Rift Valley Railways Kenya Ltd v Symon Odhiambo Orita [2015] KECA 859 (KLR) | Unlawful Termination | Esheria

Rift Valley Railways Kenya Ltd v Symon Odhiambo Orita [2015] KECA 859 (KLR)

Full Case Text

IN THE COURT OF APPEAL

AT KISUMU

(CORAM:  KARANJA, MARAGA,  & KANTAI, JJ. A)

CIVIL  APPEAL NO.  37  OF 2014

BETWEEN

RIFT VALLEY RAILWAYS KENYA LTD..............................APPELLANT

AND

SYMON ODHIAMBO ORITA........................... RESPONDENT

(Appeal from a Decree and  Judgment  of the High Court of Kenya at

Kisumu  (Hon. Lady  Justice Hellen Wasilwa , J)  dated 14th March,   2014

in

INDUSTRIAL  CAUSE  No.  207  OF 2013

**************************************

JUDGEMENT OF THE COURT

Section 17 of The  Industrial Court  Act (now renamed Employment and Labour Relations Act  through Act No. 18 of 2014)  mandates us, on an appeal from the Industrial Court, to consider only matters  of law.   That provision provides:

“(1)   Appeals from the Court shall lie to the Court of Appeal  against any judgment, award, order or decree issued by   the Court in accordance with Article 164 (3) of the Constitution.

(2)    An appeal from a judgment, award, decision, decree or order of the Court shall lie only on matters of law.”

Are there matters  of law arising from the findings of Hellen Wasilwa, J, in the judgement appealed from which was delivered on 14th March, 2014 in Kisumu Industrial Court Cause No. 207 of 2013 between the respondent Symon Odhiambo Orita and the appellant Rift Valley Railways Kenya Limited?

The uncontested facts emerging from the evidence recorded by the said learned judge and which are summarized in the said judgement were that the respondent was employed by the appellant as a Train Control Officer vide Letter of Appointment dated 27th October 2006 on terms and conditions  set out in that letter.   In January 2013 the respondent proceeded on his annual leave which was to end on 4th February, 2013 when he was required to resume duty.  As fate would have it, the  respondents' wife was taken ill that very morning and the respondent wrote a text message to his immediate superior Thomas Yogo (RW1) (Yogo) explaining his predicament and requesting for emergency leave.   Yogo declined to grant leave.   The respondent followed the telephone text message to Yogo with a formal letter of the same day which was delivered by DHL to Yogo.  Meanwhile the respondent rushed his wife to Clinix Health Care where they were referred to Amani Hospital, Kisumu the same day.  Amani Hospital could not deal with the condition that afflicted the patient and referred the matter to Nairobi West Hospital

where a diagnosis disclosed that the respondent's wife had suffered brain haemorrhage.  Because costs at that hospital were high beyond the respondent's reach the case was referred to Tenwek Hospital where successful surgery was performed after the patient was admitted there on 14th February, 2013.

The respondent reported to work that day at about noon but could not resume work as he was served with a letter on that very day where he was  required to show cause why disciplinary action could not be taken against him for desertion of duty.

By a letter dated 18th February, 2013 the respondent  explained the events concerning  his wife's illness pleading that the case concerned an emergency and he had no opportunity to make a formal request for emergency leave by  use of processes set up by the appellant.   He apologised for the inconvenience he had caused to his employer.

By a letter dated 29th April, 2013 the appellant wrote to the respondent  informing him that he had been dismissed from employment giving  reasons that the respondent had  absented himself from work without approved leave and further that he had in December, 2012 been given a final warning for a similar offence.

Those are the events that led to the suit at the Industrial Court, Kisumu where the respondent contested the appellant's actions praying for a declaration that the dismissal be declared wrongful and that he be reinstated  to employment and payment of terminal benefits.  After hearing evidence from the  respondent and two witnesses for the appellant the learned judge  framed as issues for her determination whether the respondent  had committed acts of misconduct to entitle the appellant to dismiss him from employment; secondly whether the appellant followed laid down disciplinary procedures before dismissing the respondent and finally whether the respondent was entitled to the orders  sought in the statement of claim.

On the first issue the learned judge reviewed evidence pertaining to the appellants wife being taken  suddenly ill which illness led to her  admission to hospitals and surgery being undertaken and considered the appellant's contention that there were laid down procedures for applying for leave which procedures the respondent had not followed.  The learned judge held that:

“... It is true that the code of  conduct provides for sick leave , but in the case of a matter of life and death as in the case of the claimant's wife, it is prudent to save a  life than pursue  leave applications first.   The insistence  by the respondents that claimant should have applied for leave  first is inhumane and unreasonable given the circumstances of this  case.   The absence following claimant's desire to save his wife's life cannot be termed as desertion...”

In respect of the second issue the learned judge  found that the appellant was wrong to term a warning issued to the  respondent on 14th December, 2012 as a final warning  because it related to one  event and terming it a final warning violated provisions of the appellants Code of Conduct  which required that an employee  who misconducted himself be  served with a first written  warning followed by a second written warning in case of  further misconduct.  If such employee  received three warning letters in a period of twelve months the  third warning would serve as a final warning – Clause 7. 0 (b) of the said Code of  Conduct.   The appellants witnesses confirmed in evidence that  the respondent had only been warned once in the  year 2012 and therefore the  warning served on 14th December, 2012 could not be  termed a final warning  but was indeed a first  warning.   The learned judge therefore held that the appellant had not followed its own procedure in dismissing the respondent from its employment and it followed that the respondent was entitled to compensation.

There are eight grounds of appeal set out in the Memorandum of Appeal filed by the appellant.   In the first ground it is said that the learned judge erred in law by finding that dismissal of the respondent by the appellant was unlawful and unfair.   In the second  ground the learned judge is faulted for failing to consider that the respondents dismissal was based on desertion of duty and thus, says the appellant, not entitled to any  payment of salary and allowances.

In the third ground it is said that the learned judge erred for failing to consider that the respondent had admitted his failure to report back to work without formal leave.

In the fourth ground the learned judge  is said not to have considered the appellants disciplinary process while in the fifth ground it is said that award of damages was contrary to the provisions of the Employment Act.

The sixth ground faulted the learned judge for ignoring documents produced in court as part of the evidence while the penultimate ground faults  the learned judge for arriving at a decision which is said to be contrary to law. The final ground says that the learned judge erred for failing to find that the process leading to the  respondent's dismissal was fair, lawful and constitutional.

Mr. Jones Nyachiro, learned counsel for the appellant in submissions before us submitted that the appellant was entitled to terminate the respondents' services because the respondent was involved in previous disciplinary issues.  Counsel also faulted the learned judge for adopting a salary in computing  compensation which salary had not been proved.

Mr. Rayola Olel, learned counsel for the respondent, in opposing  the  appeal supported the learned judge  for finding that  the warning letter dated 14th December, 2012 was indeed a first warning but not a final warning at all.  Counsel  conceded that actual salary earned  by the respondent had not been  proved.

We have considered the record  of appeal, the Memorandum of Appeal, submissions made before us and the  law.

We agree with the learned judge  that the appellant flouted its  own code of conduct when it served the respondent with what  it called a final warning on 14th December, 2012, when, indeed, that was a first warning.  Clause  7. O (b) of the said Code required the appellant to serve a first warning followed by a second warning if the misconduct was repeated and a third and final warning if such employee committed the same offence within a period of twelve months.   It was further required by the said Code that such final warning carries the information that termination may follow if such an employee did not improve  his conduct.

The learned judge held, correctly, we think, that the circumstances that faced the appellant on the morning of 4th February, 2013 when he was required to report to work were grave and compelling and that the respondent acted reasonably when he sent a telephone text message to his immediate superior, Mr. Yogo, whereafter he rushed his ailing wife to hospital.   The respondent took further reasonable steps when he sent a letter to his employer dispatched through  DHL where he requested for emergency leave.  The respondent took his ailing wife to various hospitals in different towns and he duly reported  to work on 14th February, 2013  when his wife was admitted at Tenwek hospital.   In any event while taking his wife to Nairobi West Hospital the respondent visited the appellants  headquarters offices in Nairobi where  he reported his predicament to the Human Resources Manager.

Counsel for the appellant submits that the learned judge awarded a monthly  salary of Kshs. 46,000/= when actual salary had not been proved.   This complaint has merit.   In the statement of claim a salary of Kshs. 40,148/= is pleaded but in evidence the respondent stated that his salary was Kshs.  46,000/=.   The letter of employment produced in evidence gave a consolidated  salary of Kshs. 30,000/= per month.

Parties are bound by their pleadings and it was not open to the respondent to plead a sum as monthly salary and change it in evidence without amendment of the pleading.   In Independent and Boundaries Commission and Anor v Stephen Mutinda Mule & 3 others Civil Appeal No. 219 of 2013 this court  cited with  approval the decision of the Supreme Court of Nigeria  in Adetoun Oladeji (NIA) Limited v Nigeria Breweries PLC SC  91/2002 where Pius Adereji, JSC stated thus in respect of pleadings:-

“... it is now a very trite principle of law that parties are bound by their pleadings and that any evidence led by any of the parties which does not support the averments in the pleadings, or put in another way, which is at  variance with the averments of the pleadings goes to no issue and must be disregarded.”

It was also stated by the Supreme Court  of Nigeria that:-

“In fact, that parties are not allowed to depart from their pleadings is on the authorities basic as this enables parties to prepare their evidence on the issues  as joined and avoid any surprises by which no opportunity is given to the other party to meet  the new situation.”

In the case before the learned judge the monthly salary pleaded was denied in the statement of defence.   The learned judge, with respect, erred when she awarded a salary which was not in accord with what was pleaded.  That salary was not proved and  was denied in the defence.   In the circumstances of the case that was before the learned judge the correct figure to use in calculating  compensation awardable to the  respondent was the sum of Kshs. 30,000/= which was the salary  stated in the letter of employment produced as part of the evidence and which letter was common to both sides in the case before the learned judge.

We therefore interfere with the award in the judgement appealed from by substituting the sum awarded in respect of one month salary in lieu of notice with a sum of Kshs. 30,000/=.   The award of twelve  months salary as compensation for unlawful termination translates to Kshs. 360,000/=.

This appeal succeeds only to the extent of such  interference.The appellant shall have 1/3of the costs of the appeal.

Those, then, are our orders.

Dated and Delivered at Kisumu this  12th  day of   March,  2015.

W. KARANJA

JUDGE OF APPEAL

D. MARAGA

JUDGE OF APPEAL

S. ole  KANTAI

JUDGE OF APPEAL

I certify that this is a true

copy of the original.

DEPUTY REGISTRAR