminal proceedings are distinct from disciplinary proceedings and an employer is not bound by the outcome of a criminal case.
- Where no disciplinary hearing is proved, termination is procedurally unfair contrary to section 41 of the Employment Act.
- An employee terminated without fair procedure is entitled to payment in lieu of notice under section 36 of the Employment Act.
- An employee may be summarily dismissed where, on reasonable and sufficient grounds, he is suspected of committing a criminal offence against or to the substantial detriment of his employer's property.
Court orders
#- 1.Payment of one month's salary in lieu of notice of Kshs.25,285/= to the Claimant
- 2.The respondent shall pay claimant's costs for the suit
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (sections 36, 41, 43, 44, 45, 47(5) applied); specific constitutional/statutory founding provision not stated in the judgment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Alphonce Shihalo Ngaira v Kenya Stationers Limited (Kensta Group) [2019] KEELRC 749 (KLR)", Case Analysis (2019). Cause 603 (N) of 2009 (as per Cause 603 (N) of 2009 reference in cited authority); Statement of Claim filed 29th August 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/749/eng@2019-09-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.