The Employment and Labour Relations Court has ruled that employees could face millions in liability for abandoning their employer's vehicles, stemming from a case where a truck driver sued his employer for unfair dismissal, underpayment, and failure to pay full benefits. The driver received compensation from the company, but the court also ordered him to pay substantial damages for truck damage and unreturned items.
A recent ruling by the Employment and Labour Relations Court highlights the severe financial risks employees face for abandoning employer vehicles. The decision arose from a lawsuit filed by a truck driver against his company, alleging unfair dismissal, underpayment, and denial of full benefits.
The employer defended the termination as lawful, citing the driver's misconduct, negligence, significant losses to a truck, and failure to return company property. However, the court deemed the dismissal unfair, emphasizing that the company failed to provide a fair hearing, despite the driver's abandonment of the vehicle in protest.
The court also determined that the driver's contract labeled him simply as a 'driver,' yet he operated a commercial heavy truck, entitling him to higher pay. Consequently, the company was ordered to pay Ksh 394,508.60 in compensation, Ksh 39,405.86 in notice pay, Ksh 59,221.15 in service pay, Ksh 233,518.32 for underpayments, and Ksh 37,653.85 for accrued leave, totaling Ksh 764,307.78.
In a counterclaim, the employer sought damages for the abandonment, which the court upheld, holding the driver liable for negligence causing truck damage and unreturned tools. The driver was ordered to pay Ksh 2,563,285 for vehicle losses and Ksh 113,000 for items, amounting to roughly Ksh 2.67 million.
Under Section 19 of the Employment Act, employees are accountable for losses from neglecting assigned tools like vehicles. Section 44 classifies abandonment as a fundamental breach of contract, potentially leading to dismissal and liability for employer property damage.
