13/04/2024
Our client, X, a SACCO, was sued by its former Chairperson for unfair dismissal from employment. The SACCO terminated the employee's services after it was discovered that he fraudulently converted SACCO funds for his own benefit. The employee even wrote a letter confirming taking SACCO money and promising to refund. The employee was also charged with stealing by servant at Kibera Magistrate's court. Surprisingly and after his shock acquittal by the criminal court, the employer instituted civil proceedings in the nature of an employment claim against the sacco seeking, among others, compensation for unfair termination of his contract of employment, salaries he would have earned during the time he was facing criminal trial and salaries he would have earned till retirement. His total claim came to about Kshs. 9 million.
While dismissing the suit, Hon. Christine Ogweno, noted that there was a valid reason for the termination of the contract as the employee himself admitted in writing that he took the money. Further, the sacco was able to prove that the employee paid himself using blank cheques which were in his custody. The learned Magistrate also pointed out the principle of law that the outcome of a criminal case does not bind the civil court.
A case before the Co-operative Tribunal for recovery of money stolen is ongoing.