Toyota Kenya ordered to pay ex-employee Sh6.2m for wrongful dismissal

The judge said Toyota failed the test of following the procedures

In Summary
  • Justice Linnet Ndolo on March 2, ruled that Toyota Kenya did not avail any valid reason for the Claimant's dismissal and she was entitled to compensation for wrongful and unfair dismissal.
  • The judge said, Toyota failed the test of following the procedures for a disciplinary hearing as required by Section 41 of the Employment Act.
Gravel.
Gravel.
Image: FILE

Toyota Kenya Limited has been ordered by the High Court to pay its former Finance Manager Sh6.2 million for wrongful dismissal over alleged gross misconduct.

Justice Linnet Ndolo on March 2, ruled that Toyota Kenya did not avail any valid reason for their finance Manager's dismissal and she was entitled to compensation for wrongful and unfair dismissal.

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The judge said Toyota failed the test of following the procedures for a disciplinary hearing as required by Section 41 of the Employment Act.

She said the matter was an investigative meeting which ought to have been followed by a duly convened disciplinary meeting with an adequate lead time for her to prepare her defence.

"In the result, I award the Claimant 12 months' compensation. In arriving at this award, I have taken into in the Claimant's long service and the Respondent's unlawful conduct in bringing the employment relationship to an end," the judge ruled.

In 2019, the Finance Manager through lawyer Sam Ogutu sued Toyota Kenya claiming she was employed on March 16, 2007, as an assistant Management Accountant and was later promoted to Finance Manager on August 9, 2016.

The Manager said that she had a stellar performance record throughout her employment with Toyota Kenya.

“On February 15, 2019, I was suspended to allow Toyota to conduct further investigations, following a forensic audit report on 'Hino Special Service Campaign Project’," she said.

Ogutu said that the Manager was served with a show cause letter, citing allegations of her culpability which led to an established loss of Sh20,110,682.

She was required to respond by 3.00 pm on February 18, 2018.

“Still on the same day, the Claimant was served with a notice requiring her to attend a disciplinary hearing scheduled for February 20, 2019,”added Ogutu.

She contested that her suspension was not lifted.

Lawyer Sam Ogutu lawyer at Milimani law court
Lawyer Sam Ogutu lawyer at Milimani law court

She added that she was not furnished with the forensic audit report, which Toyota Kenya termed as confidential.

Court documents indicate that she was invited for a disciplinary hearing on the same date she was suspended to pave the way for completion of investigations on the findings of the forensic auditors.

The claimant wanted a declaration that her dismissal was unlawful and unfair and 12 months ‘salary as compensation for unfair termination.

She wanted to be granted pension deductions for the month of February 2019 amounting to Sh40,000 and one month’s salary in lieu of notice.

Toyota Kenya in response confirmed the existence of an employment contract dated March 16, 2007 between itself and the claimant.

It admitted that the woman was suspended on February 15, 2019, to pave way for further investigations into allegations of gross misconduct.

Toyota Kenya said that it availed a report that related to her only adding that it had a proper reason for dismissing her.

It said that it conducted a proper disciplinary hearing before dismissing her.

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