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ELRCPartially AllowedNot stated in the judgment· [2023] KEELRC 1868 (KLR)

Mbaka v Athi River Shalom Hospital (Cause 216 of 2018) [2023] KEELRC 1868 (KLR)

Employment and Labour Relations Court
24 July 2023
3,107 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled a chef's dismissal unfair because the employer couldn't prove its theft-related accusations or follow fair procedure, awarding compensation and costs.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from 24th October 2006 as a Chef and later Head of Hospitality Department on a monthly salary of Kshs. 16,500/-, was summarily dismissed in August 2017 following the discovery of theft by other employees in his department. He claimed the dismissal was unfair and unlawful and sought a declaration, terminal dues including house allowance and overtime, a Certificate of Service, twelve months' salary as compensatory damages, costs and interest. The Respondent contended the Claimant was a poor performer with prior warnings, that pilferage occurred under his watch unreported, and that his conduct attracted summary dismissal under sections 44(3) and (4) of the Employment Act, 2007. It asserted he was heard by a Disciplinary Committee, issued a Certificate of Service and paid terminal dues of Kshs. 38,596/-. The Respondent did not attend the hearing despite service. The court found that the investigation report was never availed, the accusations of negligence and complicity in theft remained mere allegations, and the Claimant was notably absent from the list of accused employees. The poor-performance claim was found hard to believe absent performance metrics. Applying sections 41, 43 and 45 of the Employment Act and Walter Ogal Anuro v Teachers Service Commission, the court held the dismissal failed both procedural and substantive justice and was ipso facto unfair. It awarded six months' salary as compensation (Kshs. 113,850/-) and house allowance at 15% of basic salary for the last year of service (Kshs. 29,700/-), confining the house allowance claim to one year as a continuing wrong. No overtime or Certificate of Service was awarded. Costs and interest at court rates were granted to the Claimant.

Key legal issues

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01

Substantive justification for the summary dismissal

Holding

The Respondent failed to prove the alleged reasons (negligence, complicity in theft, poor performance); the accusations remained mere allegations since the investigation report was not availed and the Claimant was not among the accused persons.

Reasoning

The court noted that although an investigation was alleged, its report was never produced in evidence. The Claimant was absent from the list of employees charged over the theft. The assertion that the Claimant was a poor performer was unsupported by performance metrics, and his retention for over 10 years belied the claim. The employer therefore failed to discharge its burden under sections 43 and 45 of the Employment Act.

p. 5
02

Procedural fairness of the dismissal

Holding

The dismissal failed the procedural and substantive justice requirements of sections 41, 43 and 45 and was therefore unfair and unlawful.

Reasoning

Relying on Walter Ogal Anuro v Teachers Service Commission, the court held that the employer must ensure both procedural fairness and substantive justice when disciplining an employee. Since the Respondent did not adhere to these requirements under sections 41, 43 and 45, the dismissal was ipso facto unfair and unlawful, entitling the Claimant to compensation.

p. 5
03

House allowance claim

Holding

The Claimant was entitled to house allowance at 15% of basic salary for the last year of service only, as no itemisation of salary showed it was paid.

Reasoning

The employer gave no breakdown on the payslip and the contract did not indicate a gross consolidated salary. Failure to itemise leaves the employer open to the house allowance claim. However, because the non-payment was a continuing wrong and the Claimant never sought it earlier, the claim was confined to the last year of service, awarded at 15% of the basic salary.

p. 5
04

Allegation of poor performance and prior warnings

Holding

The court found the poor-performance allegation hard to believe given the absence of performance metrics and the Claimant's long retention.

Reasoning

The two warning letters from 2012 and 2014 had expired by the time of the dismissal. No performance metrics were availed, and the Claimant had served over ten years and was retained rather than dismissed. The court characterised this as a case of an employer alleging poor performance merely to justify a dismissal made without proper cause.

p. 5

Legal principles established

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  • Where an employer fails to prove the reason for termination and adherence to fair procedure, the dismissal is unfair and unlawful
  • Unitemised payslips or salary leave the employer open to claims for unpaid house allowance
  • Claims for non-payment of house allowance are subject to a one-year limitation as continuing wrongs

Court orders

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  1. 1.A declaration that the Claimant's dismissal from the Respondent's service was unfair and unlawful within the meaning of the Employment Act sections 41, 43 and 45
  2. 2.6 month's salary as compensation for the unfair and unlawful manner of dismissal of Kshs. 113,850/-
  3. 3.House allowance for 12 months of Kshs. 29,700/-
  4. 4.Costs of the suit to the Claimant
  5. 5.Interest on the compensation and house allowance at court rates from the date of judgment till payment in full

Authorities

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Legislation

  • Employment Act, 2007section 43
  • Employment Act, 2007section 45
  • Employment Act, 2007section 41
  • Employment Act, 2007section 44(3) and (4)(c), (e) and (g)

Cases cited (5)

  • Mary Chemweno Kiptui v Kenya Pipeline Company Limited
    [2014] eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Anthony Mkala Chitavi v Malindi Water & Sewerage Company Ltd
    [2013] eKLR
  • Francis Nyongesa Kweyu v Eldoret Water and Sanitation Company Limited
    [2017] eKLR (ELRC Kericho Cause No. 7 of 2017)
  • Kipkirui Chepkeres Labati v Cooperative Bank of Kenya Limited
    [2022] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (sections 41, 43, 44 and 45)

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, "Mbaka v Athi River Shalom Hospital (Cause 216 of 2018) [2023] KEELRC 1868 (KLR)", Case Analysis (2023). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1868/eng@2023-07-24

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