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JudgmentPada Security & Alarm Systems Limited VS Ndimu Waningo Wanaswa13 min read

Pada Security & Alarm Systems Limited VS Ndimu Waningo Wanaswa

Employment and Labour Relations Court at Nairobi Employment and Labour Relations Court (ELRC) · · Jemimah Wanza Keli

Summary

The appellant appealed against a trial court judgment that found the respondent unlawfully and unfairly terminated from employment. The court determined that the trial court erred in finding the termination unlawful and unfair because the respondent failed to comply with section 41 of the Employment Act by not issuing notice to the respondent regarding termination on grounds of desertion. The court held that the respondent should have provided notice to the respondent to explain himself before termination, and the trial court's findings were consistent with binding precedent in Nyabiba v Apak Company Limited (2023) e KLR. The appeal was dismissed as the trial court did not err in law or fact regarding the termination being unlawful and unfair.

1. The Appellant herein dissatisfied with the Judgement and Decree of the Hon. Catherine Mburu Principal Magistrate made on 27th  March, 2024 in Kikuyu ELRC. Cause No. E024 of 2021 filed  a memorandum of appeal dated 15th April 2024 against the whole of the said Judgement and Decree  and sought the following Orders:-
(a) This Appeal be allowed and the Judgement of the lower Court be set aside.
(b) The Respondent do pay the costs of this appeal and of the Court below.

2. Grounds of the appeal
1) The Learned Trial Magistrate erred in law and in fact in making a finding that the Respondent's employment had been unlawfully and unfairly terminated.

2) The Learned Trial Magistrate having correctly found as a fact that the Respondent had deserted work erred in law and in fact in proceeding to award him compensation for unlawful dismissal thereby disregarding the fact that the Respondent was the author of his own situation.
3) The Learned Trial Magistrate erred in law and in fact in failing to consider and/or follow binding legal precedent placed before her to the effect that the Respondent was not entitled to any compensation for unlawful dismissal having himself deserted his duties.
4) The Learned Trial Magistrate erred in law and in fact in failing to find in accordance with binding legal precedent that the Respondent was never dismissed at all and accordingly the question of compensation did not arise.
5) The Learned Trial Magistrate erred in law and in fact when she awarded the Respondent unpaid leave despite evidence that he had taken his leave at all times when it fell due.
6) The Learned trial Magistrate erred in law and in fact when she awarded the Respondent house allowance pay despite the evidence that his pay was consolidated with house allowance.
7) The Learned Trial Magistrate misdirected herself in point of law when she shifted the burden of proof to the Appellant thereby making the erroneous finding that the Appellant had not proved that the Respondent had taken his leave.
8) The Learned Trial Magistrate having found that the Respondent had been guilty of deserting work thereafter proceeded on the wrong principles and accordingly arrived at an erroneous decision.
9) The Learned Trial Magistrate erred in law and in fact in awarding costs of the claim to the Respondent.

BACKGROUND TO THE APPEAL
3. The  respondent filed  statement of  claim 9th July 2021  alleging unfair termination of employment  and sought for a declaration  that he suffered  unfair, wrongful and unlawful  dismissal from employment.  The respondent sought  reliefs of one month notice pay in liue, underpayment  since employment, housing allowance, overtime, leave  salary in lieu, damages for  wrongful dismissal and  service pay.   He also prayed for  interest from date of filing suit and costs. (page 208-203  of ROA was the claim)

4. Together with the claim the respondent filed a verifying affidavit, his witness statement   and list of documents all of even date of claim. (pages 214-228 of ROA)

5. The suit was opposed by the appellant who entered an appearance and filed a response   to statement of claim dated  2nd December 2012 together with  list of witnesses and  list of documents all of even date(pages 201-206 of ROA).  The appellant further filed witness statements of Geofrey Ongera dated 8th august 2023  and  Rebeccah Njambi of even date and  list and bundle of documents (pages 60-73 of ROA)

6. The Respondent’s case was heard on the  18th October 2023  where he adopted his witness statement  as his evidence in chief  and produced his documents under list of documents  dated    employment card be produced by the Counsel (page 5 of ROA).   The respond 9th july 2021 as C-Exh 1-6. He was cross-examined by counsel for the appellant, Njuguna.  The appellant’s case was heard on even date with DW1 as  Geofrey Ongera  who testified on oath, adopted his witness statement dated  8th august 2023 as his evidence in chief,  and was cross-examined by  counsel of the respondent, Ms. Kigera. The parties took directions for filing of submissions (Trial proceedings at pages 8-26 of ROA).

7. The Trial court delivered its judgment on the 27th March 2024 in favour of the claimant as follows:-

a.  A declaration be and is hereby issued that the claimant suffered unfair, wrongful, and unlawful dismissal from employment.
b. One month  pay in lieu  of notice  Kshs.  12,000
c. Accrued leave days  Kshs.  151,200
d. House allowance  Kshs. 306,217 .34
e. Damages for wrongful  dismissal  Kshs. 144,000
(all sums payable subject to statutory deductions)
f. Costs and interest

DETERMINATION
8. The appeal was canvassed by way of written submissions. Both parties complied.

9. This being a first appellate court, it was held in Selle v Associated Motor Boat Co. [1968] EA 123 that:- “The appellate court is not bound necessarily to accept the findings of fact by the court below. An appeal to the Court of Appeal from a trial by the High Court is by way of a retrial and the principles upon which the Court of Appeal acts are that the court must reconsider the evidence, evaluate it itself and draw its own conclusions though it should always bear in mind that it has neither seen nor heard the witnesses and should make due allowance in this respect. In particular the court is not bound necessarily to follow the trial Judge’s findings of fact if it appears either that he has clearly failed on some point to take account of particular circumstances or probabilities materially to estimate the evidence or if the impression based on the demeanor of a witness is inconsistent with the evidence in the case generally.”

10. The court is further guided by the principles on  appeal decisions in Mbogo v Shah [1968] EA De Lestang V.P (as he then was) observation  at page 94: “I think it is well settled that this Court will not interfere with the exercise of its discretion by an inferior court unless it is satisfied that its decision is clearly wrong, because it has misdirected itself or because it has acted on matters on which it should not have acted or because it has failed to take into consideration matters which it should have taken into consideration and in doing so arrived at a wrong conclusion.’’

Issues for determination
11. The appellant addressed the following issue in written submissions:-Having found that the  respondent  deserted work  the Learned  Trial Magistrate erred  in proceeding  to declare that he had been unlawfully /unfairly  dismissed  and to award  him for the same.

12. The respondent addressed the issue of whether the trial court erred in finding  the termination was unfair  and unlawful  and in the reliefs granted.

13. The court having perused the grounds of appeal and the written submissions of the  parties  found the issues placed before the court on appeal for determination to be:-
a) Whether the  trial court erred in fact and law in finding the termination on ground of desertion was unlawful and unfair.
b) Whether the trial court erred in reliefs granted.

Whether the  trial court erred in fact and law in finding the termination on ground of desertion was unlawful and unfair
14. The appellant submitted that their unchallenged evidence was that the  claimant deserted work , that if  he deserted  work the  employer was supposed to contact him  but their evidence was they tried to contact him without  success. That DW1 told the court he met the claimant at the  labour office and it was agreed he returns to office but did not. The appellant contended  that the case was similar to case  in  Titus Malweo  Wangereka  v Gurdip Singh  Rupra  (2023)e KLR   where the court  in assessing compensation  took into account that the claimant was to blame for the situation.

15. The appellant further relied on the decision in  Ayub Komber  Ciro v Umoja  Rubber Prodcuts  Ltd (2022)e KLR  to submit that  in the said case the court directed  that the  employee  returns to work  without prejudice to the employer’s right of  disciplinary action.  That the last position at labour office was for the employee to go back. That they have no problem with that position. That the foregoing  decisions were binding on the trial court.
Respondent’s submissions
16. The Respondent submitted that the trial court took note that the Respondent did not report to work after the expiry of the off days as evidenced by the Muster roll. However, it held that the Appellant did not qualify to rely on desertion as they were expected to issue a notice to the Respondent informing him, they were considering the termination of his employment on grounds of desertion. They were also required by the law under Section 44(4) of the Employment Act to institute an internal disciplinary hearing. (Page 5 of the Record of Appeal) 43. The trial court relied on the findings in the case of Nyabiba v Apack Company Limited (Cause 2005 of 2017) [2023] KEELRC 672(KLR) (21s March 2023) (judgement) where the Court held: ‘’Evidently, desertion or absconding of duty is a deliberate act of the employee and typically catches the employer unprepared and could lead to disruption. It thus behoves the employer to take reasonable steps to contact the employee to ascertain his/her whereabouts so as to resume duty.‘’ That it was the duty of the employer to demonstrate that it took steps to ensure that the employee resumed duty but failed.  The respondent  further relied on the case on Muthai Muli v Trialink Fabricators [2018] e KLR where the court held “[21] Desertion of duty in itself is a serious offence which renders an employee liable to dismissal. It must however be proved, by demonstrating that the employer has made efforts to reach out to the deserting employee and put them on notice that termination of their employment on account of desertion is being considered.’’ 

17. The Respondent contended that he proceeded to the Labour Offices a week after he had been terminated and agreed to meet, twice, with a representative from the Appellant’s company to reach an amicable conclusion but the Appellant sent representatives that were not familiar with the case leading to no settlement or agreement being reached. That it beats logic that the Respondent took all these measures if he had indeed allegedly deserted work and was not fired.

18. The Respondent further relied on the decision in Mary Chemweno Kiptui v Kenya Pipeline Company Limited [2014] eKLR where the Court found that the Respondent had failed to demonstrate that there was a valid ground to justify the termination of the claimant. To that end, the court found that the termination of the claimant was unfair under subsection 43(1) of the Employment Act.

Decision
19. The trial court held the claimant was absent from work from the 14th May 2021 till end month  having been off duty 10th to 13th May 2021. The trial  court held  that whereas the desertion of duty qualifies as gross misconduct,  the Respondent should have accorded the claimant the opportunity to explain himself.  The respondent did not issue notice to the claimant informing him it was considering termination of employment on the basis of his desertion hence the termination was unprocedural and unfair.

20. The court on evaluation of evidence before the trial court found that  even though the appellant submitted that it tried to get to the Claimant to no avail, there was no cogent evidence of the efforts made in this respect. No evidence of phone call data was availed. No evidence of written communication to the Claimant in the form of a notice to show cause or otherwise was presented to court in effort to end the employee employer relationship under section 41 of Employment Act.  The court upheld the decision applied by the trial court in Nyabiba v Apak  Company Limited (2023)e KLR that notice on desertion ought to issue to the employee as a step under section 41 of the Employment Act. 

21. I find no reason to disturb the decision of the trial court that the respondent did not comply with section 41 of the Employment Act towards ending the employee-employer relationship after the said desertion.  The court upheld the decision that the termination was wrongful and unfair.



Whether the trial court erred in reliefs granted.
22. The Appellant submitted that the court ought to have applied the decision in Ayub Komber  Ciro v Umoja  Rubber Products Ltd (2022)e KLR  and ordered the Respondent to go back to work without prejudice of disciplinary proceedings by the employer as the last position at labour office was for the claimant to resume duty. It is trite written submissions are not pleadings. I perused the response to the claim filed before the trial court and dated  2nd December 2021. The appellant did not make that offer for the trial court to consider. The Appellant simply called for dismissal of the suit (pages 129-132). 

23. The trial court awarded the Respondent remedies as follows:-


A declaration be and is hereby issued that the claimant suffered unfair, wrongful, and unlawful dismissal from employment.
One month  pay in lieu  of notice  Kshs.  12,000
Accrued leave days  Kshs.  151,200
House allowance  Kshs. 306,217 .34
Damages for wrongful  dismissal  Kshs. 144,000
(all sums payable subject to statutory deductions)
Costs and interest

24. Having found the termination was unprocedural and unfair, the  claim for Kshs.12,000 for one month pay in lieu of notice was upheld.

25. The Court found that there was no evidence produced by the Respondent to show the Claimant took leave days during the period he worked granted Kshs. 151, 200 for the accrued leave days the Claimant was under their employment. The Respondent did not controvert the claim and the award is upheld.

26. The Trial Court further held that there being no evidence produced to prove that the Claimant’s salary was inclusive of the housing allowance awarded the Claimant Housing allowance of Kshs. 306,217.34 (page 6 of the Record). The Claimant was employed on minimum wage (page 223 of ROA) and RW1 admitted he was not provided with housing. The Respondent did not avail the payslip to prove that  wages paid  included the housing allowance.  The award  is upheld.

27.  The trial Court found stated the Claimant did not produce proof of his underpayment whereas the Respondent had produced a salary payment schedule showing the Claimant’s pay leading to rejection of this prayer.  The finding is upheld.


28. The trial Court found that with regards to service pay, because the Claimant produced NSSF payment data showing monthly contributions made by Brink Security Services who was not the Respondent failed to prove that he was entitled to payment of service pay. The finding is upheld.

29. On compensation awarded, the trial Court further awarded the Claimant Kshs. 144,000 as prayed for damages for wrongful termination as provided for under Section 49(1) (c) of the Employment Act. The appellant submitted that the trial court having established from the muster roll the claimant absconded duty from 14th May 2021 to end month that should have been factored in the awards as held in Titus Malweo  Wangereka  v Gurdip Singh  Rupra  (2023)e KLR  where Justice B.O Manani  observed:-
‘’ I take cognizance of the fact that it is this conduct that directly resulted into the separation of the claimant . The Respondent’s only fault was that he failed to invite the Claimant to a disciplinary session before closing the employment relation between the parties.
38.Taking all these factors into consideration, I am of the view that the Claimant is morally undeserving of any compensation whatsoever. However, the law recognizes that the Claimant’s right to due process was infringed by the Respondent’s failure to invite him for a disciplinary hearing. And for this, the law requires that the Claimant be compensated in some way. It is for this reason alone that I will order that the Respondent pays the Claimant compensation for wrongful termination limited to the Claimant’s gross salary for three (3) months only, that is to say Ksh. 29,649/=’’ The court  at appeal was persuaded by the decision.  An employee who contributed to the separation can not be justified to award for maximum compensation.  The court agreed with the submission by the appellant.  The claimant’s conduct, of being absent from duty after expiry of off days,  led to the separation.  Consequently, the award of the compensation for 12 months’ salary was set aside and substituted with award the equivalent of  2 months' salary compensation thus Kshs. 24,000.
The court found no basis to interfere with the other awards.

Conclusion
30. The appeal is allowed on the award of compensation for the unlawful termination only which was reduced from maximum compensation of 12 months(Kshs. 144000) salary to 2 months salary (Kshs. 24,000).  The Judgement and Decree of the Hon. Catherine Mburu. Principal Magistrate. delivered on 27th March 2024 in Kikuyu ELRC Cause No. E024 of 2021 is set aside and substituted as follows:-
Judgment is entered for the claimant against the respondent as follows:-
i. A declaration  is issued that the  termination was unprocedural and unfair,
ii.   Notice pay in lieu awarded for sum of Kshs.12,000 being one month salary.
iii. Accrued leave days  Kshs.  151,200
iv. House allowance Kshs. 306,217 .34
v. Damages for wrongful dismissal  Kshs. 24,000
(all sums  above payable subject to statutory deductions)
vi. Costs and interest from date of judgment until payment in full.

31. Each party to bear own costs in the appeal.

32. It is so Ordered. 

DATED, SIGNED, AND DELIVERED IN OPEN COURT AT NAIROBI THIS 21ST  DAY OF FEBRUARY, 2025.


    Pada Security & Alarm Systems Limited VS Ndimu Waningo Wanaswa Pada Security & Alarm Systems Limited VS Ndimu Waningo Wanaswa