(Ato Tesfaye Wordofa Dano vs. Geda Transport P.L.C.)
Date: December 28, 2015 (E.C.)
Binding Legal Interpretation (Principle):
Proof of Breach of Trust: When an employer terminates a contract of employment without notice based on an act of breach of trust, deceit, or fraud committed by the employee, the termination is legal only if the commission of the act is supported by evidence.
Relevance of Investigation Period: The procedural investigation period is not the determining factor; the court must examine the evidence presented to verify whether or not the employee committed the alleged fault.
Reasoning:
The Applicant (Driver) was dismissed for breach of trust after replacing tires he had received with others.
The Cassation Bench held that it was an error to set aside the established fact (the disappearance of one tire) on the grounds that no investigation was conducted prior to the issuance of the termination letter. Since the act of breach of trust was factually proven, the dismissal is lawful.
Ruling:
The judgment of the Federal High Court (holding that the termination was legal and that the employee is not entitled to compensation or payment in lieu of notice) is affirmed.