Francis Ndirangu v Nakumatt Holdings Limited [2016] eKLR

Kenya Law

Automated Summary

Key Facts

Francis Ndirangu was employed by Nakumatt Holdings Limited from 2002 as a shop assistant and became a supervisor in 2011. He was dismissed in May 2013 for alleged theft of four bundles of cigarettes. Ndirangu claimed the items were left unattended while assisting a customer and hidden to avoid blocking the gangway. The court found the termination unfair due to the respondent's failure to provide sufficient evidence, leading to a 7-month compensation and a month's notice.

Issues

  • The court assessed whether the termination of the claimant's employment for alleged theft of company property was lawful, considering the disciplinary procedures followed and the sufficiency of evidence presented by the respondent.
  • The court evaluated whether the respondent provided credible evidence to substantiate the claim of theft, noting that key witnesses (e.g., Mr. Hassan or the Head of Security) were not called to testify, leaving the allegations unverified.

Holdings

  • The Court awards one month's basic salary in lieu of notice of termination to the claimant.
  • The Court awards the claimant 7 months basic salary as compensation for unfair termination, finding the termination unjustifiable and invalid due to insufficient evidence of theft.
  • The respondent is ordered to issue the claimant with a certificate of service.

Remedies

  • The respondent shall issue the claimant with a certificate of service
  • One month's basic salary in lieu of notice of termination
  • 7 months basic salary as compensation for unfair termination

Legal Principles

The court applied the reasonable employer standard to assess the fairness of the termination. It held that an employer's decision to dismiss must be measured against what a reasonable employer would do, considering the act in question. Since the respondent failed to provide evidence from key witnesses (Hassan or the Head of Security) to substantiate the theft allegations, the court concluded the termination was unjustified and unfair.

Judge Name

Abuodha J. N.

Passage Text

  • It was not clear to the Court whether there was an attempt by the claimant to steal the cigarettes in issue. The explanation offered by the claimant was plausible and required the respondent to call evidence to the contrary, especially the evidence of Mr. Hassan or the Head of Security. This did not happen.
  • The Court finds that the claimant's termination was for unjustifiable and invalid reasons hence unfair. The Court therefore awards him 7 months basic salary as compensation for unfair termination. The Court further awards one month's basic salary in lieu of notice of termination.