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ELRCDismissedMemorandum of Claim dated 14th July 2023· [2024] KEELRC 2005 (KLR)

Lagat v Springboard Capital Limited (Cause E579 of 2023) [2024] KEELRC 2005 (KLR)

Employment and Labour Relations Court
1 August 2024
1,368 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Nairobi court upheld a manager's dismissal because he admitted work wasn't done properly and his employer followed fair disciplinary procedures.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from April 2019 and promoted to Business Development Manager earning a gross monthly salary of Kshs. 92,700/-, was placed on compulsory leave in June 2021 to facilitate an audit of his customer files following a suspected proxy funding incident. An audit revealed alleged anomalies including unprocedural authorization of agent payments, missing agent records, and breach of agency management procedures. He was issued a notice to show cause, attended a disciplinary hearing, and was terminated on 9th July 2021. He sued seeking a declaration that the termination was unlawful and unfair, one month's salary in lieu of notice (Kshs. 92,700/-), twelve months' compensation (Kshs. 1,112,400/-), service pay (Kshs. 135,000/-), costs and interest. He complained he had only two days to prepare, was denied access to the audit report, could not bring a witness or cross-examine the auditor, and the hearing lasted only 30 minutes. The Respondent maintained the dismissal was substantively and procedurally fair, that the Claimant was informed of his right to be accompanied, and that he failed to discharge his burden of proof. The court found the Claimant conceded the work was not done per policy guidelines and that his lapses justified dismissal for cause, with the process being systematic and lawful. The claim was dismissed with no order as to costs.

Key legal issues

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01

Substantive justification for termination

Holding

The Claimant's lapses and non-compliance with agency management procedures justified dismissal

Reasoning

The Respondent established repeated lapses in company procedures amounting to neglect of duty. The Claimant conceded the work was not done as required by policy guidelines, blaming agents under his supervision. Negligence in performing contractual duties warrants summary dismissal under section 44(4) of the Employment Act, as affirmed in Agnes Kavata Mbiti v Housing Finance Company Limited.

p. 3
02

Procedural fairness of the disciplinary process

Holding

The process was systematic and lawful; no unfair procedure was applied

Reasoning

The Respondent complied with section 41 of the Employment Act by issuing a notice to show cause, affording the Claimant an opportunity to respond, and informing him of his right to be accompanied by a fellow employee. The court accepted that the Respondent considered the Claimant's written and oral representations before concluding he was culpable.

p. 3
03

Burden of proof

Holding

The Claimant failed to discharge his burden under section 47 of the Employment Act

Reasoning

The Respondent argued, and the court accepted, that the Claimant did not prove the termination was unfair. His concession that the work was not done per policy guidelines undermined his case, leaving the Respondent's demonstration of valid reasons unchallenged.

p. 3

Legal principles established

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  • Termination of employment is justified where there is both substantive justification and procedural fairness

Court orders

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  1. 1.Claim dismissed
  2. 2.No order as to costs

Authorities

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Legislation

  • Employment Actsection 9
  • Employment Actsection 10
  • Employment Actsection 41
  • Employment Actsection 44(4)
  • Employment Actsection 45
  • Employment Actsection 47
  • Constitution of KenyaArticle 41

Cases cited (2)

  • Walter Ogal Anuro v Teachers Service Commission
    [2013] eKLR
  • Agnes Kavata Mbiti v Housing Finance Company Limited
    [2017] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment and labour relations claims (Article 162(2) constitutional jurisdiction inferred from the claim's nature; not expressly cited in the extract)

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, "Lagat v Springboard Capital Limited (Cause E579 of 2023) [2024] KEELRC 2005 (KLR)", Case Analysis (2024). Memorandum of Claim dated 14th July 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2005/eng@2024-08-01

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