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ELRCPartially AllowedNot stated in judgment· [2019] KEELRC 1785 (KLR)

Abram Kamau Kimani v Guaranty Trust Bank (K) Limited [2019] KEELRC 1785 (KLR)

Employment and Labour Relations Court
26 April 2019
2,735 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~11 min to read original · ~4 min brief

The bottom line

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Even with CCTV proof of theft, a Kenyan employer must still follow fair disciplinary procedure or the dismissal becomes unlawful.

What this practically means

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Executive summary

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The claimant, employed by the respondent bank on 7.12.2009 as a Graduate Trainee and later a Project Management Officer earning Kshs.70,000 monthly, was summarily dismissed on 24.8.2011 for alleged attempted theft of Kshs.1,000 from a client, Gamba Home Renovators, during a cheque cashing transaction of 6.8.2011. He sued challenging the dismissal, seeking a declaration that it was unlawful, twelve months' salary compensation, severance and leave entitlements. The respondent maintained the dismissal was for gross misconduct after a hearing. The court, through Onesmus N. Makau J, framed two issues: whether the dismissal was unfair and unlawful, and whether the reliefs should issue. On the evidence, including the CCTV clip played in court, the court found the respondent proved a valid and fair reason for dismissal on a balance of probability. However, on procedure, the claimant's unrebuted evidence established that he was not accorded a hearing in the presence of an employee of his choice, was not shown the investigation report or CCTV footage, and his initial written response was torn. The respondent's witness did not participate in the disciplinary process and could not rebut this. The dismissal was therefore unfair under sections 41 and 45 of the Employment Act. The court declared the dismissal unfair and unlawful, awarding one month's salary in lieu of notice (Kshs.70,000), three months' compensation (Kshs.210,000) and leave pay (Kshs.47,419), totalling Kshs.327,419 subject to statutory deductions, with costs and interest. The claim for annual salary damages failed for lack of legal or contractual basis.

Key legal issues

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01

Whether the respondent proved a valid and fair reason for the dismissal

Holding

Yes - the CCTV clip established attempted theft of Kshs.1,000 from the client

Reasoning

The court viewed the CCTV clip and was satisfied that the claimant pushed a Kshs.1,000 note that had been blown off the counting machine under the machine, intending to steal it from the client. The clip, produced unobjected with a certificate, discharged the employer's burden of proof on a balance of probability under sections 43 and 45 of the Employment Act.

p. 4
02

Whether the respondent followed a fair procedure before dismissing the claimant

Holding

No - the procedure under section 41 was not followed, rendering the dismissal unfair

Reasoning

The claimant's unrebuted evidence was that he was summoned without notice of a disciplinary agenda, denied the company of another employee of his choice, not shown the investigation report or CCTV footage, and his first written response was torn. The respondent's witness, who joined after the dismissal and did not participate in the hearing, could not rebut this. The employer bore the burden of proving procedural fairness and failed.

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What remedies flow from the unfair dismissal

Holding

One month's salary in lieu of notice, 3 months' salary compensation under section 49(1), and the claimed leave pay of Kshs.47,419

Reasoning

Having declared the dismissal unfair, the court exercised its discretion under section 49(1) of the Employment Act, awarding notice pay and 3 months' compensation. The quantum was reduced because the claimant served briefly and contributed to his dismissal through misconduct. Leave was computed at 23.5 outstanding days, but the court awarded only the Kshs.47,419 specifically prayed for. Broader damages were refused for lack of legal or contractual basis.

p. 4

Legal principles established

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  • Under section 45(2) of the Employment Act, the employer bears the burden of proving both a valid and fair reason and a fair procedure for termination
  • An employee dismissed for misconduct must be heard in the presence of another employee of his choice, with representations considered, as required by section 41 of the Employment Act

Court orders

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  1. 1.Declaration that the summary dismissal of the claimant was unfair and therefore unlawful
  2. 2.Judgment entered for the claimant against the respondent in the sum of Kshs.327,419 comprising notice pay of Kshs.70,000, compensation of Kshs.210,000 and leave pay of Kshs.47,419
  3. 3.The said sum to be paid subject to statutory deductions
  4. 4.Costs of the suit to the claimant plus interest at court rates from the date of judgment

Authorities

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Legislation

  • Employment Actsection 49(3)
  • Employment Actsection 49(1)(c)
  • Employment Actsection 49(3)(h),(j),(m)
  • Employment Actsection 45(2)
  • Employment Actsections 43 and 45
  • Employment Actsection 41
  • Employment Actsection 49(1)
  • Employment Actsection 28
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (sections 41, 43, 45 and 49 applied)

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, "Abram Kamau Kimani v Guaranty Trust Bank (K) Limited [2019] KEELRC 1785 (KLR)", Case Analysis (2019). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1785/eng@2019-04-26

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