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ELRCPartially AllowedCause No 244 of 2017· [2022] KEELRC 4125 (KLR)

Mwangi v G4S (Kenya) Ltd (Cause 244 of 2017) [2022] KEELRC 4125 (KLR)

Employment and Labour Relations Court
22 September 2022
4,277 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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A Kenyan court ruled a courier driver's firing over suspected fuel theft was unfair because the employer couldn't prove it, awarding him six months' salary plus dues.

What this practically means

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Executive summary

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The claimant, employed by the respondent from 2013 as a courier rider and from September 2016 as a courier driver based in Nakuru, was summarily dismissed on March 17, 2017 over discrepancies between odometer readings and GPS tracking for vehicle KAX 563L, with the respondent alleging unaccounted fuel and mileage manipulation. The respondent contended the claimant committed gross misconduct under section 44 of the Employment Act following a disciplinary hearing; the claimant denied attending misconduct, was on leave for part of the relevant period, and asserted he was denied substantive and procedural fairness. The court (ELRC, Nakuru, Nderitu J) framed three issues: lawfulness of the dismissal, entitlement to reliefs, and costs. On substantive fairness, it held the respondent's suspicion did not amount to reasonable and sufficient grounds under section 44(4)(g): the vehicle was shared with other drivers, the claimant was on leave during part of the loss period, the respondent cited inconsistent quantities and values of unaccounted fuel, and it failed to produce mileage records as custodian under sections 10 and 74. Procedurally, however, the disciplinary process largely complied with Article 47 and the Act. The court declared the dismissal wrongful and unfair, refused the discrimination declaration, and awarded compensation of six months' gross salary (Kshs 132,054) for the claimant's contribution to the dismissal, unpaid leave arrears, and one month's salary in lieu of notice, totalling Kshs 196,609 with interest, less Kshs 31,699 already paid. Gratuity and general damages were denied. Costs were awarded to the claimant.

Key legal issues

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01

Whether the summary dismissal was substantively fair

Holding

The dismissal lacked substantive fairness; the suspicion of fuel theft was not reasonable and sufficient grounds and the alleged loss could not be attributed to the claimant alone.

Reasoning

The claimant's vehicle was also driven by others, including at night; the claimant was on leave during part of the period of the alleged loss; the investigation report, hearing notice and dismissal letter each cited different quantities and values of unaccounted fuel, showing uncertainty; and the employer failed to produce the mileage records allegedly falsified. A loss of about Kshs 10,000 was also not substantial detriment. A warning and surcharge would have sufficed.

p. 6
02

Whether the dismissal was procedurally fair

Holding

To a large extent the respondent complied with procedural fairness under section 41 and Article 47; the only lapse (failure to inform of the right to a written response) caused no prejudice.

Reasoning

The claimant received a notice of disciplinary hearing dated March 7, 2017, served March 8, 2017, clearly stating the charge; he attended the hearing on March 10, 2017 accompanied by a colleague and a union shop steward; and he was given an opportunity to defend himself before the dismissal letter of March 17, 2017.

p. 6
03

Entitlement to reliefs

Holding

Declaration of unfair dismissal granted; six months' compensation, unpaid leave arrears and one month's salary in lieu of notice allowed; discrimination declaration, gratuity and general damages denied; Kshs 31,699/= already paid deducted.

Reasoning

Because the dismissal lacked substantive fairness, compensation under section 49(1)(c) was warranted, but the claimant's own contribution (failing to report the faulty odometre) reduced the award to six months' gross salary. Leave arrears and notice pay were granted as the employer failed to produce records to rebut them. Gratuity failed on a contractual condition; general damages and a discrimination finding failed on the evidence.

p. 8

Legal principles established

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  • An employer must establish both substantive and procedural fairness before summary dismissal; substantive fairness requires a valid reason recognised in law under sections 43, 44, 45, 46 and 47(5) of the Employment Act.
  • Mere suspicion of an employee's involvement in an offence against the employer is not sufficient grounds for summary dismissal; the grounds must be reasonable and sufficient under section 44(4)(g).
  • Where a vehicle is operated by multiple drivers, an employer cannot attribute fuel loss to one driver without evidence; and the employer bears the duty to keep and produce employment records under sections 10 and 74 of the Act.
  • Substantive and procedural fairness go hand in hand; compliance with one without the other renders the dismissal faulty.

Court orders

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  1. 1.A declaration that the summary dismissal of the claimant was unreasonable and wrongful for lack of substantive fairness
  2. 2.Compensation for wrongful dismissal of Kshs 132,054.00 (six months' gross salary)
  3. 3.Unpaid leave arrears of Kshs 42,436.45
  4. 4.One month's salary in lieu of notice of Kshs 22,009.00
  5. 5.Interest at court rates on the total of Kshs 196,609.00 from the date of judgment till payment in full
  6. 6.Deduction of Kshs 31,699/= already processed and expended as terminal dues from the amount payable to the claimant
  7. 7.Costs of the cause awarded to the claimant

Authorities

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Legislation

  • Employment Act, 2007section 44
  • Employment Act, 2007section 44(4)(c)
  • Employment Act, 2007section 44(4)(g)
  • Employment Act, 2007sections 43, 45, 46, 47(5)
  • Employment Act, 2007sections 35, 40, 41
  • Employment Act, 2007sections 10 and 74
  • Employment Act, 2007section 49(1)(c) and 49(4)
  • Constitution of Kenya, 2010Article 47

Cases cited (4)

  • Mary Chemweno v Kenya Pipeline Company Limited
    (2017) eKLR
  • Loice Otieno v Kenya Commercial Bank Limited
    (2013) eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    (2012) eKLR
  • Kenya Revenue Authority v Reuwell Waithaka Gitahi & 2 Others
    (2019) eKLR
Jurisdiction invoked
Employment Act, 2007 (sections 10, 35, 40, 41, 43, 44, 45, 46, 47(5), 49 and 74) and Article 47 of the Constitution

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, "Mwangi v G4S (Kenya) Ltd (Cause 244 of 2017) [2022] KEELRC 4125 (KLR)", Case Analysis (2022). Cause No 244 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/4125/eng@2022-09-22

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