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ELRCPartially AllowedCause No 239 of 2017· [2022] KEELRC 882 (KLR)

Kioko Muindi v United Aryan (EPZ) Limited [2022] KEELRC 882 (KLR)

Employment and Labour Relations Court
8 February 2022
4,451 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled an employee's written apology promising no further claims did not waive his right to sue for unfair dismissal.

What this practically means

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Executive summary

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Kioko Muindi, a mechanic employed since February 2011, was summarily dismissed after a security officer found an upper looper sewing machine spare part concealed in his wallet as he left night shift on 26th August 2016. He sued for declarations that the dismissal was unlawful and unfair, one month's pay in lieu of notice, twelve months' compensation, costs and interest. The employer contended the dismissal was for a valid reason with fair procedure, and relied on a statement signed by the Claimant apologising and promising not to claim further payment, arguing it was a discharge voucher waiving future claims, supported by payment of Kshs.48,181.16 as terminal dues. The court found the statement was not a discharge voucher: it was undated, unilateral, contained no tabulation of entitlements and no indication of full and final settlement, so no waiver arose. On substance, the Claimant's admission of possession and concealment gave the employer a genuine belief, under Section 43(2) of the Employment Act, of attempted theft, making the dismissal substantively justifiable despite the absence of prosecution. On procedure, however, the employer failed to prove a disciplinary hearing: there were no minutes, no recall of the panel members, and an invitation by word of mouth contrary to the Respondent's own Disciplinary Code and Section 41 of the Employment Act. The dismissal was therefore procedurally unfair. The court awarded one month's pay in lieu of notice and, considering the Claimant's contribution to the termination and his failure to respond to the show cause notice, two months' salary as compensation under Section 49(1)(c). Judgment was entered for Kshs.86,999.91 with costs and interest.

Key legal issues

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01

Whether the Claimant's statement (Appendix F) amounted to a discharge voucher waiving future claims

Holding

It did not; the document was a unilateral apology and promise, not an agreement

Reasoning

The court found the statement undated, with no tabulation of entitlements such as leave, overtime or notice pay, no input by the Respondent, and no indication of receipt of monies in full and final settlement. The Claimant did not have the necessary information nor fully appreciate the effect of promising not to claim further payment.

p. 5
02

Whether the summary dismissal was substantively justified

Holding

Yes; genuine belief that the Claimant attempted to steal the spare part was a valid and fair reason

Reasoning

The Claimant admitted possession and concealment of the spare part in his wallet. Under Section 43(2), reasons are what the employer genuinely believed to exist at termination. The Claimant's claims that the part did not belong to the Respondent and that police exonerated him were dismissed as having no probative value; non-prosecution did not absolve him.

p. 5
03

Whether the summary dismissal was procedurally fair

Holding

No; no credible evidence of a disciplinary hearing, and the Respondent breached its own disciplinary code

Reasoning

Although the Claimant received the notice to show cause, RW1 produced no minutes of the disciplinary meeting, could not recall panel members or who invited the Claimant, and the invitation was by word of mouth contrary to the Disciplinary Code requiring written notice. The Claimant's assertion of no hearing therefore remained uncontroverted.

p. 6
04

Entitlement to reliefs

Holding

Declaration, one month's pay in lieu of notice and two months' compensation awarded

Reasoning

The appointment letter and Section 36 entitled the Claimant to one month's pay in lieu of notice despite summary dismissal. Under Section 49(1)(c) and (4), the court considered his five years of service, his substantive contribution to the termination and his failure to respond to the show cause notice, settling on two months' salary.

p. 7

Legal principles established

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  • A unilateral admission/apology by an employee lacking tabulation of entitlements and without employer input is not a discharge voucher or settlement agreement and does not waive claims
  • An employer must prove on a balance of probabilities a valid and fair reason and fair procedure under Section 45(2) of the Employment Act; a valid reason does not cure procedural unfairness

Court orders

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  1. 1.Declaration that the Claimant's dismissal from employment was unlawful and unfair
  2. 2.One month's salary in lieu of notice of Kshs.28,999.97
  3. 3.Compensation equivalent to two months' salary of Kshs.57,999.94 under Section 49(1)(c) of the Employment Act
  4. 4.Judgment for the Claimant against the Respondent for the sum of Kshs.86,999.91 with costs
  5. 5.Interest at court rates from the date of judgment till payment in full

Authorities

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Legislation

  • Employment ActSections 35, 36, 41, 43, 43(2), 44, 45, 45(2), 47, 49(1)(c), 49(4)
  • Constitution of KenyaArticles 159(2)(d), 48
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (13)

  • David Gichana Omuya v Mombasa Maize Millers Limited
    [2014] eKLR
  • Shankar Saklani v DHL Global Forwarding (K) Ltd
    [2013] eKLR
  • Damondar Jihabhai & Co Ltd & Another v Eustace Sisal Estates Ltd
    1967 EA 153
  • Coastal Bottlers Limited v Kimathi Mithika
    [2018] eKLR
  • Magdalene Kamene Nziuko v Standard Chartered Bank Limited
    [2019] eKLR
  • Bamburi Cement Limited v Farid Aboud Mohammed
    [2016] eKLR
  • Michael Dowling v Workplace Safety & Insurance Board
    [2004] CAN Lll 436 92
  • Krystalline Salt Limited v Kwekwe Mwakele & 67 others
    [2017] eKLR
  • Trinity Prime Investment Limited v Lion of Kenya Insurance Company Limited
    [2015] eKLR
  • Kenafric Industries Limited v John Gitonga Njeru
    [2016] eKLR
  • CMC Aviation Limited v Mohammed Noor
    [2013] eKLR
  • Naima Khamis v Oxford University Press (EA) Limited
    [2017] eKLR
  • Loice Otieno v Kenya Commercial Bank Ltd
    [2013] eKLR
Jurisdiction invoked
Original jurisdiction under the Employment Act, 2007 over a claim for unfair termination

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, "Kioko Muindi v United Aryan (EPZ) Limited [2022] KEELRC 882 (KLR)", Case Analysis (2022). Cause No 239 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/882/eng@2022-02-08

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