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Case Brief · caselaw.co.ke
ELRCPartially AllowedMemorandum of Appeal filed 25 August 2022 (appeal from Bondo PMCC judgment of 28 July 2022)· [2023] KEELRC 467 (KLR)

G4S Kenya Ltd v Odowa (Appeal E029 of 2022) [2023] KEELRC 467 (KLR)

Employment and Labour Relations Court
22 February 2023
1,435 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan court cut a security guard's unfair dismissal compensation but confirmed employers must involve an employee's union in disciplinary hearings.

What this practically means

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Executive summary

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This was a first appeal to the Employment and Labour Relations Court at Kisumu against a judgment of the Principal Magistrate at Bondo delivered on 28 July 2022, which found that G4S Kenya Ltd had unfairly terminated the employment of David Ayieko Odowa and awarded him gratuity of Kshs 245,157/-, 12 months' compensation of Kshs 173,052/- and one month's salary in lieu of notice of Kshs 14,421/-. The appellant contended the dismissal was for gross misconduct (irregular handling of the cash book, failure to account for courier sales and withholding customer cash) and that the procedure was fair. The court, re-evaluating the evidence as on a first appeal, held that the disciplinary hearing was procedurally unfair because the employer, knowing the respondent was a subscription-paying member of the Kenya National Private Security Workers Union, failed to involve the Union despite the absence of a recognition agreement. However, on substance, the respondent's admitted breaches of the Courier Operations Manual amounted to dishonesty warranting dismissal, so the appellant proved the reasons for dismissal. Applying section 49(4) of the Employment Act and the respondent's roughly 17 years of service, the court found the maximum 12 months' compensation excessive and substituted an award of 8 months' gross salary, Kshs 115,368/-. The awards of gratuity and notice pay were sustained. The appeal otherwise failed, with each party bearing its own costs of appeal and the respondent retaining trial-court costs.

Key legal issues

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01

Procedural fairness of the disciplinary hearing

Holding

The hearing was procedurally unfair because the Union was not involved despite the respondent being a subscription-paying union member

Reasoning

The respondent's pay slip showed he was a subscription-paying member of the Kenya National Private Security Workers Union, and the Union had previously reported a trade dispute to the Cabinet Secretary. The court held the employer should have involved the Union even without a recognition agreement, agreeing with the Magistrate that the hearing was tainted by failure to involve the Union.

p. 3
02

Substantive fairness of the dismissal

Holding

The appellant proved valid reasons for dismissal - breaches of the Courier Operations Manual amounting to dishonesty

Reasoning

The respondent admitted skipping cash receipt sheets and failing to account for customer monies. Although the investigations report was unsigned by its author, the respondent did not object to its reliance at the disciplinary hearing and the author was present and available for questioning. The breaches of the Courier Operations Manual manifested dishonesty warranting dismissal.

p. 4
03

Quantum of compensation for unfair termination

Holding

Maximum compensation of 12 months was excessive; 8 months' gross salary was appropriate

Reasoning

Applying the factors in section 49(4) of the Employment Act, including the respondent's approximately 17 years of service from 2003 to 2020, and the finding that the appellant proved the reasons for dismissal but got the process wrong, the court held that compensation equivalent to 8 months' gross salary would have been appropriate, reducing the award to Kshs 115,368/-.

p. 4

Legal principles established

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  • On a first appeal, the court must re-evaluate the evidence and make its own findings, conscious that it did not see the witnesses
  • An employer aware that an employee is a subscription-paying member of a union should involve the Union in the disciplinary process even absent a recognition agreement
  • Sections 43 and 45 of the Employment Act place the burden of proving reasons for termination on the employer

Court orders

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  1. 1.The appeal fails save that the award of compensation is vacated and substituted with compensation of Kshs 115,368/- (equivalent of 8 months' gross salary)
  2. 2.The other awards by the Principal Magistrate (gratuity of Kshs 245,157/- and one month's salary in lieu of notice of Kshs 14,421/-) are sustained
  3. 3.Each party to bear own costs of the appeal
  4. 4.Respondent to have costs before the trial court

Authorities

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Legislation

  • Employment Actsection 41
  • Employment Actsections 43 and 45
  • Employment Actsection 49(4)
  • Regulation of Wages (Protective Security Services) Order
On appeal from
Principal Magistrate's Court, Bondo
Jurisdiction invoked
First appeal from the Principal Magistrate's Court under the Employment Act framework (Employment and Labour Relations Court appellate jurisdiction)

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, "G4S Kenya Ltd v Odowa (Appeal E029 of 2022) [2023] KEELRC 467 (KLR)", Case Analysis (2023). Memorandum of Appeal filed 25 August 2022 (appeal from Bondo PMCC judgment of 28 July 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/467/eng@2023-02-22

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