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Court of AppealDismissedNot stated in the judgment· [2024] KECA 1011 (KLR)

Brade Gate Holdings Limited v Mwangi (Civil Appeal 92 of 2019) [2024] KECA 1011 (KLR)

Court of Appeal of Kenya
2 February 2024
1,264 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal confirmed that an employer who sacks a worker verbally, without notice or reason, and skips calling key witnesses will lose.

What this practically means

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Executive summary

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The respondent was employed by the appellant on 17th September 2013 as Group General Manager at a salary later raised to Kshs.154,847. He claimed that on 18th October 2015 the appellant's Chairman, Dr. Thuo Mathenge, verbally, arbitrarily and illegally terminated his employment without notice during a staff meeting, ordering him to hand over, pack and leave. The appellant denied terminating him and asserted he absconded. The ELRC at Nyeri (B. Ongaya, J.), by judgment of 14th July 2017, found the termination verbal, without notice and without valid reason under sections 41 and 43 of the Employment Act, and awarded twelve months' salary under section 49(1)(c), one month's salary in lieu of notice under section 35(1)(c), unpaid leave, and a certificate of service. The appellant appealed on four grounds contending the Judge erred in finding a verbal dismissal and in treating the handing over of car keys and the non-calling of the Chairman as confirmations of dismissal. The Court of Appeal, as a first appellate court, re-evaluated the evidence and found the trial court's conclusion justified: the Chairman's conduct was in issue, the respondent testified about it, and the appellant neither called the Chairman nor explained the failure, entitling the trial Judge to draw an adverse inference. The Court further held that the appeal could not challenge the awards since the memorandum of appeal raised no grounds touching them, and submissions could not go beyond the grounds. The appeal was dismissed with costs to the respondent on 2nd February 2024 at Nyeri.

Key legal issues

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01

Whether the respondent's employment was verbally terminated without notice or valid reason, or whether he absconded from duty

Holding

The trial court correctly found, on the evidence, that the Chairman verbally, unfairly and illegally terminated the respondent's employment on 18th October 2015 without reason or notice; the appellant's claim that the respondent absconded was rejected

Reasoning

The respondent testified that the Chairman convened a staff meeting at which he declared the respondent no longer Group General Manager, ordered him to hand over, pack and leave, and refused to give reasons. The appellant's witness admitted the meeting and the handing over of car keys. The appellant did not call the Chairman to rebut this evidence. The trial court accepted the respondent's version and the Court found those findings justified under sections 41 and 43 of the Employment Act.

p. 3
02

Adverse inference from non-calling of the Chairman as a witness

Holding

Since the pleadings made the Chairman's conduct an issue and the respondent testified about it, the trial Judge was entitled to draw the inference that had the Chairman testified he would have given evidence adverse to the appellant's case

Reasoning

The respondent pleaded that the Chairman verbally terminated his employment; the appellant denied it. The respondent testified on the events of 18th October 2015. The appellant, which had the Chairman available, neither called him nor explained the failure to do so. Relying on Stanley Mombo Amuti v Kenya Anti-Corruption Commission, the Court held the trial Judge was entitled to take an adverse view of that failure.

p. 3
03

Whether the awards made by the trial court could be challenged on appeal

Holding

The memorandum of appeal raised no issue regarding the awards; the appellant could not challenge them through written submissions outside the grounds of appeal

Reasoning

The four grounds of appeal attacked the findings of verbal dismissal, not the quantum or the orders under sections 49(1)(c), 35(1)(c) and 51 of the Employment Act. Learned counsel for the appellant sought to challenge the award only in written submissions, but an appeal is confined to its stated grounds, so the challenge was impermissible.

p. 3

Legal principles established

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  • A first appellate court must re-consider and re-evaluate the evidence adduced before the trial court and satisfy itself that the conclusions reached were consistent with the evidence
  • Where a party does not call a witness who could rebut evidence given against that party, and offers no explanation for the failure, the court is entitled to draw an adverse inference that the witness's evidence would have been unfavourable to that party
  • An appellant cannot expand an appeal beyond the grounds in the memorandum of appeal; issues not raised in those grounds cannot be argued through written submissions

Court orders

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  1. 1.The appeal is dismissed
  2. 2.The appellant to pay costs of the appeal

Authorities

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Legislation

  • Employment Act, 2007section 41
  • Employment Act, 2007section 43
  • Employment Act, 2007section 49(1)(c)
  • Employment Act, 2007section 35(1)(c)
  • Employment Act, 2007section 51

Cases cited (2)

  • Sanitam services (EA) Ltd –vs- Rentokil
    [2006] 2 KLR 70
  • Stanley Mombo Amuti –vs- Kenya Anti-Corruption Commission
    [2019] eKLR
On appeal from
Employment and Labour Relations Court of Kenya at Nyeri
Not stated in the judgment
Jurisdiction invoked
First appellate jurisdiction of the Court of Appeal over the ELRC (not expressly cited in the judgment)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (2)

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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, "Brade Gate Holdings Limited v Mwangi (Civil Appeal 92 of 2019) [2024] KECA 1011 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/1011/eng@2024-02-02

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