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ELRCDismissedCause No 1792 of 2017· [2024] KEELRC 2812 (KLR)

Adrian v Co-operative Bank of Kenya Limited (Cause 1792 of 2017) [2024] KEELRC 2812 (KLR)

Employment and Labour Relations Court
14 November 2024
4,477 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court upheld a bank teller's summary dismissal because his mishandling of customer funds destroyed the trust his job required.

What this practically means

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Executive summary

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The Claimant, a teller employed by the Respondent bank on a fixed-term contract and covered by a CBA, was summarily dismissed on 5th February 2016 following allegations that he diverted a customer's Kshs. 65,000 into his own account to recover a Sacco deposit, and that he negligently encashed a Kshs. 120,000 cheque from an account with insufficient funds without obtaining the customer's signature. He sued for a declaration that the dismissal was wrongful and unfair, reinstatement, payment of the balance of his contract, twelve months' salary as compensation, and damages for physical and emotional harm from alleged inhumane treatment. The court framed two issues: whether the dismissal was wrongful/unfair, and whether the reliefs should issue. On procedure, it held that all three ingredients of section 41 of the Employment Act - notification, hearing and consideration - were satisfied, making the dismissal procedurally fair. On substance, applying Laws v London Chronicle and Mckinley v B.C. Tel, it found the infractions so grave that they breached the duty of trust and confidence, giving the Respondent valid and fair reasons to dismiss. The claim for emotional damages failed because the Claimant never anchored it on workplace harassment and produced no medical evidence of post-traumatic disorder. The entire claim was dismissed, with each party bearing its own costs.

Key legal issues

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01

Whether the summary dismissal was procedurally fair under section 41 of the Employment Act

Holding

The dismissal was procedurally fair; all three ingredients of section 41 (notification, hearing, consideration) were satisfied

Reasoning

The show cause letter clearly set out the accusations; the Claimant responded in detail; the invitation letter of 13th January 2016 informed him of the charges and of his right of accompaniment per section 41; he attended and was heard before the decision. The court could not identify any missing ingredient of the section 41 process.

p. 7
02

Whether the Respondent had valid and fair reasons for the summary dismissal (substantive fairness under sections 43, 44 and 45)

Holding

Yes - the Claimant's conduct of diverting a customer's Kshs. 65,000 into his own account and his negligence over the Kshs. 120,000 encashment breached the duty of trust and confidence and justified summary dismissal

Reasoning

The Claimant did not deny depositing the customer's Kshs. 65,000 into his own account without authority, and failed to obtain the customer's signature for the Kshs. 120,000 withdrawal, amounting to negligence. Weighing the infractions, the banking industry context and the employment relationship, the conduct breached any reasonable employer's faith and the duty of trust and confidence.

p. 9
03

Whether the Claimant was entitled to damages for physical and emotional harm from alleged inhumane treatment

Holding

The claim failed for want of evidence; no medical documents supported the alleged post-traumatic disorder and the claim was not anchored on workplace harassment

Reasoning

The court acknowledged that workplace harassment, if proved, attracts damages, but noted the tragedy that the Claimant never expressly pleaded workplace harassment. He also adduced no medical documentation of the post-traumatic disorder he alleged, so the claim under that head necessarily failed.

p. 9

Legal principles established

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  • Procedural fairness under section 41 of the Employment Act has three ingredients: notification of the grounds, an adequate opportunity to be heard, and consideration of the representations before a final decision
  • An employee's misconduct falling within the catalogue of gross misconduct does not inherently justify summary dismissal unless it is so grave as to show abandonment of the employment relationship; the gravity and surrounding circumstances must be assessed
  • Workplace harassment, where claimed and proved, will attract damages assessed on the effect, type and length of the harassment, condonation by the employer, and the presence or absence of an anti-harassment policy

Court orders

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  1. 1.The Claimant's claim is dismissed in its entirety.
  2. 2.Each party to bear its own costs.

Authorities

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Legislation

  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 41
  • Employment Act, 2007Section 44 (including section 44[4])
  • Employment Act, 2007Section 43
  • Employment Act, 2007Section 47[5]
  • Collective Bargaining Agreement (Kenya Bankers Association / Banking Insurance and Finance Union [Kenya])Clause A5 (disciplinary procedure on grounds of misconduct)
  • Respondent's Human Resource Manual / Staff ManualSection 10.9 (sub-clauses vi, vii, viii, xv, xvii)
  • Respondent's Business Code of Conduct & Ethicsnot specified

Cases cited (3)

  • Pius Macha Isundu v Lavington Security Guards Limited
    [2017] eKLR
  • Laws v- London Chronicle Limited
    [1959] 2 All E.R. 285
  • Mckinley vs- B. C Tel
    [2001] 2 S.C.R 161
Jurisdiction invoked
Original employment and labour relations jurisdiction (trade dispute reported to the Ministry of Labour and conciliated; Employment and Labour Relations Court 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, "Adrian v Co-operative Bank of Kenya Limited (Cause 1792 of 2017) [2024] KEELRC 2812 (KLR)", Case Analysis (2024). Cause No 1792 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2812/eng@2024-11-14

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