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ELRCDismissedELRC Cause (Nairobi)· [2023] KEELRC 2426 (KLR)

Kiilu v Standard Chartered Bank (K) Ltd (Cause 2191 of 2017) [2023] KEELRC 2426 (KLR)

Employment and Labour Relations Court
6 October 2023
4,351 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court dismissed a bank teller's unfair termination claim because Standard Chartered proved misconduct and followed a fair disciplinary process.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent bank from 1991/1992 and working as a teller, was suspended following a complaint by a customer, Peter Kamau, that Kshs 15,000 he deposited on 25th February 2016 was not credited to his account despite the deposit slip bearing the Claimant's teller stamp. The Claimant admitted stamping the slip after receiving only Kshs 10,000, stating he owed the customer money. Following a disciplinary hearing, his employment was terminated on 6th May 2016 for gross misconduct. He sued for Kshs 6,202,213.69, comprising notice pay, compensatory damages, leave dues and compensation for discrimination, alleging the termination was premeditated, discriminatory, irregular and unfair. The Respondent maintained the termination was for gross misconduct, procedurally executed, and justified. The court framed four issues: valid and fair reason, fair procedure, discrimination, and entitlement to reliefs. It held that the Respondent genuinely believed the Claimant imprudent, given his admissions, so a valid and fair reason existed under Sections 43 and 45 of the Employment Act. Procedure was fair: the Claimant was notified of the allegations and heard by a disciplinary panel, satisfying Section 41. The discrimination claim failed for lack of particulars and because the incident was not an ordinary shortfall. The Claim was dismissed in its entirety with each party bearing its own costs.

Key legal issues

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01

Substantive justification for termination

Holding

The Respondent had a valid and fair reason to terminate the Claimant on account of his conduct - stamping a deposit slip for Kshs 15,000 when he had received only Kshs 10,000

Reasoning

Sections 43 and 45(2)(a) and (b) of the Employment Act place the burden on the employer to prove reasons for termination, judged on the employer's genuine belief at termination on a balance of probability. The Claimant's own written statement, disciplinary hearing admissions, and cross-examination confirmed he knowingly stamped the deposit slip acknowledging an amount he had not received. His act was deliberate, not an inadvertent shortfall, and undermined the trust required of a bank teller.

p. 7
02

Fair procedure under Sections 41 and 45(2)(c)

Holding

The termination followed fair procedure; the Claimant was notified of the allegations and given an opportunity to be heard before a disciplinary panel

Reasoning

Section 41 requires notification of allegations and a hearing in the presence of a fellow employee or union representative. The Claimant received a notification dated 15th March 2016 referencing the transaction of 25th February 2016, informing him of the date, time, venue, panelists and his right to be accompanied. He appeared before the panel and gave his side. The allegation that a panelist introduced a new issue failed because that issue did not form a reason for termination.

p. 8
03

Discrimination

Holding

The claim of discrimination was not proved

Reasoning

The Claimant did not provide better particulars of the alleged discrimination, nor demonstrate that he was treated differently and less favourably than counterparts in similar circumstances. Further, his case was not an ordinary shortfall recoverable from salary but the deliberate stamping of a deposit slip for an amount he knew he had not received, distinguishing it from the comparator incidents he relied on.

p. 8

Legal principles established

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  • The burden of proving reasons for termination rests on the employer, on a balance of probability
  • An employer satisfies Section 41 where it notifies the employee of the allegations and affords a hearing before a disciplinary panel
  • A party alleging discrimination must give particulars and demonstrate differential treatment

Court orders

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  1. 1.The Claim is dismissed in its entirety
  2. 2.Each party bears its own costs

Authorities

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Legislation

  • Employment ActSections 41, 43, 45(2)(a), (b) and (c)
  • Evidence ActSections 17, 24, 26
  • Fair Administrative Action ActSection 4(3)
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticles 159(2)(d), 48

Cases cited (5)

  • Peter Kamau & another v National Bank of Kenya
    (2020) eKLR
  • Joseph Alusiola Musabayi v Vihiga County Assembly & another
    (2016) eKLR
  • Peter Mutinda Ngei v Rentokil Initial Limited
    (2022) eKLR
  • Gilbert Michael Maigacho v Coast Development Authority
    (2921) eKLR
  • National Bank of Kenya v Anthony Njue John
    [2019] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act; judgment does not cite the specific establishing provision

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, "Kiilu v Standard Chartered Bank (K) Ltd (Cause 2191 of 2017) [2023] KEELRC 2426 (KLR)", Case Analysis (2023). ELRC Cause (Nairobi). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2426/eng@2023-10-06

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