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ELRCPartially AllowedCause 603 (N) of 2009 (as per Cause 603 (N) of 2009 reference in cited authority); Statement of Claim filed 29th August 2014· [2019] KEELRC 749 (KLR)

Alphonce Shihalo Ngaira v Kenya Stationers Limited (Kensta Group) [2019] KEELRC 749 (KLR)

Employment and Labour Relations Court
27 September 2019
1,987 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~8 min to read original · ~4 min brief

The bottom line

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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

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Executive summary

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The Claimant, employed by the Respondent from 1993 to 2010, was terminated on 11th October 2010 on the ground that zinc scrap blocks belonging to Insteel Kenya Limited, the Respondent's lessor, were found loaded onto a lorry under his care without the Respondent's knowledge. He was charged in Makadara CM Criminal Case No. 3743 of 2010 and discharged, then sought reinstatement and terminal dues. By consent, the claim was heard by pleadings, documents and written submissions. The court framed two issues: whether the termination was unfair, and whether the Claimant was entitled to the reliefs sought. On the first issue, the court found the reason for termination justifiable under section 44(g) of the Employment Act, holding that the lost blocks occasioned distress to the Respondent and risked the lessor-lessee relationship. Relying on the Court of Appeal decision in Teachers Service Commission v Joseph Wambugu Nderitu, the court held that criminal and disciplinary proceedings are distinct and the employer was not bound by the Claimant's discharge. However, the Respondent failed to prove a disciplinary hearing - no minutes were produced and the termination letter referenced only the suspension letter - so the court found the termination procedurally unfair under section 41. On reliefs, the court held parties bound by pleadings and ignored prayers raised only in submissions. It found service pay and October 2010 salary already paid, dismissed the house allowance claim since a house allowance was already paid per the June 2010 payslip, and dismissed the general damages claim for want of proof of mental torture. The court awarded one month's salary in lieu of notice of Kshs.25,285 under section 36, with costs of the suit to the Claimant.

Key legal issues

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01

Whether the reason for termination was valid

Holding

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

Reasoning

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.

p. 2
02

Effect of the Claimant's discharge in the criminal case on the employment termination

Holding

The employer is not bound by the outcome of the criminal case; disciplinary and criminal proceedings are distinct

Reasoning

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.

p. 3
03

Whether fair procedure under section 41 of the Employment Act was followed

Holding

No fair procedure was followed; the termination was procedurally unfair

Reasoning

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.

p. 3
04

Whether the Claimant was entitled to the terminal dues and damages claimed

Holding

Partially - only one month's salary in lieu of notice awarded; service pay, October salary and house allowance already paid; general damages not proved

Reasoning

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.

p. 3

Legal principles established

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  • 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

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  1. 1.Payment of one month's salary in lieu of notice of Kshs.25,285/= to the Claimant
  2. 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

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Practical implications

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Frequently asked questions

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Cite this brief

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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.