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ELRCDismissedNot stated in the judgment text· [2023] KEELRC 1358 (KLR)

Bett v East Africa Portland Cement Company (Cause 1562 of 2014) [2023] KEELRC 1358 (KLR)

Employment and Labour Relations Court
2 June 2023
5,193 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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A Kenyan court upheld a stores clerk's dismissal for unaccounted cement stock, ruling he lost his chance to defend himself by walking out of the disciplinary hearing.

What this practically means

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Executive summary

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The claimant, employed by the respondent as a stores clerk from 2003, was interdicted on 12th April 2013 over the loss of 904 bags of cement valued at Kshs 662,970 and a float of Kshs 40,000 at the respondent's Meru depot, and summarily dismissed on 27th May 2013 following a disciplinary process. He sought reinstatement or, alternatively, compensatory damages and a written apology, contending the dismissal was unlawful and malicious and that the disciplinary process was irregular - he had reported a burglary, was excluded from the audit, received short notice of the hearing, faced an improperly constituted panel, and was arrested after walking out of the hearing. The respondent maintained it had a valid reason and followed fair procedure. The court framed three issues: valid and fair reason, procedural fairness, and entitlement to reliefs. On substance, the court found the claimant failed to account for 954 bags valued at Kshs 701,190, did not rebut the audit evidence that a large-scale theft was impracticable, and incongruously processed transactions on the day he alleged a theft, eroding the trust his position demanded. Applying British Leyland v Swift, the dismissal was within the band of reasonableness. On procedure, the claimant was notified, responded in writing, and attended the hearing with union representatives, but walked out at his union's direction, squandering his opportunity to be heard. His criminal acquittal did not immunize him from discipline, disciplinary and criminal proceedings being distinct. The claim was dismissed in its entirety with each party bearing its own costs.

Key legal issues

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01

Whether there was a valid and fair reason for termination

Holding

Yes - failure to account for 954 bags of cement and a float of Kshs 40,000 in a position of utmost trust was a valid and fair reason.

Reasoning

Under Sections 43(1) and 45(2) of the Employment Act the employer bears the burden of proving valid and fair reasons. The claimant did not controvert the audit findings showing discrepancies between physical stock and bin card balances, nor rebut the evidence that a theft of that scale was impracticable. He undertook transactions on the very day he alleged a theft, undermining his burglary account. Applying the reasonable employer test in British Leyland v Swift, the dismissal was justified.

p. 7
02

Whether the claimant was accorded procedural fairness under Section 41 of the Employment Act

Holding

Yes - he was notified of the allegations, responded in writing, was invited to the hearing with union representatives, but walked out of his own will.

Reasoning

Section 41 requires notification of allegations and an opportunity to be heard with a fellow employee or union representative. The claimant was interdicted, responded to the show-cause letter, and attended the hearing with union officials. By his own admission his union chairman directed him to walk out, so he squandered the opportunity to be heard. The CBA did not substantiate his complaint about panel composition, and his criminal acquittal did not bar the disciplinary process.

p. 9
03

Entitlement to reliefs sought

Holding

None - the dismissal being lawful and fair, reinstatement, damages, arrears and apology were not available.

Reasoning

Having found both substantive and procedural fairness established, the court held that the claims for salary arrears and compensatory damages fell away, and dismissed the entire claim. Costs were left to each party, indicating the court exercised its discretion on costs liberally despite dismissing the claim.

p. 9

Legal principles established

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  • The burden rests on the employer to prove that the reasons for termination are valid and fair.
  • The reasonableness of a dismissal is judged by the band of reasonableness within which a reasonable employer might act.
  • An employee who walks out of a disciplinary hearing squanders the employer's internal grievance mechanisms and cannot later claim he was not heard.
  • Disciplinary proceedings cannot be equated to criminal proceedings; the degree of proof and objectives differ.
  • An acquittal in a criminal case does not automatically render an employee immune to disciplinary action by an employer.

Court orders

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  1. 1.Dismissal of the claim in its entirety
  2. 2.Each party to bear its own costs

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSection 43(1)
  • Employment ActSection 45(2)(a) and (b)
  • Employment ActSection 45(2)(c)
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (11)

  • Pius Machafu Isindu v Lavington Security Guards Limited
    (2017) eKLR
  • Patrick Njuguna Kariuki v Del Monte (K) Limited
  • Matthew Kipchumba Koskei v Baringo Teachers SACCO
  • Paul Billy Nyagilo v East African Portland Cement Co. Ltd
    (2017) eKLR
  • Albert Mutekhele Maunda v Postal Corporation Kenya
    (2019) eKLR
  • Thomas Barkasiam Miningwo v Egerton University
    (2015) eKLR
  • British Leyland UK Ltd. v Swift
    [1981] IRLR 91
  • Jackson Butiya v Eastern Produce Limited
    Industrial Court Cause No. 335 of 2011
  • Bett Francis Barngetuny & another v Teachers Service Commission & another
    [2015] eKLR
  • Geoffrey Kiragu Njogu v. Public Service Commission & 2 others
    [2015] eKLR
  • Attorney General & another v Andrew Maina Githinji & another
    [2016] eKLR
Jurisdiction invoked
First-instance jurisdiction of the Employment and Labour Relations Court over the Memorandum of Claim dated 29th August, 2014 under the Employment Act

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, "Bett v East Africa Portland Cement Company (Cause 1562 of 2014) [2023] KEELRC 1358 (KLR)", Case Analysis (2023). Not stated in the judgment text. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1358/eng@2023-06-02

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