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ELRCDismissedELRC Appeal (Kakamega), appeal from Butali CMELRC No. 4 of 2020· [2024] KEELRC 172 (KLR)

Dungani v West Kenya Sugar Company Limited (Employment and Labour Relations Appeal 12 of 2023) [2024] KEELRC 172 (KLR)

Employment and Labour Relations Court
8 February 2024
6,447 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~26 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court upheld a fuel-theft dismissal, confirming employees must first prove unfair termination and can't raise new issues on appeal.

What this practically means

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Executive summary

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Joseph Mulira Dungani appealed to the Employment and Labour Relations Court at Kakamega against the judgment of Hon. Z.J. Nyakundi (SPM) in Butali CMELRC No. 4 of 2020, which dismissed his claim against West Kenya Sugar Co. Ltd for unfair termination of his employment as a winch helper on 16th November 2019 following alleged siphoning of about 11 litres of fuel from winch KTCB 749T, detected through the employer's Fuel Level Sensor (FLS) system. The appeal, canvassed by written submissions, raised the burden and standard of proof, procedural fairness under section 41 of the Employment Act, substantive fairness of the reasons for dismissal, and entitlement to reliefs including compensation, notice pay, leave and housing allowances, overtime and a certificate of service. The court, applying Selle v Associated Motor Boat Company, re-evaluated the evidence. It held that under section 47(5) the employee bears the burden of proving unfair termination, discharged by a prima facie case whereupon the employer must justify the reasons under sections 43 and 45; that employment claims are civil, proved on a balance of probabilities, not beyond reasonable doubt; and that the dismissal met both procedural and substantive fairness. The court stressed that unpleaded issues, notably the alleged faultiness of the FLS and the choice of union representatives, could not be raised for the first time on appeal. Applying the British Leyland band-of-reasonableness test, it found summary dismissal for suspected criminal offence against the employer's property justified under section 44(4). All pecuniary reliefs were refused as unfounded. The appeal was dismissed, the magistrate's judgment upheld, and, to temper justice with mercy, each party ordered to bear its own costs.

Key legal issues

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01

Burden and standard of proof in unfair termination claims

Holding

The burden of proving unfair termination lies on the employee, discharged by a prima facie case, whereupon the employer must justify the reasons; the standard is balance of probabilities, not beyond reasonable doubt

Reasoning

Section 47(5) of the Employment Act allocates the burden: the employee must prove unfair termination occurred, while the employer justifies the grounds under sections 43 and 45. The employee discharges the initial burden by establishing a prima facie case outside the four corners of section 45. The court adopted Josephine M. Ndungu and its own earlier decision, holding employment claims are civil so the criminal standard does not apply even to fuel-siphoning allegations.

p. 6
02

Procedural fairness under section 41 of the Employment Act

Holding

The dismissal complied with section 41: reasons were given in writing in a language the appellant understood, he responded in writing to the show cause letter, was informed of his right to representation and witnesses, and a disciplinary hearing was held

Reasoning

The court confined itself to the pleadings at trial, which alleged only that reasons were not explained in a language the claimant understood and that section 41 procedures were not applied. The documents produced - suspension/show cause letter, written response, hearing notice, minutes and dismissal letter - showed compliance, confirmed at cross-examination. Issues like the FLS system's faultiness and choice of union representatives were unpleaded and could not be raised on appeal.

p. 8
03

Substantive fairness - validity of the reason for dismissal (fuel siphoning established by Fuel Level Sensor)

Holding

The FLS-based reason was valid and fair; being an accomplice to fuel siphoning was gross misconduct under section 44(4), and a reasonable employer could dismiss on those facts

Reasoning

The fuel siphoning was never denied and the FLS functionality was never challenged in the pleadings. The respondent produced FLS graphs and explained the system, satisfying the Kyula threshold of verifying misconduct through internal systems. The court applied the British Leyland band-of-reasonableness test: the appellant, a winch helper on duty when fuel was siphoned, damaged the trust, and summary dismissal was reasonable, the lack of written warning not affecting summary dismissal for suspected criminal offence against the employer's property.

p. 11
04

Entitlement to reliefs sought at trial

Holding

Having upheld the dismissal as lawful and fair, the court rejected all pecuniary reliefs; the certificate of service was not an issue on appeal

Reasoning

Section 49 remedies depend on a finding of unfair dismissal, which failed. Leave pay was shown paid; housing allowance and underpayment failed on the consolidated salary against the wage order; overtime was paid monthly; the rest days claim lacked evidence; the certificate of service had been dealt with by the trial magistrate and was not a live appellate issue.

p. 12

Legal principles established

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  • In a complaint of unfair termination, the burden of proving that unfair termination occurred rests on the employee, while the burden of justifying the grounds for termination rests on the employer
  • The employee's burden is discharged by establishing a prima facie case; thereafter the employer assumes the burden under sections 43(1), 45(2) and 47(5) to justify the reason and prove fair procedure
  • Employment claims are civil and the standard of proof is on a balance of probabilities, not beyond reasonable doubt, even where criminal-type misconduct is alleged
  • A party who failed to plead an issue at the lower court cannot raise the unpleaded issue as a ground of appeal
  • Grounds of appeal must flow from the pleadings and evidence before the trial court; parties on appeal are bound by their pleadings below
  • The reasonableness test for dismissal (band of reasonableness) applies in assessing substantive fairness

Court orders

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  1. 1.The appeal is dismissed as without merit
  2. 2.The judgment and decree of Hon. Z.J. Nyakundi (SPM) delivered on 23rd February 2023 in Butali CMELRC No. 4 of 2020 is upheld
  3. 3.Each party to bear own costs in the appeal

Authorities

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Legislation

  • Employment Actsection 43(1)
  • Employment Actsection 45(2), 45(4)(b), 45(5)
  • Employment Actsection 47(5)
  • Employment Actsection 41(1) and (2)
  • Employment Actsection 44(3), (4)(c)/(G)
  • Employment Actsection 49
  • Employment Actsection 51
  • Weights and Measures Act(referred to generally on calibration requirements)

Cases cited (10)

  • Selle and another v Associated Motor Boat Company Ltd & others
    [1968] EA 123
  • David Kahuruka Gitau & Another v Nancy Ann Wathithi Gatu & Another
    Nyeri HCCA No. 43 of 2013
  • Galgalo Jarso Jillo v Agricultural Finance Corporation
    (2021) eKLR
  • Josephine M. Ndungu & others v Plan International Inc
    (2019) eKLR
  • Edwin Mukhwana Lumanyasi v West Kenya Sugar Company Limited
    Kakamega ELRC Appeal No. 22 of 2023
  • Walter Ogal Anuro v Teachers Service Commission
  • Alphonce Machanga Mwachanua v Operation 680 Limited
    (2013) eKLR
  • Nicholas Muasya Kyula v Farmchem Ltd
    [2012] eKLR
  • James Kabengi Mugo v Syngenta East Africa Limited
    [2013] eKLR
  • British Leyland UK LTD v Swift
On appeal from
Butali Chief Magistrate's Court (CMELRC)
CMELRC No. 4 of 2020
Jurisdiction invoked
First appellate jurisdiction over the subordinate court under the Employment and Labour Relations Court Act (appeal from Butali CMELRC No. 4 of 2020)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (10)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Dungani v West Kenya Sugar Company Limited (Employment and Labour Relations Appeal 12 of 2023) [2024] KEELRC 172 (KLR)", Case Analysis (2024). ELRC Appeal (Kakamega), appeal from Butali CMELRC No. 4 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/172/eng@2024-02-08

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