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ELRCDismissedCase No 44 of 2016· [2019] KEELRC 2211 (KLR)

Kenya Plantation & Agricultural Workers Union v Delmonte (K) Limited [2019] KEELRC 2211 (KLR)

Employment and Labour Relations Court
21 February 2019
2,246 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court upheld Del Monte's dismissal of two workers over a multi-million shilling theft, ruling the employer followed fair procedure and had valid grounds.

What this practically means

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Executive summary

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The claimant union, on behalf of two grievants, Eric Wanyama (store/record clerk) and Samuel Munene (forklift operator), sued Delmonte (K) Ltd for unfair and summary dismissal following the theft of copper wire worth Kshs. 8.6 million and electrical cable worth Kshs. 235,000/- from the respondent's can plant in June 2014. Both grievants were issued show-cause notices, responded, underwent a disciplinary hearing on 20 August 2014 and were dismissed on 16 September 2014; their appeals were rejected. Conciliation before the Cabinet Secretary failed and a certificate issued on 30 March 2015, prompting the claim for reinstatement without loss of benefits or damages in the alternative. The respondent defended the dismissal as lawful gross misconduct under sections 44(4)(c) and (g) of the Employment Act. The court framed three issues: gross misconduct, fairness of termination, and entitlement to remedies. It found the 1st Grievant was the key custodian of the can plant and failed to diligently secure it, while the 2nd Grievant, the only forklift operator on site, gave contradictory accounts of his whereabouts; the copper wire could only be moved by forklift, supporting an inference of a joint scheme. Procedurally, the grievants received the section 41 safeguards, and the employer proved a valid and fair reason under sections 43 and 45(2). Relying on Judicial Service Commission v Gladys Boss Shollei and Michael Dowling, the court held the dishonesty struck at the heart of the employment relationship. The suit was dismissed with each party bearing its own costs.

Key legal issues

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01

Whether the Grievants engaged in gross misconduct justifying summary dismissal

Holding

Yes. The 1st Grievant was the custodian of keys to the can plant from which copper wire worth Kshs. 8.6 million and electrical cable worth Kshs. 235,000/- were stolen, and the 2nd Grievant was the only forklift operator on site; the copper wire could only be moved by forklift, supporting the conclusion of a joint scheme

Reasoning

Applying sections 44(4)(c) and (g) of the Employment Act, the court found the 1st Grievant failed to diligently secure storage areas as store clerk and key custodian, and the 2nd Grievant gave contradicting accounts of his whereabouts. Since the stolen wire could only be lifted by forklift and the 2nd Grievant was the sole operator on site, the employer had sufficient grounds to suspect both Grievants of a joint scheme to steal.

p. 2
02

Whether the termination was fair or unfair

Holding

The termination was fair in both procedure and reason

Reasoning

The court found the Grievants were issued show-cause notices, responded to them, and were taken through a disciplinary hearing where they appeared with a representative and tendered their defence, satisfying section 41. Under sections 43 and 45(2), the employer proved a valid and fair reason: both Grievants were on site at the time of the theft, had access to the can plant, and did not discount the case of dishonesty.

p. 3
03

Whether the Grievants are entitled to the remedies sought

Holding

No. Having upheld the dismissal as justified, the Grievants were disentitled to reinstatement or damages

Reasoning

Because the court found the employer justified in terminating employment on grounds of gross misconduct, the Grievants could not avail themselves of remedies for unfair termination. Reinstatement without loss of benefits and alternative damages were accordingly refused and the suit was dismissed, with each party bearing its own costs.

p. 3

Legal principles established

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  • Summary dismissal is justified where the employee by his conduct has fundamentally breached his obligations under the contract of service, including where on reasonable and sufficient grounds the employee is suspected of committing a criminal offence against the employer's property
  • Termination is unfair where the employer fails to prove a valid and fair reason and fair procedure, but an employer who conducts a disciplinary hearing with notice, response and representation satisfies the procedural safeguards
  • Dismissal for dishonesty is justified where the misconduct strikes at the heart of the employment relationship, assessed by a contextual examination of the circumstances

Court orders

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  1. 1.The suit is dismissed
  2. 2.Each party to bear their own costs of the claim

Authorities

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Legislation

  • Employment Act 2007Section 44(3)
  • Employment Act 2007Section 44(4)(c)
  • Employment Act 2007Section 44(4)(g)
  • Employment Act 2007Section 45(2)
  • Employment Act 2007Section 41(1)
  • Employment Act 2007Section 43

Cases cited (2)

  • Judicial Service Commission v Gladys Boss Shollei & Another
    [2014] eKLR
  • Michael Dowling v Workplace Safety and Insurance Board
    [2004] CAN LII 43692
Jurisdiction invoked
Original jurisdiction of the Employment and Labour Relations Court over employment disputes following failed conciliation before the Cabinet Secretary

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, "Kenya Plantation & Agricultural Workers Union v Delmonte (K) Limited [2019] KEELRC 2211 (KLR)", Case Analysis (2019). Case No 44 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2211/eng@2019-02-21

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