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ELRCPartially AllowedCause No. 383 of 2017 (consolidated with Cause No. 826 of 2017)· [2020] KEELRC 1441 (KLR)

Musa Ndima Said &another; v Milly Glassworks Limited [2020] KEELRC 1441 (KLR)

Employment and Labour Relations Court
12 March 2020
2,057 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court awarded one dismissed employee 12 months' salary because his employer skipped the required disciplinary hearing, but upheld his colleague's dismissal.

What this practically means

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Executive summary

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Two causes (Nos. 383 and 826 of 2017) were consolidated by consent and decided in one judgment by the Employment and Labour Relations Court at Mombasa. The 1st Claimant, Musa Ndima Said, an Assistant Operator employed in 2007, and the 2nd Claimant, Said Mohdhar Abdalla, a Transport Manager employed in 2003, were summarily dismissed in February 2017 over an incident in which vehicle service components were removed from the Respondent's stores under an irregularly processed gate pass. Each claimed pay in lieu of notice, severance pay or gratuity, and damages for unlawful dismissal. The Respondent maintained that both dismissals were lawful and fair. The court framed two issues: whether the dismissals were lawful and fair, and entitlement to remedies. The court found the 1st Claimant's dismissal wrongful and unfair: he was never subjected to the Section 41 disciplinary process, the Respondent called no witnesses, and the accusations were unproved under Section 43. He was awarded twelve months' salary in compensation (Kshs. 176,064) and one month's notice pay (Kshs. 14,672), totaling Kshs. 190,736, with interest at court rates. Conversely, the 2nd Claimant had admitted irregularly raising the gate pass and was given an opportunity to respond; applying the 'reasonable responses test' from Nampak Corrugated Wadeville v Khoza, the court upheld his dismissal. Claims for severance pay, gratuity, the 2nd Claimant's damages, and notice pay for the 2nd Claimant were dismissed. Both Claimants were awarded certificates of service, and the Respondent was ordered to pay the costs of the case.

Key legal issues

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01

Whether the 1st Claimant's summary dismissal was lawful and fair

Holding

The dismissal was wrongful and unfair; the charge was not proved and the Claimant was not subjected to the Section 41 disciplinary process.

Reasoning

The court found no evidence that the charge of failure to report was placed before the 1st Claimant for response. Apart from recording a statement, he was not involved in the investigations. The Respondent's failure to subject him to the Section 41 disciplinary process, coupled with its decision not to call any live testimony, meant the accusations were not proved as required under Section 43 of the Employment Act. He was therefore entitled to compensation and notice pay.

p. 4
02

Whether the 2nd Claimant's summary dismissal was lawful and fair

Holding

The dismissal was lawful; the Respondent had a valid reason and accorded him a hearing.

Reasoning

The 2nd Claimant admitted in writing to having irregularly raised gate pass No. 7934, passing it off as prepared by a former employee. He did not testify, so dishonesty could not be ruled out. Applying the 'reasonable responses test' endorsed by the Court of Appeal, the court found a reasonable employer could impose the sanction of summary dismissal, especially since the Respondent had called upon him to explain himself via a show cause memorandum before dismissal.

p. 4
03

Whether the Claimants were entitled to severance pay and gratuity

Holding

The claims failed; no basis was laid for them.

Reasoning

Neither Claimant established an entitlement to severance pay or gratuity. The 1st Claimant sought severance pay at 15 days' pay per year of service and the 2nd Claimant sought gratuity, but the court found that no basis was laid for these heads of claim, and they were accordingly dismissed, leaving only compensation and notice pay for the 1st Claimant.

p. 4

Legal principles established

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  • An employer must subject an employee to the disciplinary process set out under Section 41 of the Employment Act and prove the accusations under Section 43; failure to do so renders the dismissal wrongful and unfair.
  • Under the 'reasonable responses test', a court should not lightly interfere with an employer's sanction unless the employer acted unfairly in imposing it.

Court orders

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  1. 1.Judgment entered in favour of the 1st Claimant, Musa Ndima Said, in the sum of Kshs. 190,736, comprising 12 months' salary in compensation (Kshs. 176,064) and 1 month's salary in lieu of notice (Kshs. 14,672)
  2. 2.The said amount to attract interest at court rates from the date of judgment until payment in full
  3. 3.The Claimants to be issued with certificates of service
  4. 4.The Respondent to pay the costs of the case
  5. 5.The 2nd Claimant's claim for wrongful and unlawful dismissal dismissed
  6. 6.The claims for severance pay and gratuity dismissed

Authorities

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Legislation

  • Employment ActSection 44(4)(c) & (g)
  • Employment ActSection 44(4)(c) & (e)
  • Employment ActSection 41
  • Employment ActSection 43

Cases cited (2)

  • Cooperative Bank of Kenya Limited v Banking Insurance & Finance Union (k)
    [2017] eKLR
  • Nampak Corrugated Wadeville v Khoza
    (JA 14/98) [1998] ZALAC 24
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (Cause proceedings for wrongful and unfair dismissal)

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, "Musa Ndima Said &another; v Milly Glassworks Limited [2020] KEELRC 1441 (KLR)", Case Analysis (2020). Cause No. 383 of 2017 (consolidated with Cause No. 826 of 2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1441/eng@2020-03-12

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