Hellen Mbela Ouko v Kenya Post Office Savings Bank [2020] KEELRC 701 (KLR)
The bottom line
#Kenya's Employment Court upheld a bank manager's dismissal for failing to check transactions, awarding only her unpaid dues and certificate of service.
What this practically means
#Executive summary
#Key legal issues
#Validity of the reason for termination
The Respondent proved a valid reason: the Claimant failed to exercise due diligence in approving Pata cash activations and allowed a sales executive without DMS access to stand in for the CRO
The show cause letter cited failure of due diligence and allowing a sales executive to perform CRO duties. The Claimant admitted appointing the sales executive and failing to verify details in the application forms, presuming the cashier had done her job. Clause 6.1.1.4 of the HR Manual treats failure to perform work carefully as misconduct, and section 44(4) of the Employment Act makes wilful neglect a justifiable ground for summary dismissal.
Fairness of the procedure adopted
Procedure under section 41 of the Employment Act was complied with, though the appeal was not handled in accordance with the respondent's manual
The Claimant was issued a show cause letter, responded to it, was interdicted and subjected to a disciplinary hearing before dismissal, satisfying section 41. However, the court found the internal appeal was not concluded in accordance with the respondent's manual, though this did not render the dismissal unfair in the circumstances.
Entitlement to reliefs
Only unpaid earned dues (10 days' salary, leave travel allowance, untaken leave) and a certificate of service were awarded; all other heads failed
Because the dismissal was lawful and fair, declaratory relief, reinstatement, notice pay, compensation and general damages failed. Where the Respondent adduced no evidence to controvert unpaid earned dues, those were awarded as prayed. The certificate of service was ordered under section 51(2) of the Employment Act.
Legal principles established
#- Termination is unfair under section 45(2) of the Employment Act unless the employer proves both a valid reason and a fair procedure
- Wilful neglect or careless and improper performance of one's contractual duties is a justifiable ground for summary dismissal under section 44(4) of the Employment Act
- An employee in overall authority at a branch must verify details before approving transactions even in the absence of guidelines
- Reinstatement is only available within three years of termination
Court orders
#- 1.Judgment entered for the claimant against the respondent in the sum of Kshs.239,080.85
- 2.Leave travel allowance awarded as prayed in the sum of Kshs.14,230
- 3.Salary for the 10 days worked in February 2014 awarded in the sum of Kshs.56,210.95
- 4.26 untaken annual leave days awarded in the sum of Kshs.168,639.90
- 5.Respondent directed to issue the Claimant with a certificate of service in line with Section 51(2) of the Employment Act
- 6.Respondent to pay the claimant's costs
- 7.Interest to accrue at court rates from the date of judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (Articles 159(2)(d) and 48 of the Constitution referenced on mode of delivery)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Hellen Mbela Ouko v Kenya Post Office Savings Bank [2020] KEELRC 701 (KLR)", Case Analysis (2020). Cause No 2093 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/701/eng@2020-07-17
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.