Del Monte Wins Legal Battle Over Employee's Unauthorized Payroll Manipulation

The Employment and Labour Relations Court in Nairobi has dismissed a case brought by a former payroll accountant against Del Monte Kenya Ltd, upholding the company’s decision to terminate her employment for unauthorized alterations to her salary and benefits.

The ruling, delivered by Justice Byram Ongaya, emphasizes the significance of trust and integrity in handling sensitive financial data and reinforces employers' rights to enforce strict conduct policies. Catherine Ochako, who served as a payroll accountant for Del Monte for four years, was dismissed in December 2020 following an internal investigation that revealed she had accessed the company’s payroll system without authorization while on sick leave in November 2020.

During this time, she made multiple unauthorized adjustments to her salary, inflating it to as high as Sh250,000 from her base salary of Sh91,105, and modified her housing and transport allowances. These actions were discovered during a routine payroll review by a senior financial accountant. Del Monte argued that Ochako’s actions constituted a serious breach of the company’s code of conduct and business ethics, leading to her dismissal.

In her defense, Ochako claimed she was testing the system's functionality due to recurring technical issues, asserting that the adjustments did not result in financial loss to the company as she never received the inflated amounts. The court, however, found Ochako's explanation unconvincing, citing inconsistencies in her testimony regarding the testing of live versus test payroll environments.

Justice Ongaya has ruled that Del Monte had followed due process in terminating Ochako’s employment and that her actions amounted to misconduct and a breach of trust. Ochako’s request for Sh2 million in damages for unfair dismissal was subsequently rejected. Justice Ongaya emphasized that the termination was both procedurally and substantively fair, aligning with the Employment Act, 2007.

“While the claimant (Ochako) contended that she was only testing the system, her contradictory testimony stating she tested both the live and test environments undermined her defence. The company’s decision to terminate her employment for this misconduct was valid and in accordance with the law.” Justice Ongaya explained.