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ELRCPartially AllowedCause No E363 of 2021· [2024] KEELRC 1969 (KLR)

Gathira v Rwathia Suppliers Ltd & 2 others (Cause E363 of 2021) [2024] KEELRC 1969 (KLR)

Employment and Labour Relations Court
26 July 2024
3,452 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that an employer cannot simply claim an employee absconded—it must trace the worker and hear their side before termination.

What this practically means

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Executive summary

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The Claimant, employed by the 1st Respondent as a Senior Stock Clerk from June 2017, was arrested on 14th September 2018 over a stock variance of Kshs 467,676/=, released on police bond on 16th September 2018, and later charged with stealing by servant in Criminal Case No. 332 of 2019 at the City Court, where he was acquitted. He claimed that when he reported to work on 17th September 2018 he was told he was no longer an employee. The 1st Respondent maintained that he absconded duty and that it reported the matter to the County Labour Office by letter dated 24th September 2018. The 2nd and 3rd Respondents did not participate. The Court framed three issues: whether the Claimant absconded or was unfairly terminated; whether his prosecution was malicious; and entitlement to reliefs. Applying Sections 41, 43, 44(4)(a) and 45 of the Employment Act and following Mary Mumbi Kariuki v Director, Pamoja Women Development Programme, the Court held that the employer failed to prove abscondment because it took no reasonable steps to trace the Claimant or require him to explain his absence, and found the termination unfair. On the malicious prosecution claim, applying George Masinde Murunga and Nzoia Sugar Company Ltd v Fungututi, the Court found reasonable and probable cause for the police report and no proof of malice, so that claim failed. The Court declared the termination unfair and unlawful and awarded notice pay of Kshs 36,800/=, August 2018 salary of Kshs 36,800/=, Kshs 17,173/= for 14 days worked in September, compensatory damages of Kshs 184,000/= (five months' gross salary) and leave pay of Kshs 17,173/=, totalling Kshs 291,946/= with interest at court rates, plus costs of the suit. Special and general damages for malicious prosecution were declined.

Key legal issues

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01

Whether the Claimant absconded duty or was unfairly terminated

Holding

The Respondent failed to prove abscondment; the Claimant was unfairly terminated within the meaning of Sections 41, 43 and 45 of the Employment Act

Reasoning

The employer only notified the County Labour Office of the alleged abscondment but took no steps to trace the Claimant or require him to show cause for his absence. Absence from work without permission is a ground for summary dismissal under Section 44(4)(a), which the employer could have invoked after notice. Alleging abscondment without proving the absence or the steps taken to ascertain the employee's whereabouts was insufficient to discharge the employer's statutory burden of proving a valid and fair termination.

p. 5
02

Whether the Claimant's prosecution was malicious

Holding

Malicious prosecution not established; there was reasonable and probable cause for the police report and no proof of malice or spite

Reasoning

Elements of malicious prosecution were drawn from George Masinde Murunga v Attorney General. Elements (1) and (2) - institution and termination in the Claimant's favour - were undisputed, but the Claimant had to prove lack of reasonable and probable cause and malice. There was a common-ground stock variance and the Claimant, as Senior Stock Clerk, was responsible for stock, so the report to police was justified. No evidence showed hatred or spite, and insufficient evidence supporting the charge does not by itself impute malice.

p. 7
03

Entitlement to reliefs

Holding

Notice pay, August 2018 salary, 14 days' September 2018 salary, five months' compensatory damages and leave pay awarded; malicious prosecution damages declined

Reasoning

Having found unfair termination, the Court awarded one month's notice pay and five months' compensatory damages, factoring in the short length of employment (June 2017 to September 2018) and circumstances of exit. August 2018 salary was unpaid as confirmed by RW1, and 14 days' salary for September was due. Leave pay for eight months of 2018 was awarded because the employer failed to avail leave records under Section 74(1)(f) of the Employment Act.

p. 7

Legal principles established

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  • Where an employee allegedly absconds, the employer must take reasonable steps to ascertain the employee's whereabouts and give him an opportunity to explain his absence before terminating employment
  • The burden rests on the employer to prove the reasons for termination; failure renders the termination unfair
  • Acquittal in a criminal case is not a sufficient basis for a claim of malicious prosecution; spite or ill-will must be proved

Court orders

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  1. 1.A declaration that the termination of the Claimant's employment was unfair and unlawful
  2. 2.One month's salary in lieu of notice of Kshs 36,800/= awarded to the Claimant
  3. 3.Salary for August 2018 of Kshs 36,800/= awarded
  4. 4.Salary for September 2018 (14 days) of Kshs 17,173/= awarded
  5. 5.Compensatory damages of Kshs 184,000.00 being five months' gross salary awarded
  6. 6.Leave pay of Kshs 17,173/= for eight months in 2018 awarded
  7. 7.Total award of Kshs 291,946.00 with interest at court rates from the date of Judgment until payment in full
  8. 8.The Claimant to have the costs of the suit

Authorities

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Legislation

  • Employment ActSection 41
  • Employment ActSections 43(1) and 45(2)(a) and (b)
  • Employment ActSection 44(4)(a)
  • Employment Act, 2007Section 74(1)(f)
  • Penal CodeSection 281
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48

Cases cited (5)

  • Naqvi Syed Qmar v Paramount Bank Limited & another
    (2015)
  • Attorney General & another v Andrew Maina Githinji & another
    (2016) eKLR
  • Mary Mumbi Kariuki v Director, Pamoja Women Development Programme
    [2015] eKLR
  • George Masinde Murunga v Attorney General
    [1979] eKLR
  • Nzoia Sugar Company Ltd v Fungututi
    [1988] KLR 399
Jurisdiction invoked
Employment and labour relations jurisdiction of the Employment and Labour Relations Court (first-instance Memorandum of Claim under the Employment Act, 2007); judgment delivered under Article 159(2)(d) and Article 48 of the Constitution and Section 1B of the Civil Procedure Act

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, "Gathira v Rwathia Suppliers Ltd & 2 others (Cause E363 of 2021) [2024] KEELRC 1969 (KLR)", Case Analysis (2024). Cause No E363 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1969/eng@2024-07-26

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