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Court of AppealDismissedCivil Appeal 10 of 2018· [2022] KECA 651 (KLR)

Cheruiyot Kipkemoi Joel v Tirgaga Tea Factory Company Limited

Court of Appeal
8 July 2022
HOHannah OkwenguAMA. Mbogholi MsaghaKLK. I. Laibuta
1,813 words in judgment
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The bottom line

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Kenya's Court of Appeal ruled that a worker who voluntarily resigns cannot later claim unfair dismissal compensation, even if the resignation letter was addressed to a different company.

What this practically means

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Executive summary

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The Court of Appeal at Nakuru (Okwengu, Mbogholi-Msagha and Laibuta, JJA) dismissed a first appeal against the Employment and Labour Relations Court at Kericho (Marete, J.), which had rejected a claim for unlawful and unfair summary dismissal. The appellant, an employee of Tirgaga Tea Factory Company Limited, contended that a resignation letter dated 26th February 2014, addressed to the factory unit manager of Kapkoros Tea Factory Co. Limited, could not terminate his employment with the respondent, a separate legal entity, and that he was coerced into signing it. The respondent maintained that it was a satellite company of Kapkoros whose factory unit manager handled its administration, and that the appellant had signed an employment release agreement acknowledging payment of all terminal dues. Applying its first appellate duty to re-evaluate the evidence, the Court held that the appellant did not deny authorship of the resignation letter, adduced no evidence of coercion or forgery, and never countermanded the letter directly to the respondent. It found the letter was intended for the respondent and was received by the factory unit manager as agent. The appellant having voluntarily resigned, his services were not terminated, so claims for salary in lieu of notice and compensation under section 49 of the Employment Act failed, and the signed release agreement confirmed his terminal dues were paid. The appeal was dismissed with each party bearing its own costs.

Key legal issues

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01

Whether the appellant voluntarily resigned or was coerced into resigning

Holding

The appellant voluntarily wrote the resignation letter; no evidence of coercion or forgery was adduced, and he did not deny authorship.

Reasoning

The appellant did not specifically deny writing the resignation letter but argued it was addressed to Kapkoros Tea Factory Co. Limited, not the respondent. The court found no evidence of coercion or forgery was laid before the trial court. His conduct in submitting the letter to the factory unit manager, and his failure to countermand it, aligned with the respondent's explanation of the satellite-company arrangement.

p. 3
02

Whether the resignation letter addressed to a non-employer entity could found a valid resignation

Holding

The letter, though addressed to Kapkoros Tea Factory Co. Limited, was intended for the respondent and was received by the factory unit manager as agent; the resignation was effective.

Reasoning

The respondent explained that it was a satellite company of Kapkoros Tea Factory Co. Limited whose factory unit manager undertook its administrative management. The appellant's conduct in submitting the letter to that manager, and his failure to write directly to the respondent countermanding the resignation, supported the finding that the letter was intended for the respondent and received through an agent.

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Whether the appellant was entitled to compensation, notice pay or terminal dues

Holding

Having voluntarily resigned, the appellant was not entitled to salary in lieu of notice, compensation or damages under section 49 of the Employment Act; he also signed an employment release agreement confirming payment of terminal dues.

Reasoning

Because the appellant resigned voluntarily, his services were not terminated and the question of unlawful or unfair termination did not arise. Consequently, the statutory remedies under section 49 of the Employment Act were unavailable. As to terminal dues, the appellant had signed an employment release agreement confirming receipt, so the learned Judge correctly dismissed the claim.

p. 4

Legal principles established

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  • On a first appeal, the Court of Appeal must re-evaluate, re-assess and re-analyse the evidence and reach its own conclusions, giving reasons either way.
  • A resignation letter addressed to a third party may still be effective against the employer where it was intended for the employer and received by an agent; an employee who does not deny authorship or prove coercion or forgery is bound by it.

Court orders

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  1. 1.The appeal is dismissed
  2. 2.Each party shall bear their own costs

Authorities

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Legislation

  • Court of Appeal RulesRule 29
  • Employment Actsection 49

Cases cited (3)

  • Abok James Odera t/a A.J Odera & Associates v John Patrick Machira t/a Machira & Co. Advocates
    [2013] eKLR

    Restating the duty of a first appellate court to re-evaluate and re-analyse the evidence and reach its own conclusions.

  • Coca Cola East & Central Africa Limited vs Maria Kagai Lugaga
    [2015] eKLR

    Cited by the respondent on constructive dismissal.

  • Premier Construction Limited vs. Josephat Bwire Lukale & 5 Others
    [2017] eKLR

    Cited by the respondent on constructive dismissal.

On appeal from
Employment and Labour Relations Court of Kenya at Kericho
ELRC No. 199 of 2015
Jurisdiction invoked
First appeal to the Court of Appeal under Rule 29 of the Court of Appeal Rules

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (4)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Cheruiyot Kipkemoi Joel v Tirgaga Tea Factory Company Limited", Case Analysis (2022). Civil Appeal 10 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2022/651/eng@2022-07-08

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.