Court order Toyota Kenya to pay ex-staff Sh6.2million for wrongful dismissal
The High Court has awarded former Toyota Kenya Limited Finance Manager Sh6.2million as compensation for wrongful and unfair dismissal over alleged gross misconduct.
In a ruling by justice Linnet Ndolo, the automobile firm did not avail any valid reason for sacking her and that she was entitled to compensation for wrongful and unfair dismissal.
The judge ruled that Toyota failed to follow procedures for a disciplinary hearing as required by Section 41 of the Employment Act.
“In the result, I award the Claimant 12 months’ compensation. In arriving at this award, I have taken 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 maintained a good performance 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.
The judge ruled that the claimant 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.
She argued that she was not furnished with the forensic audit report which the company said was confidential.
According to court documents, the former automobile firm’s finance boss was invited for a disciplinary hearing on the same date of her suspension to pave way for completion of investigations on the forensic auditor’s findings.
She wanted a declaration that her dismissal was unlawful and unfair and 12 months’ salary as compensation for unfair termination.
She wanted pension deductions for the month of February 2019 amounting to Sh40,000 and a months’ salary instead of notice.
In its response, Toyota Kenya confirmed that there was indeed an employment contract dated March 16,2007 between itself and the claimant.
It admitted that the former finance boss was suspended on February 15,2019 to allow further investigations into allegations of gross misconduct.
Toyota Kenya however said that it provided a report that related to her only noting that it had a proper reason for her dismissal.
