Inda v Kentaste Products Limited (Appeal E098 of 2023) [2024] KEELRC 394 (KLR) (22 February 2024) (Judgment)

Kenya Law

Automated Summary

Key Facts

The case involves an employment dispute where the appellant, Jeckonia Odiwa Inda, was dismissed by Kentaste Products Limited in 2019 for alleged theft of 600 coconuts. The respondent claimed the dismissal followed due process under the Employment Act, 2007, citing gross misconduct and internal investigations. The appellant argued the termination was unfair, alleging insufficient evidence and procedural flaws. The court affirmed the lower court's judgment, concluding the dismissal was justified under Section 41 of the Act and that the employer met the required standard of proof (balance of probabilities). The appeal was dismissed, with no orders on costs.

Issues

  • Whether the respondent's termination of the appellant's employment on 18 November 2019 was fair under Section 41 of the Employment Act, 2007, given the alleged theft of 600 coconuts and the procedural steps taken by the employer.
  • Whether the disciplinary procedures followed by the respondent (show cause notice, disciplinary hearing) complied with the statutory requirements for procedural fairness under the Employment Act, particularly the adequacy of time provided for the appellant to prepare his defense.
  • Whether the respondent proved the appellant's misconduct on a balance of probabilities as required by Section 43 of the Employment Act, considering the discrepancy between the alleged 600 missing coconuts and the internal investigation finding of 400 missing coconuts.
  • Whether the appellant's claims for compensation, notice pay, service pay, unpaid public holidays, and overtime for 5 years were valid under the Employment Act, given that the termination was deemed fair and the evidence submitted by both parties.

Holdings

  • The claims for compensation (Kshs. 500,000), notice pay (Kshs. 25,000), and service pay (Kshs. 75,000) were dismissed. The court found no substantive justification for these claims, as the respondent's records showed the appellant had taken annual leave and the alleged losses were unverified.
  • The court affirmed the learned magistrate's findings that the respondent conducted a proper investigation and justified the summary dismissal of the appellant for gross misconduct (theft of 600 coconuts). The termination was deemed fair under Section 41 of the Employment Act, 2007, as the employer acted on a genuine belief in misconduct and followed procedural fairness.
  • The court directed the appellant to collect his Certificate of Service within 14 days, as the respondent confirmed it was ready for pickup upon clearance. No further action was required on this claim.
  • The appeal was dismissed as without merit. The court found no errors in the trial court's judgment and upheld the decision that the appellant failed to demonstrate procedural unfairness or substantive grounds for overturning the dismissal.

Remedies

  • The appeal was dismissed as without merit, with no orders on costs. The court affirmed the trial court's findings that the termination was fair and the other claims were not justified (paragraph 29).
  • The court affirmed the trial court's order that the appellant collect his Certificate of Service within 14 days as per paragraph 28 of the judgment.

Legal Principles

  • The court clarified that in cases of gross misconduct, the employer need only establish a genuine belief in the misconduct on a balance of probabilities. This standard is lower than criminal proof and aligns with the statutory requirements for procedural fairness under Sections 41 and 44 of the Employment Act.
  • The court emphasized that under Section 43 of the Employment Act, the onus is on the employer to prove the reasons for termination. If the employer fails to do so, the termination is deemed unfair. The standard of proof required is a balance of probabilities, not beyond reasonable doubt as in criminal proceedings.

Precedent Name

  • Walter Ogal Anuro v Teachers Service Commission [2013] eKLR
  • Matsesho v Newton (Cause 9 of 2019) [2022] KEELRC 1554 (KLR)
  • Kenya Power & Lighting Company Limited v Aggrey Lukorito Wasike [2017] eKLR

Cited Statute

Employment Act, 2007

Judge Name

M MBARÚ

Passage Text

  • Accordingly, the findings by the learned magistrate are sound and hereby affirmed. The appeal is without merit and is hereby dismissed. No orders on costs.
  • Under Section 43 of the Act, the onus is on an employer to prove the reason or reasons for the termination, failing which the termination shall be deemed to be unfair. The test is, however, a partly subjective one in that all an employer is required to prove are the reasons that he 'genuinely believed to exist,' causing him to terminate the employee's services.
  • The learned Judge was wrong to find that the termination was unfair for want of valid reasons. There were.