Brandlife Kenya Limited v Anne Koskei
The bottom line
#Kenya's Court of Appeal confirmed that employers who skip fair disciplinary procedures and cut salaries without written consent will pay heavily for unlawful dismissals.
What this practically means
#Executive summary
#Key legal issues
#Procedural fairness of the disciplinary process under section 41 of the Employment Act
The disciplinary process was improper and unfair because the respondent was not supplied with the relevant documents before the hearing and the sole panelist did not have the documents she relied on.
The court noted the respondent's written defence to the show cause letter showing she sought particulars that were never availed. The hearing was conducted by RW2 as the sole panelist, and an examination of the hearing proceedings showed that the respondent was not supplied with the relevant documents before the hearing, nor did RW2 have the documents the respondent relied on. The court therefore agreed with the trial judge that the process was neither proper nor fair, upholding the finding that a County Manager could not properly be subjected to a one-on-one session with a director lacking relevant information.
Validity of the reasons for termination under section 43 of the Employment Act
The appellant did not prove the existence of a genuine reason to terminate the respondent's employment; the charge of misrepresentation of the budget and profit margin was unsupported by any communication in the record.
The first charge alleged that on 24th February 2020 the respondent misrepresented the approved budget and profit margin. The respondent denied making any such misrepresentation, and no such communication appeared in the record of appeal or supplementary record. The trial court had found that the respondent gave reasonable projections and that no loss was proved, the 18% profit margin having been achieved. On re-appraisal, the Court found the trial court correctly held that no genuine reason for termination was proved.
Lawfulness of the unilateral 40% salary reduction
The respondent's email was merely a cost-cutting suggestion; she did not consent to a 40% reduction of her own salary, and the deduction was unlawful.
The appellant argued that the salary cut was proposed by the respondent herself and effected with her consent, and that she did not challenge it until filing the claim. The Court, evaluating the record, held that as County Manager the respondent merely suggested how the company could cut costs by reducing employees' salaries. There was no consent between the parties to reduce her salary, nor was the reduction captured in the employment contract, so the trial judge's award of salary arrears was correct.
Entitlement to pay in lieu of notice under section 10(3)(b) of the Employment Act
Because the contract required two months' notice from the employee but was silent on the employer's notice, the employer had to give the same length of notice as it required of the employee; the award of one month's salary in lieu of notice was upheld.
Section 10(3)(b) of the Employment Act mandatorily requires the contract to contain the length of notice the employee is obliged to give and entitled to receive. The appointment letter was expressive that the respondent should give two months' notice or two months' salary in lieu, but was silent on the notice the appellant should give. The Court applied the maxim 'What is good for the goose is good for the gander' and found no reason to fault the award of one additional month's salary in lieu of notice.
Entitlement to payment for 21 days' accrued annual leave
The phrase 'may not normally be carried forward' in the appointment letter is not mandatory, and under section 28 of the Employment Act untaken leave must be taken within eighteen months; the leave award was upheld.
The appointment letter provided 21 working days' annual leave which 'may not normally be carried forward to the next year.' The Court read the word 'may' as connoting that carry-forward is not absolutely prohibited, but the instances where it could happen were not stipulated in the letter. Guided by section 28 of the Employment Act, which requires the remainder of annual leave to be taken within eighteen months of the leave-earning period, the Court found the trial court correctly awarded 21 days' salary in lieu of leave not taken.
Adequacy of the 5 months' salary compensation for unfair termination under section 49 of the Employment Act
The award of five months' pay was properly within the judge's discretion under sections 49 and 50, considering the circumstances including termination during pregnancy and postnatal period.
The Court reiterated that remedies for unfair termination include the equivalent of up to twelve months' gross monthly salary, and that section 49(4) requires consideration of the employee's wishes, circumstances of termination, employee contribution, length of service, and mitigation. The trial judge had considered the aggravating circumstances: the seniority of the job, the unfair process during pregnancy, the salary reduction while expectant, and the anguish suffered. The appellant established no basis for the appellate court to interfere with that exercise of discretion.
Legal principles established
#- An employer must comply with section 41 of the Employment Act by supplying the employee with the relevant documents and particulars before a disciplinary hearing; a hearing conducted by a sole panelist without the relevant documents being exchanged is not proper and fair.
- The employer bears the burden under section 43 of proving genuine and valid reasons for termination; failure to prove the grounds renders the termination unfair.
- An employer is bound to give the same length of notice before terminating employment as the contract requires of the employee, per section 10(3)(b) of the Employment Act.
Court orders
#- 1.The appeal is dismissed with costs to the respondent
- On appeal from
- Employment and Labour Relations Court
- Not stated (statement of claim dated 7th May 2020)
- Jurisdiction invoked
- First appeal to the Court of Appeal under rule 31 (1) (a) of the Court of Appeal Rules, 2022
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (2)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Ndlo & 17 others v Brinks Security Services Limited (Appeal E272 of 2024) [2025] KEELRC 1928 (KLR)[2025] KEELRC 1928 (KLR)30 Jun 2025applied
- Onago v Ufanisi Freighters (K) Limited (Appeal E212 of 2024) [2025] KEELRC 993 (KLR)[2025] KEELRC 993 (KLR)27 Mar 2025applied
Cite this brief
#Cite this brief
Caselaw, "Brandlife Kenya Limited v Anne Koskei", Case Analysis (2025). Not stated in the judgment (memorandum of appeal dated 14th February 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2025/100/eng@2025-01-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.