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ELRCDismissedNot stated in judgment· [2021] KEELRC 1821 (KLR)

Julius Kirimo Mwandoro v KCB Bank Kenya Limited [2021] KEELRC 1821 (KLR)

Employment and Labour Relations Court
23 April 2021
3,777 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 KCB's dismissal of a long-serving employee because the bank proved one solid ground and followed fair procedure.

What this practically means

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Executive summary

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The claimant, employed by the respondent bank since April 1993 and last serving at the Kilifi Branch, sued claiming that his termination on 19.09.2018 was substantively and procedurally unfair, breach of the Employment Act, 2007, the Labour Relations Act, 2007 and the applicable CBA. He sought a declaration of unfair termination, reinstatement or alternatively 12 months' compensation of Kshs. 2,637,936.00, a certificate of service and costs. The respondent admitted the employment and service history but maintained the termination was substantively and procedurally lawful, founded on mistreatment of two customers and issuance of bouncing cheques contrary to an HR circular. The claimant testified; the respondent called its Manager, Employee Relations. The court found the parties were in a contract of service and that termination occurred by the letter of 19.09.2018. On procedure, the claimant was notified of the allegations, replied in writing, was heard at a disciplinary hearing with the right to co-employee representation, was terminated, appealed and lost; procedure under section 41 was thus complied with. On substance, the respondent failed to prove the alleged vernacular insult, following CMC Aviation, and the ATM complaint was explained by queues, authorization delay and the claimant's documented ill-health. However, the third ground - bouncing cheques and breach of HR circular GHRL 108/2017 - was established, the claimant having admitted the cheques and knowledge of the policy. Applying the reasonable responses test from Reuben Ikatwa, the court held the dismissal was within the range of reasonable employer responses given the prior warning letters. The claim was dismissed except for an order that the respondent issue a certificate of service within 14 days, with each party bearing own costs.

Key legal issues

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01

Procedural fairness of the termination

Holding

Termination was procedurally fair

Reasoning

The claimant was notified of the allegations by internal memos, replied in writing, was invited to a disciplinary hearing with a right to representation by a co-employee, was heard (hearing rescheduled on account of his sickness), was terminated, appealed and the appeal was declined. The court found full compliance with section 41 of the Employment Act, including notice, hearing and representation.

p. 2
02

Whether the respondent proved the grounds for termination

Holding

Two of three grounds failed; the third ground (bouncing cheques/breach of HR circular) was established

Reasoning

The respondent failed to specify or prove the vernacular words allegedly uttered to the head teacher, following CMC Aviation. The ATM complaint was explained by queues, supervisor delay and the claimant's ill-health. However, the claimant admitted issuing bouncing cheques and never denied knowledge of HR circular GHRL 108/2017, so that ground was established.

p. 3
03

Whether the dismissal was a reasonable response

Holding

Yes; the reasonable responses test applied and the respondent was entitled to dismiss on the established ground

Reasoning

Guided by Reuben Ikatwa, the court applied the reasonable responses test per Halsbury's Laws. Given the established third ground, the prior warning letters for poor performance and the claimant's record of service, a reasonable employer could have dismissed, and the court would not fault the respondent's decision.

p. 4
04

Belated filing of the statement of response

Holding

Objection failed; no affidavit of service filed and the response was allowed by consent

Reasoning

The response was filed outside 21 days, but the claimant filed no affidavit of service, and on 09.12.2020 the court, by consent, allowed the response, documents and witness statements on record and reviewed earlier orders. The court nonetheless considered the consent in ordering each party to bear own costs.

p. 4

Legal principles established

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  • The employer bears the burden under sections 43(1) and 47(5) of the Employment Act to prove the reasons for termination, and must specify alleged abusive or insulting words uttered by an employee
  • In adjudicating unreasonableness of an employer's conduct, the employment court applies the reasonable responses test and must not substitute its own views for those of the employer

Court orders

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  1. 1.The dismissal of the memorandum of claim filed on 15.07.2019
  2. 2.The respondent to deliver to the claimant the certificate of service within 14 days from the date of the judgment
  3. 3.Each party to bear own costs of the suit

Authorities

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Legislation

  • Employment Actsections 41, 43, 43(1), 47(5)
  • Labour Relations Act, 2007Not specified
  • Employment and Labour Relations Court (Procedure) Rules, 2016rule 13

Cases cited (3)

  • CMC Aviation Limited –Versus- Mohammed Noor
    [2015]eKLR
  • Reuben Ikatwa & 17 Others –Versus- Commanding Officer British Army Training Unit Kenya & Another
    [2017]eKLR
  • CFC Stanbic Bank Limited –Versus- Danson Mwashako Mwakuwona
    [2015]eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes under the Employment Act, 2007

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, "Julius Kirimo Mwandoro v KCB Bank Kenya Limited [2021] KEELRC 1821 (KLR)", Case Analysis (2021). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1821/eng@2021-04-23

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