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ELRCDismissedNot stated in judgment· [2022] KEELRC 4112 (KLR)

Kenya Union Of Domestic, Hotels, Educational Institutions, Hospitals And Allied Workers Union v Gertrudes Children Hospital (Cause 1184 of 2016) [2022] KEELRC 4112 (KLR)

Employment and Labour Relations Court
30 June 2022
1,682 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed that employees who misuse company fuel cards can be dismissed without notice or compensation if the employer follows fair procedures.

What this practically means

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Executive summary

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The claimant, a registered trade union, brought a claim on behalf of two grievant drivers, Jared Masenge and Peter Shamalla, summarily dismissed by the respondent in February 2015 following an audit of its transport department. The audit, prompted by a 92.5% increase in vehicle expenses, revealed allegedly fraudulent and excessive fuelling on vehicles KAT 676Q and KAX 707L. Both grievants were issued show cause notices, denied the allegations, and after disciplinary hearings were dismissed for gross misconduct relating to fuel card misuse, unauthorized credit facility dealings, and tampering with vehicle mileage records. The claimant sought compensation for unfair termination, notice pay, and compensation for untaken leave days and public holidays worked. The court held that under section 44(4) of the Employment Act, 2007, the list of gross misconduct is not exhaustive and an employer may dismiss summarily based on internal policy breaches. Applying Prof Macha Isunde v Lavington Security Guards Limited, the court noted the employer's obligations to prove reasons and afford a hearing, and found the respondent had complied through audits, show cause notices and disciplinary hearings. The grievants' breach of fuelling procedure and failure to maintain vehicle logs justified summary dismissal under section 44(4)(g) read with section 41(2). The leave and public holiday claims failed for want of particulars. The entire claim was dismissed with costs to the respondent.

Key legal issues

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01

Whether summary dismissal for fuel card misuse was justified

Holding

Yes; the grievants' breach of fuelling procedure and failure to keep logs amounted to gross misconduct under section 44(4)(g) read with section 41(2)

Reasoning

The court found the respondent conducted an audit revealing exorbitant fuel usage, issued show cause notices and held disciplinary hearings. The grievants denied the allegations but failed to give satisfactory responses against signed job descriptions requiring efficient use of property and proper vehicle maintenance. Their conduct contrary to laid down fuelling policy led to financial liability, justifying summary dismissal under section 44(4)(g) read with section 41(2).

p. 4
02

Scope of gross misconduct under section 44(4)

Holding

The list in section 44(4) is not exhaustive; internal policy breaches may constitute gross misconduct

Reasoning

The court relied on section 44(4) of the Employment Act and authority that the enumeration of gross misconduct is non-exhaustive. Where internal policy defines conduct as gross misconduct, pursuant to section 12 read with section 44, dismissal may be justified even for conduct outside the statutory list.

p. 3
03

Claim for leave days and public holidays

Holding

Dismissed for want of particulars

Reasoning

The court noted the claimants did not specify the periods when annual leave was earned or the particular public holidays worked, given all public holidays are gazetted. Without such particulars the claim could not be substantiated and failed.

p. 4

Legal principles established

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  • An employer may summarily dismiss an employee for gross misconduct on grounds beyond the listed matters in section 44(4), based on internal policy and practices
  • The employer bears the burden to prove reasons for termination and that the grounds are justified, and must follow the notification and hearing process under section 41

Court orders

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  1. 1.The claims made are found without foundation and dismissed in their entirety
  2. 2.Costs to the respondent

Authorities

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Legislation

  • Employment Act, 2007section 44(4), section 44(4)(g), section 44, section 41, section 41(2), section 43, section 47(5), section 12

Cases cited (2)

  • Pheoby Aloo Inyanga v Stockwell One Homes Management Limited & another
    [2022] eKLR
  • Prof Macha Isunde v Lavington Security Guards Limited
    [2017] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction 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, "Kenya Union Of Domestic, Hotels, Educational Institutions, Hospitals And Allied Workers Union v Gertrudes Children Hospital (Cause 1184 of 2016) [2022] KEELRC 4112 (KLR)", Case Analysis (2022). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/4112/eng@2022-06-30

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