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Court of AppealPartially AllowedNakuru Civil Appeal (as stated in judgment; exact number not shown in excerpt)· [2023] KECA 1146 (KLR)

Ondieki v Comply Industries Ltd (Civil Appeal 33 of 2019) [2023] KECA 1146 (KLR)

Court of Appeal of Kenya
22 September 2023
3,852 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal ruled that once a worker proves they were dismissed, the employer must justify the dismissal or it is unfair.

What this practically means

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Executive summary

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This is a first appeal from the judgment of M. Mbaru, J. of the Employment and Labour Relations Court delivered on December 6, 2018, dismissing a former casual labourer's claims for underpayment, overtime, leave, notice pay and damages for unlawful termination against Comply Industries Limited. The appeal was canvassed by written submissions; the respondent filed no submissions and did not attend. The Court, applying its first-appeal mandate under rule 31(1)(a) of the Court of Appeal Rules, 2022, framed three issues: whether the dismissal was unfair, whether the appellant was entitled to the reliefs claimed, and costs. Reading section 47(5) of the Employment Act in unison with sections 107 and 108 of the Evidence Act and the Supreme Court's guidance in Samson Gwer, the Court held that the appellant discharged his initial burden by proving an oral termination by the respondent's supervisor, after which the burden shifted to the employer to justify the dismissal. The respondent adduced no such evidence, and under section 43(1) the termination was deemed unfair and unprocedural, offending sections 44(2) and 45. However, the Court affirmed the trial court's rejection of the monetary claims for underpayment, overtime, leave and notice pay, finding these had been competently settled through the County Labour Officer's payment agreement. Invoking the discretionary remedies under section 49 and guided by the related decision in Alex Charo v Comply Industries Limited, the Court awarded compensation equivalent to five months' gross wages, Kshs.66,600.00. The appeal was allowed only in part: the finding of fair dismissal was set aside and substituted, Kshs.66,600.00 awarded, and the remaining claims dismissed. Considering partial success and the respondent's non-participation, the appellant was awarded half the costs of the appeal.

Key legal issues

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01

Allocation of the burden of proof in unfair termination claims under section 47(5) of the Employment Act

Holding

The employee discharges the initial burden by proving that an unfair termination occurred; the burden then shifts to the employer to justify the grounds of termination. The trial court erred by requiring the appellant to call the employer's own supervisor as a witness.

Reasoning

Reading section 47(5) of the Employment Act in unison with sections 107 and 108 of the Evidence Act, the Court held that the appellant pleaded and testified that the respondent's supervisor Victor orally terminated his employment, thereby discharging his evidentiary burden. It was then for the respondent, on whose knowledge the events lay, to rebut that evidence or prove no such termination occurred. The trial court misapplied the law by shifting that burden back to the appellant, and the respondent produced no evidence justifying the dismissal.

p. 5
02

Whether the dismissal was unfair and wrongful

Holding

The dismissal was unfair and unprocedural; it offended section 44(2) and constituted unfair termination under section 45 of the Employment Act.

Reasoning

The respondent summoned the appellant to its head office and sent him to the County Labour Office without substantiating any redeployment or explaining the events, and gave no notice of termination. Section 43(1) requires the employer to prove the reasons for termination, failing which the termination is deemed unfair. The trial court's contrary finding that the appellant contributed to his dismissal was a misapprehension of the evidence, and acceptance of terminal dues after termination could not constitute contribution.

p. 5
03

Quantum of compensation for unfair termination

Holding

The equivalent of five months' gross wages, calculated at Kshs.66,600.00, was fair and adequate compensation under section 49(1)(c) of the Employment Act.

Reasoning

The remedies under section 49 are discretionary and guided by the thirteen considerations in section 49(4). The appellant was terminated without any reason or justification and did not contribute to his dismissal. Guided by the award in the related case of Alex Charo v Comply Industries Limited before Radido Stephen J., the Court fixed compensation at five months' gross wages computed on the hourly rate for 8 hours a day.

p. 7
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First appellate court's mandate on a first appeal

Holding

On a first appeal the Court must independently re-evaluate, reassess and reanalyse the evidence and the applicable law before arriving at its own conclusion.

Reasoning

Rule 31(1)(a) of the Court of Appeal Rules, 2022 confers this mandate, consistent with the Court's decision in Abok James Odera v John Patrick Machira. The Court applied it by independently reviewing the pleadings, evidence and exhibits rather than deferring to the trial court's findings, which is how it identified the misapplication of section 47(5).

p. 4

Legal principles established

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  • Once an employee proves an unfair termination or wrongful dismissal, the burden of justifying the grounds for termination shifts to the employer, who must adduce evidence; failure to do so means the termination is unfair under sections 43 and 45 of the Employment Act
  • Remedies under section 49 of the Employment Act are discretionary, to be granted on the peculiar facts of each case having regard to the section 49(4) considerations
  • Terminal dues paid under a settlement before a labour officer are all-inclusive of amounts payable on termination, save for damages for unlawful termination which only a court may award

Court orders

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  1. 1.The finding of the learned Judge that the appellant was fairly dismissed is set aside and substituted with a finding that the appellant was unfairly and wrongfully dismissed
  2. 2.The appellant is awarded Kshs.66,600.00 as compensation for unfair and wrongful termination of employment
  3. 3.The appeal in respect of the other claims is dismissed
  4. 4.The appellant is awarded half the costs of the appeal against the respondent

Authorities

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Legislation

  • Regulation of Wages (General) Orderregulation 27
  • Employment Actsection 28
  • Employment Actsection 10(6) and (7)
  • Employment Actsection 47(5)
  • Employment Actsection 43(1)
  • Employment Actsection 44(2)
  • Employment Actsection 45
  • Employment Actsection 49, including subsection (1)(c) and (4)
  • Evidence Actsection 107
  • Evidence Actsection 108
  • Court of Appeal Rules, 2022rule 31(1)(a)

Cases cited (9)

  • Peter Otabong Ekisa v County Government of Busia
    [2017] eKLR
  • Alex Ocharo v Comply Industries
    [2017] eKLR (Nakuru E.L.R.C No. 205 of 2016)
  • Ronald Nyambu Daudi v Tarnado Carriers Ltd
    [2019] eKLR
  • Janet Nyandiko v Kenya Commercial Bank Ltd
    [2017] eKLR
  • Milano Electronics Ltd v Dickson Nyasi Muhaso
    [2021] eKLR
  • Abigael Jepkosgei Yator & Another vs. China Hanan International Co. Ltd
    [2018] eKLR
  • Abok James Odera T/A A.J Odera & Associates v John Patrick Machira T/A Machira & Co. Advocates
    [2013] eKLR
  • Samson Gwer & 5 others v Kenya Medical Research Institute & 3 others
    [2020] eKLR
  • Kenya Broadcasting Corporation v Geoffrey Wakio
    [2019] eKLR
On appeal from
Employment and Labour Relations Court
Not stated in judgment
Jurisdiction invoked
First appeal under rule 31(1)(a) of the Court of Appeal Rules, 2022

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Ondieki v Comply Industries Ltd (Civil Appeal 33 of 2019) [2023] KECA 1146 (KLR)", Case Analysis (2023). Nakuru Civil Appeal (as stated in judgment; exact number not shown in excerpt). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2023/1146/eng@2023-09-22

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