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ELRCPartially AllowedCause No. 14 of 1996· [2002] KEELRC 14 (KLR)

KENYA ELECTRICAL TRADES & ALLIED WORKERS’ UNION v KENYA POWER & LIGHTING CO. LTD [2002] KEELRC 14 (KLR)

Industrial Court of Kenya
8 October 2002
1,526 words in judgment
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The bottom line

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What this practically means

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Executive summary

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This Industrial Court award determined a trade dispute reported to the Minister for Labour under Section 4 of the Trade Disputes Act, Cap. 234, concerning the alleged wrongful dismissal of Gilbert Oduori, a general worker employed by Kenya Power & Lighting Co. Ltd since 1978. The grievant was terminated on 26th September 1988 on disciplinary grounds for gross misconduct, namely theft of an Issue Note and a cable and obtaining Company materials worth Kshs.4,428.20 by false pretences. The Union sought reinstatement without loss of salary and back benefits, contending no proper enquiry was conducted; the Company maintained the grievant committed the offences. The Minister's investigator had found the accusation of false pretences unproved and termination harsh, recommending four months' salary compensation, which the Company rejected. After hearing the grievant and four Company witnesses, the Court found the Company's evidence on the reasons for termination completely contradictory - notably the team leader's claim to have witnessed the theft without intervening - and accepted the Investigator's findings. Reinstatement was refused because fourteen years had elapsed. The Court, with both members concurring, awarded that the disciplinary termination be reduced to normal termination of service, with full terminal benefits including Provident Fund contributions under the applicable collective agreement, plus compensation of ten months' salary for loss of employment. Judgment was delivered at Nairobi on 8th October 2002 by Charles P. Chemmuttut, Judge. No costs order was recorded.

Key legal issues

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01

Whether the grievant was guilty of the misconduct alleged

Holding

The court found the accusations of theft and false pretences unproved, adopting the Minister's investigator's findings

Reasoning

The grievant consistently denied stealing the Issue Note and cable, while the Company witnesses' accounts conflicted with each other and with the stated grounds of termination. The team leader, in charge of materials, did nothing when he allegedly saw the theft. The court found the evidence on the reasons for termination completely contradictory and therefore accepted the Investigator's finding that the accusation of obtaining materials by false pretences was not proved.

p. 2
02

Whether termination after an unproved accusation was harsh

Holding

Termination on disciplinary grounds was unjustified and was reduced to normal termination

Reasoning

Given that the misconduct was not proved and that the grievant had served the Company for about ten years, the court accepted the Investigator's recommendation that termination was harsh. However, because fourteen years had elapsed since termination, reinstatement was no longer feasible, and the appropriate remedy was compensation together with full terminal benefits under the applicable collective agreement.

p. 4

Legal principles established

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  • Where the employer's evidence on the reasons for termination is contradictory and the accusation of theft/false pretences is not proved, termination on disciplinary grounds is unjustified and should be treated as normal termination with full terminal benefits and compensation
  • An employee unjustly terminated on disciplinary grounds long before the hearing may be denied reinstatement but awarded compensation for loss of employment

Court orders

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  1. 1.The termination of the grievant on disciplinary grounds be reduced to normal termination of service
  2. 2.The grievant be paid all his terminal benefits, including his own and the Company's contributions to the Provident Fund Scheme, in terms of the parties' collective agreement in force at the material time
  3. 3.The grievant be paid compensation equivalent to ten (10) months' salary for loss of employment
Jurisdiction invoked
Trade Disputes Act, Cap. 234 (dispute reported to the Minister for Labour under Section 4 and referred for determination)

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, "KENYA ELECTRICAL TRADES & ALLIED WORKERS’ UNION v KENYA POWER & LIGHTING CO. LTD [2002] KEELRC 14 (KLR)", Case Analysis (2002). Cause No. 14 of 1996. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2002/14/eng@2002-10-08

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