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ELRCDismissedAppeal from Mombasa CM ELRC 360 of 2021· [2024] KEELRC 394 (KLR)

Inda v Kentaste Products Limited (Appeal E098 of 2023) [2024] KEELRC 394 (KLR)

Employment and Labour Relations Court
22 February 2024
2,339 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court upheld a driver's summary dismissal for missing coconuts, confirming employers only need to prove misconduct on a balance of probabilities, not beyond reasonable doubt.

What this practically means

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Mombasa against the judgment of the magistrates' court in CM ELRC 360 of 2021 delivered on 16 August 2023, which dismissed the appellant's claim for unfair termination and attendant dues, save for directing collection of his certificate of service. The appellant, a truck driver engaged from January 2015 and transferred to the respondent on 26 June 2019, was issued a notice to show cause on 15 November 2019 over the alleged offoading of 600 nuts on 29 October 2019, responded on 16 November 2019, attended a disciplinary hearing on 19 November 2019, and was summarily dismissed. The respondent did not participate in the appeal. The court, sitting as a first appeal, re-evaluated the record and held that the summary dismissal was substantively justified: the PCN from Mafisini showed 12,250 nuts collected against 11,650 received, indicating 600 missing, and the appellant failed to render a proper account. Procedural fairness was satisfied; disciplinary proceedings under Section 41(2) are not criminal trials and require proof only on a balance of probabilities, a position supported by the Court of Appeal decision in Kenya Power & Lighting Co Ltd v Aggrey Lukorito Wasike. The claims for service pay, public holiday pay and overtime were analysed on their merits under Section 18(4) and all failed: the contract provided for health insurance and provident fund; the holiday claim was not particularised; and leave records contradicted the overtime claim. The appeal was dismissed with no orders on costs.

Key legal issues

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01

Substantive justification for summary dismissal

Holding

The dismissal was justified; the appellant engaged in gross misconduct of theft/misappropriation of 600 nuts and failed to render a proper account

Reasoning

The PCN from Mafisini indicated 12,250 nuts but only 11,650 were received at the factory, indicating 600 missing nuts. The notice to show cause was issued to the appellant, not the quality controllers or loaders; shifting blame to others did not aid his case. The respondent conducted investigations, filed work records and returns demonstrating missing coconuts from the tractor allocated to the appellant, and took him through due process before finding him culpable.

p. 4
02

Procedural fairness under Section 41 of the Employment Act

Holding

The appellant was accorded procedural fairness; the standard of proof is on a balance of probabilities, not beyond reasonable doubt

Reasoning

The appellant was issued a notice to show cause, responded to it on 16 November 2019, and was invited to a disciplinary hearing on 19 November 2019 where he was allowed to attend with another employee of his choice. Section 44(4) with Section 41(2) permits an employer to require an employee suspected of gross misconduct to respond to allegations, and proof is on a balance of probabilities.

p. 3
03

Service pay claim

Holding

The claim for service pay fails because the contract made provision for health insurance and provident fund, and service pay lies only where statutory dues are unpaid

Reasoning

Under Sections 35(5) and (6) of the Act, service pay is due where the employer fails to pay statutory dues, not merely for years of service. The appellant's contract of 11 May 2015 and the transfer letter of 26 June 2019 contained clauses 10 and 11 providing for health insurance and provident fund, so he cannot justify a claim for service pay.

p. 4
04

Public holiday and overtime claims

Holding

Both claims fail; the holiday claim was not particularised and the overtime claim was contradicted by the leave records showing the appellant took annual leave

Reasoning

A claim for public holiday pay must particularise how such days accrued. On overtime, the claim was for 3 hours daily for 365 days over 5 years, but the respondent filed work records showing the appellant took various days of annual leave between 2015 and 2019, so a claim for overtime for every day of 5 years is not honest and not justified.

p. 5

Legal principles established

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  • Disciplinary proceedings under Section 41(2) of the Employment Act are not criminal proceedings; the employer need only establish misconduct on a balance of probabilities
  • All an employer needs do under Section 41 is conduct investigations, give the employee a reasonable opportunity to respond after a reasonable period, and take a decision with notice
  • Service pay is due under Section 35(5) and (6) of the Employment Act where the employer fails to pay statutory dues, not merely for years of service
  • A claim for public holiday pay must be particularised; it cannot be justified through a general claim
  • Even where summary dismissal is justified, the court must analyse the monetary claims on their merits as required by Section 18(4) of the Act

Court orders

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  1. 1.The findings by the learned magistrate are affirmed
  2. 2.The appeal is dismissed
  3. 3.No orders on costs

Authorities

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Legislation

  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 41(2)
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 44(4)
  • Employment Act, 2007Section 35(5) and (6)
  • Employment Act, 2007Section 18(4)

Cases cited (3)

  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Kenya Power & Lighting Company Limited v Aggrey Lukorito Wasike
    [2017] eKLR
  • Matsesho v Newton
    (Cause 9 of 2019) [2022] KEELRC 1554 (KLR) (29 July 2022)
On appeal from
Chief Magistrate's Court (ELRC), Mombasa
CM ELRC 360 of 2021
Jurisdiction invoked
First appeal to the Employment and Labour Relations Court from the magistrates' court (the court notes it may re-evaluate the evidence as a first appeal)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Inda v Kentaste Products Limited (Appeal E098 of 2023) [2024] KEELRC 394 (KLR)", Case Analysis (2024). Appeal from Mombasa CM ELRC 360 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/394/eng@2024-02-22

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