Mwangi v East African Breweries Limited (Cause 993 of 2014) [2024] KEELRC 13462 (KLR) (13 December 2024) (Judgment)

Kenya Law

Automated Summary

Key Facts

The court ruled that Emily Mwangi's termination by East African Breweries Limited (EABL) was fair. EABL terminated her employment in March 2014 due to gross misconduct involving falsification of PDA and vehicle movement reports, which showed inconsistencies in her location during work calls. Mwangi did not dispute the existence of these discrepancies and failed to follow the required BCP procedure for PDA malfunctions. The court found EABL followed fair procedures by issuing a show cause letter, allowing a disciplinary hearing, and providing a reasonable response timeframe. Mwangi's claims of constitutional rights violations and unfair termination were dismissed as unsubstantiated.

Issues

  • The court assessed if the Respondent violated the Claimant's constitutional rights under articles 27, 35, 41, 47, and 50 of the Constitution, particularly regarding fair administrative processes and labor rights.
  • The court examined whether the termination of the Claimant's employment by East African Breweries Limited was unfair and unlawful, considering the grounds of gross misconduct and procedural fairness.
  • The court determined if the Claimant was entitled to the requested remedies, including compensation for unfair termination, severance pay, and other damages outlined in her prayer.

Holdings

  • The court concluded that the Claimant's prayers for compensation, severance pay, and other reliefs were without merit. The Claimant failed to prove entitlement to these reliefs, and the court found no basis for awarding damages or other remedies as requested.
  • The court dismissed the Claimant's allegations of constitutional rights violations under Articles 27, 35, 41, 47, and 50 of the Constitution, noting that the Claimant did not precisely illustrate how these rights were breached. The court emphasized that employment termination issues are adequately addressed by the Employment Act, and no independent constitutional violation was demonstrated.
  • The court found that the Claimant's termination was both substantively and procedurally fair, as the Respondent had reasonable and valid grounds for dismissal due to gross misconduct involving falsification of callage reports and inconsistencies between PDA and vehicle tracking data. The termination process adhered to the Employment Act's requirements, and the Claimant failed to demonstrate procedural unfairness or constitutional rights violations.

Remedies

The claim was dismissed with costs

Legal Principles

  • The court evaluated whether the employer followed fair procedures, including providing the employee with a show cause letter, opportunity to respond, and disciplinary hearing as mandated by section 41 of the Employment Act.
  • The court applied proportionality principles to assess whether the disciplinary action (termination for falsification of reports) was reasonable and justified in the circumstances, referencing cases like Leon Yang Wang v. Equity Bank.
  • The employer bears the burden of proving the validity and fairness of termination under section 47(5) of the Employment Act. The court emphasized that if the employer fails to meet this burden, the termination is deemed unfair.

Precedent Name

  • Leon Yang Wang v Equity Bank [2023] eKLR
  • Oyatsi v Judicial Service Commission (Petition E11 of 2021) (2022) KEELRC 3 (KLR)
  • Agnes Ogandi v KETRACO (2016) eKLR
  • Jane Wanja Muthara v EACC ELRC Cause No. 722 of 2015
  • Energy Regulatory Commission v John Sigura Otido (Civil Appeal 417 of 2019) [2021] KECA 1060 (KLR)
  • Otieno v University of Nairobi & another (Miscellaneous Application E130 of 2023) (2024) KEELRC 970 (KLR)
  • Walter Ogal Anuro v Teachers Service Commission (Cause 955 of 2011) [2013] KEELRC 386 (KLR)
  • New Kenya Co-operative Creomeries v Sigei (Appeal E002 of 2022) (2024) KEELRC 27 (KLR)
  • Rita Gakii Gitobu v Telkom Kenya Limited (2014) eKLR
  • Johnson Ngugi v East Africa Breweries Limited (Cause 991 of 2014) [2019] KEELRC 1238 (KLR)
  • Joseph Nzioka v Smart Coatings Limited (2017) eKLR
  • Pius Machafu Isindu v Lavington Security Guards Limited (2017) eKLR
  • Howard Andrew Nyerere v Kenya Airways Limited (2014) eKLR

Cited Statute

  • Constitution of Kenya 2010
  • Employment Act

Judge Name

Nj. Abuodha Nelson Jorum

Passage Text

  • In conclusion this court finds that the Claimant was both substantively and procedurally terminated by the Respondent. Hence the termination is considered fair both in terms of reasons and procedure followed.
  • The court notes that an employer under section 43 of the Employment Act can terminate the services of an employee for reasons it genuinely believed to exist at the time of termination. In this case the issue of the variance was not disputed by the Claimant and she did not seek approval to use BCP as required.
  • From the foregoing and in conclusion the Claimant's claim is found without merit and the same is hereby dismissed with costs.