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ELRCPartially AllowedCause (not stated in judgment; filed 7 March 2018)· [2022] KEELRC 193 (KLR)

Kenya National Private Security Workers Union v Wells Fargo Ltd [2022] KEELRC 193 (KLR)

Employment and Labour Relations Court
11 April 2022
1,101 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~4 min to read original · ~4 min brief

The bottom line

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A Kenyan court upheld a security guard's summary dismissal because he ignored written cash-handling procedures, though he received earned wages and leave pay.

What this practically means

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Executive summary

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The Kenya National Private Security Workers Union sued Wells Fargo Ltd on behalf of Josephat Andala Ashiono, a grievant summarily dismissed after client monies of Kshs 807,500 entrusted to him for banking at the Co-Operative Bank of Kenya, Kakamega branch, were never banked. The cause was heard on 24 January 2022 with the Grievant and the Respondent's Human Resources Director testifying. The court held that procedural fairness was met: the Grievant recorded a statement, attended a disciplinary hearing with a witness after notice of the right to be accompanied, was informed of the dismissal with a right of appeal, and the appeal hearing was attended by union representatives, satisfying sections 35(1)(c) and 41 of the Employment Act. On substantive fairness under sections 43 and 45, the court found the Respondent proved valid and fair reasons: the Grievant ignored written Banking Support Procedures and left the money with an escort on alleged verbal instructions, which the court called reckless, noting the escort disappeared without banking the money. The Union's claim of an agreement for termination in lieu of summary dismissal failed, disentitling the Grievant to compensation and notice pay. Terminal dues were awarded as computed by the Respondent: Kshs 7,434/- earned wages and Kshs 8,816/- for 15 days accrued leave. Gratuity was refused under Regulation 17(2) of the Regulation of Wages (Protective Security Services) Order. The certificate of service had been issued. The court declared the summary dismissal fair, dismissed the cause, and ordered each party to bear its own costs given the social partnership between the parties.

Key legal issues

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01

Procedural fairness

Holding

Procedural fairness was complied with; the Grievant was informed of allegations, heard, and allowed an appeal

Reasoning

The Grievant was asked to record a statement, was invited to a disciplinary hearing with notice of the right to attend with a colleague, attended with a witness, was notified of summary dismissal with a right of appeal, and the appeal hearing was attended by union representatives. Sections 35(1)(c) and 41 of the Employment Act were satisfied.

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02

Substantive fairness

Holding

The Respondent established valid and fair reasons for dismissal

Reasoning

The reason for dismissal was the unprocedural handing over of Kshs 807,500 client money to an escort contrary to the Banking Support Procedures. The Grievant admitted leaving the escort at the bank contrary to written procedure, relying on alleged verbal instructions. The court found it reckless to ignore written procedures and suspicious that the escort disappeared without banking the money.

p. 2
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Summary dismissal vs termination by agreement

Holding

The alleged agreement for termination in lieu of summary dismissal was not proved

Reasoning

The Union alleged an agreement that the Grievant's employment be terminated in lieu of summary dismissal, which would have opened up compensation and notice pay, but adduced no proof of the agreement; therefore those remedies were unavailable.

p. 2
04

Terminal dues

Holding

Earned wages of Kshs 7,434/- and accrued leave of Kshs 8,816/- awarded; gratuity refused

Reasoning

The Union did not challenge the Respondent's wage computation and conceded the 15 days accrued leave in submissions. Gratuity is barred by Regulation 17(2) of the Regulation of Wages (Protective Security Services) Order following summary dismissal.

p. 2

Legal principles established

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  • An employer must follow written procedures for handling client monies and cannot rely on alleged verbal instructions to depart from them
  • Sections 43 and 45 of the Employment Act place the burden on the employer to prove reasons for dismissal as valid and fair

Court orders

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  1. 1.Declaration that the summary dismissal of the Grievant was fair
  2. 2.Award of Kshs 7,434/- being earned wages up to the date of dismissal
  3. 3.Award of Kshs 8,816/- being 15 days accrued leave
  4. 4.Decline of gratuity claim by virtue of Regulation 17(2) of the Regulation of Wages (Protective Security Services) Order
  5. 5.Certificate of Service noted as already issued; nothing turns on this relief
  6. 6.Each party to bear its own costs

Authorities

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Legislation

  • Employment Actsections 35(1)(c), 41, 43, 45
  • Regulation of Wages (Protective Security Services) OrderRegulation 17(2)
  • Legal Notice No. 53 of 2003relied on by the Union for gratuity claim
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act and the Employment Act, 2007 (trade dispute reported to Cabinet Secretary, Labour, and Certificate of Unresolved Dispute issued 14 March 2017)

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 National Private Security Workers Union v Wells Fargo Ltd [2022] KEELRC 193 (KLR)", Case Analysis (2022). Cause (not stated in judgment; filed 7 March 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/193/eng@2022-04-11

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