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ELRCPartially AllowedStatement of claim dated 3rd August 2017· [2022] KEELRC 635 (KLR)

Josephat Otieno Kongo v Riley Services Limited [2022] KEELRC 635 (KLR)

Employment and Labour Relations Court
22 February 2022
5,795 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~23 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that even when an employer has a good reason to fire someone, skipping a fair disciplinary process makes the dismissal unfair.

What this practically means

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Executive summary

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The Claimant, a security guard employed by the Respondent from 6th May 1991, was arrested on 2nd August 2014 at the Milimani Law Courts workstation over an attempted theft of tyres from a vehicle in the compound he was guarding. He was placed on indefinite suspension without pay by a letter dated 11th August 2014, issued a notice to show cause, participated in what the Respondent treated as a disciplinary meeting, was charged in Criminal Case No. 1118 of 2014 and later acquitted on 9th March 2017. By a letter dated 7th August 2015 he was summarily dismissed for negligence, with the dismissal backdated to 11th August 2014. He sued seeking declarations of unfair and unlawful termination, reinstatement, compensation, terminal dues, unpaid salary, notice pay, general and aggravated damages, a certificate of service, costs and interest. The Court framed three issues: whether he was on suspension until the criminal case was finalised; whether the summary dismissal was unlawful or unfair; and entitlement to reliefs. It found the dismissal letter countermanded the suspension, that the Claimant was aware of the dismissal before acquittal, that the Respondent had a valid and fair reason (negligence proved on a balance of probabilities, acquittal notwithstanding), but that the disciplinary process failed the Section 41 procedural fairness test, rendering the dismissal unfair. Reinstatement was time-barred under Section 12(3)(vii) of the ELRC Act. Judgment was entered for the Claimant with six months' salary as compensation, unpaid salary for the suspension period, costs and interest; terminal dues, general damages and aggravated damages were declined. Delivered virtually at Nairobi on 22nd February 2022 by Dr. Jacob Gakeri, Judge.

Key legal issues

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01

Whether the Claimant remained on suspension until the criminal case was concluded

Holding

The Claimant was in employment until 7th August 2015 when the indefinite suspension was countermanded by the dismissal letter; he was aware of the dismissal long before the criminal case concluded

Reasoning

The Claimant admitted on cross-examination that he was summarily dismissed before the criminal case ended, did not deny receiving the dismissal letter, used the same postal address on leave forms, and did not exercise his right of appeal. The indefinite suspension was superseded by the dismissal letter dated 7th August 2015.

p. 5
02

Whether the Respondent had a valid and fair reason for the summary dismissal

Holding

Yes - the Claimant's admitted negligence (leaving the yard unattended and failing to frisk the 'cleaner') justified dismissal on a balance of probabilities

Reasoning

The criminal standard does not apply in employment disputes; the employer need only prove the misconduct on a balance of probabilities. The Claimant's acquittal of theft did not exculpate him from negligence, which was established by his own admissions.

p. 6
03

Whether the termination procedure was fair under Section 41 of the Employment Act

Holding

No - the disciplinary process did not meet the statutory threshold, rendering the summary dismissal unfair

Reasoning

The minutes were illegible, had no agenda, findings or recommendation; the committee prosecuted the Claimant but made no recommendation; the Claimant's uncontroverted evidence was that he was only called to sign minutes; the Respondent led no evidence of invitation or the right to accompaniment; and the decision was made a year later and backdated.

p. 6
04

Whether the Claimant was entitled to salary for the suspension period

Holding

Yes - the Claimant had a legitimate expectation of payment, the disciplinary process neither found him culpable nor exculpated him, and the employer's conduct was an unfair labour practice

Reasoning

Following Grace Gacheri Muriithi, payment during suspension depends on the disciplinary outcome. Here the process neither exculpated nor found culpability, and the Respondent took 12 months to decide and backdated the dismissal to the suspension date, so the Court awarded salary for 11th August 2014 to 7th August 2015.

p. 8

Legal principles established

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  • An employer need only prove the reason for termination on a balance of probabilities, and an acquittal in criminal proceedings does not exculpate an employee from disciplinary liability
  • A sham disciplinary process, such as minutes without agenda, findings or recommendation and a decision made by persons who prosecuted the employee, fails the procedural fairness test under Section 41 of the Employment Act
  • It is an unfair labour practice to punish an employee for the shortcomings of the employer, including delaying a dismissal decision and backdating it to the date of suspension

Court orders

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  1. 1.Declaration that the termination of the Claimant's employment was unfair and unlawful for want of procedural propriety
  2. 2.The equivalent of 6 months' salary as compensation for unfair dismissal
  3. 3.Unpaid salary for the duration of suspension (11th August 2014 - 7th August 2015)
  4. 4.Costs of the suit
  5. 5.Interest at Court rates from the date of judgment till payment in full

Authorities

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Legislation

  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Employment Act, 2007Sections 41, 43, 44(4)(c), 45(2), 47(5), 49(1)(c), 51
  • Employment and Labour Relations Court Act, 2011Section 12(3)(vii)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Criminal Procedure ActSection 215

Cases cited (15)

  • Patrick Njuguna Kariuki v Del Monte (K) Limited
    [2012] eKLR
  • Mary Chemweno Kiptui v Kenya Pipeline Company
    [2014] eKLR
  • James Muiruri Njenga v Nakumatt Holdings Limited
    [2015] eKLR
  • Emmanuel Mambo Oduory v One Acre Fund
    [2020] eKLR
  • Pamela Nelima Lutta v Mumias Sugar Co. Ltd
    [2017] eKLR
  • Paul Ngeno v Pyrethrum Board of Kenya Ltd
    [2013] eKLR
  • Donald C. Avude v Kenya Forest Service
    [2015] eKLR
  • Elizabeth Wambui Mburu v Board of Directors, Kenya Plant Health Inspectorate Service
    [2019] eKLR
  • National Union of Mineworkers & others and the Commission for Conciliation Mediation and Arbitration & 2 others JR 2910/08
  • Pius Machafu Isindu v Lavington Security Guards Limited
    [2017] eKLR
  • Naima Khamis v Oxford University Press (EA) Limited
    [2017] eKLR
  • Kenafric Industries Limited v John Gitonga Njeru
    [2016] eKLR
  • Ahmed Mohammed Noor v Abdi Aziz Osman
    [2019] eKLR
  • Grace Gacheri Muriithi v Kenya Literature Bureau
    [2012] eKLR
  • Obongo & Another v Municipal Council of Kisumu
    [1971] EA p 91
Jurisdiction invoked
Original jurisdiction under the Employment and Labour Relations Court Act, 2011 (Section 12) and the Employment Act, 2007

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (4)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Josephat Otieno Kongo v Riley Services Limited [2022] KEELRC 635 (KLR)", Case Analysis (2022). Statement of claim dated 3rd August 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/635/eng@2022-02-22

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