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ELRCPartially Allowed· [2024] KEELRC 1758 (KLR)

Nyakundi v Sasini Coffee House Limited (Employment and Labour Relations Cause 122 of 2017) [2024] KEELRC 1758 (KLR)

Employment and Labour Relations Court
28 June 2024
4,930 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~20 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled a cashier's dismissal unfair because her employer could not prove the Kshs 3,100 deficit or show she got a proper hearing.

What this practically means

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Executive summary

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The Claimant, a cashier employed from 7th January 2010 at a monthly salary of Kshs. 28,427, was summarily dismissed on 8th July 2016 over an alleged unexplained deficit of Kshs. 3,100 on the banking of 24th June 2016. She sought a declaration of unlawful termination, twelve months' salary as compensation, notice pay, July 2012 salary, service gratuity, leave pay, interest and a certificate of service. The Respondent maintained the dismissal was for gross misconduct, that she admitted receiving the cash from waiters without accounting for it, and that she was heard. The Court framed two issues: whether the employment was unfairly terminated and whether remedies were due. It held the Claimant discharged her initial burden under Section 47(5). On substantive fairness, the Respondent failed to produce the cashier periodic sales printout, the shift summary, the waiters' reports, or to call the two waiters, despite witnesses asserting these documents were before the Court; the reason for dismissal was therefore not established. On procedure, no minutes of the alleged disciplinary hearing were tendered, and a mere meeting not expressly designated a disciplinary hearing cannot be one, applying Standard Group Limited v Jenny Luesby. The dismissal was both substantively and procedurally unfair. The Court awarded one month's notice pay, July 2012 salary, and compensation of seven months' gross salary (Kshs. 198,994/-), totaling Kshs. 255,849.66/-, with interest at court rates and a certificate of service within 30 days. Service pay was declined on NSSF membership grounds and the leave claim for want of evidence. The Respondent was ordered to bear the costs.

Key legal issues

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01

Substantive fairness of the summary dismissal

Holding

The dismissal was not substantively fair because the Respondent failed to prove the alleged cash deficit

Reasoning

The Respondent alleged a Kshs. 3,100 variance between the cashier periodic sales and shift summary, implicating two waiters' reports. It failed to produce the sales printout, shift summary, or the waiters' reports, and did not call the waiters as witnesses. The absence of this critical evidence meant the employer did not establish that the reason for dismissal existed.

p. 8
02

Procedural fairness under Section 41

Holding

The dismissal was procedurally unfair as no disciplinary hearing was proved

Reasoning

The Respondent alleged a disciplinary hearing on 29th and 30th June 2016 but tendered no minutes of it. Following Standard Group Limited v Jenny Luesby, the Court held that a mere meeting not expressly presented to the employee as a disciplinary hearing cannot be one. The employee was therefore not accorded the hearing and right of accompaniment contemplated by Section 41.

p. 8
03

Remedies — notice pay and July 2012 salary

Holding

Claimant entitled to notice pay under Section 35 and July 2012 salary; employer as record-keeper failed to controvert non-payment

Reasoning

The employment contract did not specify post-confirmation notice, so Section 35's one-month notice applied. The termination letter breakdown was held insufficient evidence of payment of notice pay. On July 2012 salary, the Respondent as keeper of employment records under Section 74 failed to produce evidence to controvert the Claimant's averment of non-payment.

p. 9
04

Compensation quantum under Section 49(1)(c)

Holding

7 months' gross salary awarded instead of the 12 months sought

Reasoning

The Court considered the dismissal without a hearing when legally required, the hurried manner of the dismissal process, and the length of service of six and a half years, arriving at 7 months' gross salary based on the June 2016 pay slip showing gross salary of Kshs. 28,427.83.

p. 9

Legal principles established

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  • The initial burden of proving unfair termination rests on the employee; the burden of justifying the grounds rests on the employer
  • A mere assertion by the employer that a reason existed does not discharge the Section 43 burden; documentary evidence must be produced
  • A mere meeting not expressly designated as a disciplinary hearing, and unminuted, does not amount to a disciplinary hearing under Section 41

Court orders

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  1. 1.A declaration that the dismissal of the Claimant from employment was unfair and unlawful
  2. 2.Payment of one month's salary in lieu of notice of Kshs. 28,427.83
  3. 3.Payment of salary for July 2012 of Kshs. 28,427.83
  4. 4.Compensation for unfair termination of Kshs. 198,994/- (7 months' gross salary at Kshs. 28,427.83), total award Kshs. 255,849.66/-
  5. 5.Issue of a Certificate of Service to the Claimant within 30 days of the Judgment
  6. 6.Interest on the monetary awards at Court rates from the date of judgment until payment in full
  7. 7.The Respondent shall bear the costs of the suit

Authorities

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Legislation

  • Employment Act 2007Section 45
  • Employment Act 2007Section 43
  • Employment Act 2007Section 41
  • Employment Act 2007Section 44
  • Employment Act 2007Section 47(5)
  • Employment Act 2007Section 49(1)(c)
  • Employment Act 2007Section 35(5) and 35(6)
  • Employment Act 2007Section 51
  • Employment Act 2007Section 74
  • Constitution of Kenya 2010Article 159(2)(d)
  • Constitution of Kenya 2010Article 48
  • Civil Procedure Act (Chapter 21)Section 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (8)

  • Naima Khamis vs Oxford University Press (E.A) Ltd
    [2017] eKLR
  • Godfrey Barasa Ochieng vs Security Guards Services Limited
    [2022] eKLR
  • Geofirey Gikonyo Mathu V Intex Construction Company Ltd
    [2017] eKLR
  • Benjamin Langwen vs National Environment Management Authority
    [2016] eKLR
  • Stephen Barasa Wandera vs Watchdog Limited
    Cause No. 1588 of 2014
  • Kenya Revenue Authority vs Menginya Salim Murgani
    [2010] eKLR
  • Standard Group Limited v Jenny Luesby
    [2018] eKLR
  • Kenfreight (E. A) Limited vs Benson K. Nguti
    [2016] eKLR
Jurisdiction invoked
Employment Act 2007 (Sections 41, 43, 44, 45, 47(5), 49(1)(c), 51) — first-instance employment claim

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, "Nyakundi v Sasini Coffee House Limited (Employment and Labour Relations Cause 122 of 2017) [2024] KEELRC 1758 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1758/eng@2024-06-28

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