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ELRCPartially AllowedAppeal No E127 of 2023· [2024] KEELRC 1480 (KLR)

SGA Security Solutions Limited v Mwale (Appeal E127 of 2023) [2024] KEELRC 1480 (KLR)

Employment and Labour Relations Court of Kenya
14 March 2024
1,978 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court ruled an employer fairly dismissed a security guard caught sleeping during a theft, overturning earlier awards of compensation and other dues.

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 a magistrates' court judgment of 31 October 2021 in Mombasa CMELR No. E768 of 2021, which had found unfair termination and awarded the respondent (a night security guard) compensation, notice pay, house allowance and untaken leave. The appellant employer appealed, contending the respondent was summarily dismissed for gross misconduct after sleeping on duty while client property was stolen, that the wage was consolidated, and that leave had been taken. The court re-evaluated the record as required on a first appeal. It held that Section 41 of the Employment Act was satisfied: the respondent was suspended with notice of a disciplinary hearing and appeared before shop stewards who lawfully represented him under Section 41(1), and he did not protest or request an employee of his choice. Relying on his admitted dozing off during which chairs were stolen, the court found a fundamental breach of contract under Section 44(3) justifying summary dismissal, applying the balance of probabilities rather than the criminal standard. The finding of unfair termination and the awards of compensation and notice pay were set aside. The house allowance award failed because the Kshs. 18,000 wage exceeded the due wage including 15% house allowance. The leave award failed because leave forms showed leave had been taken, making payment double payment. The appeal was allowed, the trial judgment set aside in its entirety, and each party ordered to bear its own costs, the court stressing that costs in employment claims are discretionary and should not issue as a matter of course.

Key legal issues

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01

Adequacy of the disciplinary process under Section 41 of the Employment Act

Holding

The process complied with Section 41; the shop stewards were properly present and the respondent did not protest or request another employee of his choice

Reasoning

The court held that Section 41 requires notice to attend a disciplinary hearing and the presence of a union representative or a person chosen by the employee. The respondent was suspended on 24 August 2021 with notice of a disciplinary hearing, and on 1 September 2021 appeared before shop stewards Geoffrey Nyamweya and Bernard Ondieki. He did not object to their presence or ask for more time to call a person of his choice, and the disciplinary record was unchallenged.

p. 4
02

Justification of summary dismissal for gross misconduct

Holding

Sleeping on duty during a theft constitutes a fundamental breach justifying summary dismissal under Section 44(3)

Reasoning

The respondent admitted dozing off while chairs were stolen from the premises he was guarding, and offered to be surcharged. Disciplinary proceedings apply the balance of probabilities, not the criminal standard of proof. Given the admission, the termination was justified and the trial court's finding of unfair termination was set aside, together with the awards of compensation and notice pay.

p. 4
03

House allowance claim

Holding

The wage of Kshs. 18,000 was consolidated and adequately compensated the respondent; no separate house allowance was due

Reasoning

The court computed the due wage for a night guard in Mombasa County as at 1 September 2021 at Kshs. 15,141.95, with a 15% house allowance of Kshs. 2,271.15, totalling Kshs. 17,412.15. Since the respondent earned Kshs. 18,000 per month, he was well compensated and no separate house allowance award was warranted.

p. 4
04

Payment in lieu of untaken leave

Holding

The award of untaken leave days was unjustified because leave records showed leave had been taken; payment would be double payment

Reasoning

The appellant filed leave request forms approved on 4 January 2021, 27 June 2020 and 15 May 2020. As the employer is the custodian of work records, the submitted leave sheets demonstrated that allocating payment instead of leave would amount to double payment, and the trial court's award was thereby undermined.

p. 4

Legal principles established

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  • A security guard found sleeping on duty during which theft occurs commits a fundamental breach of contract justifying summary dismissal under Section 44(3) of the Employment Act
  • Disciplinary proceedings are civil in nature and are determined on a balance of probabilities, not the criminal standard
  • A shop steward lawfully represents an employee at a disciplinary hearing under Section 41(1) of the Employment Act unless the employee seeks a specific employee of his choice
  • Costs in employment claims are discretionary and should not be awarded as a matter of course

Court orders

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  1. 1.Appeal allowed
  2. 2.Judgment in Mombasa CMELCR No. E768 of 2021 set aside in its entirety
  3. 3.Each party bears its own costs

Authorities

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Legislation

  • Employment Act, 2007Sections 41, 41(1), 41(2), 43, 44, 44(1), 44(3)
  • Employment and Labour Relations Court Act, 2011Section 3

Cases cited (3)

  • George Okello Munyolo v Unilever Kenya Limited
    [2019] eKLR
  • Walter Ogal Anuro v Teachers Service Commission
    [2011] eKLR
  • Anthony Mkala Chitavi v Malindi Water & Sewerage Company Limited
    [2013] eKLR
On appeal from
Magistrates' Court (ELRC), Mombasa
CMELR No. E768 of 2021
Jurisdiction invoked
First appeal from the magistrates' court in an employment and labour relations matter

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, "SGA Security Solutions Limited v Mwale (Appeal E127 of 2023) [2024] KEELRC 1480 (KLR)", Case Analysis (2024). Appeal No E127 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1480/eng@2024-03-14

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