Amayo v Premier Credit Ltd (Cause E037 of 2023) [2024] KEELRC 2269 (KLR)
The bottom line
#A Kenyan court upheld a bank employee's summary dismissal for failing to verify forged loan documents, confirming delegation doesn't shift responsibility.
What this practically means
#Executive summary
#Key legal issues
#Whether the dismissal was procedurally fair under section 41 of the Employment Act
Procedurally fair - reasons for contemplated dismissal were communicated and a forum to make representations was availed
The court examined the correspondence produced by the Respondent, notably an email dated 5th September 2022 inviting the Claimant to a review of loan accounts before the disciplinary committee, which also informed him that his oversight had occasioned loss and could result in termination. It found the reasons for contemplated summary dismissal were communicated and a forum to make representations availed, satisfying the basic tenets of procedural fairness.
Whether the dismissal was substantively fair under sections 43, 45 and 47(5) of the Employment Act
Substantively fair - the reasons for dismissal were proven on a balance of probabilities
It was not in dispute that Kshs 600,000 was lost to a fraudster, that verification of loan applicants was the Claimant's duty, and that the loan documents were forgeries. The Claimant's defence of customary delegation was unproven, and he failed to call the sales agent or the university administrator to substantiate his alleged verification. Warning letters went uncontroverted, and careless performance of duty under section 44(4)(c) justified summary dismissal.
Whether the Claimant is entitled to the remedies sought
No - all reliefs failed as the dismissal was found fair and justified
Having found the dismissal both procedurally and substantively fair, the claims for compensation and aggravated damages became moot. Because the grounds for summary dismissal were justified, the prayer for pay in lieu of notice also failed. The entire suit was accordingly dismissed with no orders as to costs.
Legal principles established
#- Even in instances of summary dismissal the employee remains entitled to a hearing under section 41(2) of the Employment Act
- Before summarily dismissing an employee, the employer must hear and consider any representations by the employee before making the decision to dismiss
- Careless and improper performance of duties under contract qualifies as a reason for summary dismissal under section 44(4)(c) of the Employment Act
- A party who alleges a fact bears the burden of proving it under section 109 of the Evidence Act, and an employee who delegates a duty bears ultimate responsibility for its outcome
Court orders
#- 1.The suit is dismissed in its entirety
- 2.No orders as to costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Amayo v Premier Credit Ltd (Cause E037 of 2023) [2024] KEELRC 2269 (KLR)", Case Analysis (2024). Cause No E037 of 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2269/eng@2024-09-23
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.