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ELRCDismissedMemorandum of appeal dated July 28, 2021 (number not stated in judgment)· [2023] KEELRC 393 (KLR)

H Young & Company (EA) Ltd v Wambui (Appeal E077 of 2021) [2023] KEELRC 393 (KLR)

Employment and Labour Relations Court
16 February 2023
2,117 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court threw out an employer's appeal, confirming that even where an employee sabotages the disciplinary process, dismissal without genuinely proven reasons is unlawful.

What this practically means

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Executive summary

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The appellant employer appealed the entire decision of the trial Principal Magistrate which had found the summary dismissal of its employee, an excavator operator accused of siphoning fuel from excavator Tex-02, unlawful and wrongful, awarding a certificate of service, notice pay at Kshs 64,233.00, three months' salary compensation, costs and interest. On a first appeal, the Employment and Labour Relations Court (Byram Ongaya, Principal Judge) re-examined the facts and dismissed the appeal in full. On salary, the court held the last gross pay of Kshs 64,233.00 including overtime correctly formed the basis of notice pay under sections 35 and 36 of the Employment Act, since remuneration includes all payments. On procedure, the court held that although the timelines in the show cause letter were short, they were saved by section 44(1); the respondent, having refused to accept the show cause letter and submit to the disciplinary process, had himself defeated due process, so there was no procedural unfairness. However, on the substantive reason, the court upheld the trial court's finding that the appellant failed to establish a valid reason under section 43 and fairness under section 45, as the investigation did not implicate the respondent on reasonable grounds. The award of three months' salary was found just and fair, taking into account the respondent's substantial contribution to his dismissal. The trial court's judgment and decree were upheld, with each party bearing its own costs of the appeal because the respondent failed to file submissions as directed.

Key legal issues

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01

Notice pay computation

Holding

Trial court did not err in awarding notice pay at the actual last gross pay of Kshs 64,233.00 inclusive of overtime

Reasoning

The statement of response did not expressly deny the pleaded gross salary. The November 2018 payslip showed last gross pay of Kshs 64,233.00 including overtime and house allowance. Section 36 requires payment of remuneration that would have been earned had notice under section 35 been given, and remuneration entails the sum of all payments to the employee, including overtime.

p. 3
02

Procedural fairness of the dismissal

Holding

There was no procedural unfairness; the respondent defeated the due process accorded to him by refusing the show cause letter

Reasoning

The show cause letter's short timelines were saved by section 44(1), which permits dismissal with no or shorter notice for gross misconduct. The legitimate course for the employee was to accept the letter, respond and be heard; he instead got annoyed and refused to submit to the process, frustrating it. The trial court's contrary finding rested on extraneous considerations.

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Validity of the reason for termination

Holding

The summary dismissal was unfair for want of valid reasons; suspicion was not established on reasonable and sufficient grounds

Reasoning

The trial court's analysis of the evidence was not faulted: the investigation report showed the respondent was not at the scene, the fuel attendant and guards were not questioned, and there was no finding he tampered with seals or held tank keys. The trial court did not raise the standard of proof above a balance of probabilities. Sections 43 and 45 were not satisfied.

p. 4
04

Compensation award of 3 months' salary

Holding

The award of Kshs 192,699.00 (3 months' salaries) was just and fair despite the employee's contribution to his dismissal

Reasoning

Although no section 49 factors were expressly referred to by the trial court, the appellate court considered the length of service and that the respondent substantially contributed to his dismissal by refusing the show cause letter and the disciplinary process. On that basis the award was found fair and ground (g) of appeal failed.

p. 4

Legal principles established

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  • An employee is required to cooperate with and submit to the employer's disciplinary process; refusal to accept and respond to a show cause letter defeats a claim of denial of due process
  • A summary dismissal must rest on a valid reason proved to the standard of the balance of probabilities under sections 43 and 45 of the Employment Act, notwithstanding the fairness of procedure

Court orders

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  1. 1.The appeal is dismissed with orders each party to bear own costs of the appeal
  2. 2.The final orders in the judgment by the trial Court herein and the decree therefrom are hereby upheld

Authorities

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Legislation

  • Employment Act, 2007section 35
  • Employment Act, 2007section 36
  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 44(1)
  • Employment Act, 2007section 44(4)(g)
  • Employment Act, 2007section 45
  • Employment Act, 2007section 49
On appeal from
Trial court (Principal Magistrate's Court)
not stated
Jurisdiction invoked
First appeal under the Employment Act framework (section 44(1), 41, 43, 45, 49 of the Employment Act, 2007 applied); exact enabling provision not stated in the judgment

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, "H Young & Company (EA) Ltd v Wambui (Appeal E077 of 2021) [2023] KEELRC 393 (KLR)", Case Analysis (2023). Memorandum of appeal dated July 28, 2021 (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/393/eng@2023-02-16

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