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ELRCDismissedConsolidated Appeals ELRC Nos. E19/2022; E20/2022; E21/2022 (arising from Ruiru SPMELRC Nos. E15/2021, E16/2021, E17/2021, E18/2021)· [2023] KEELRC 2076 (KLR)

Sana Industries Company Limited v Lolmodooni (Appeal 119 of 2022) [2023] KEELRC 2076 (KLR)

Employment and Labour Relations Court
24 August 2023
1,949 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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DHL lost its appeal because it never appealed the test-suit judgment on liability and failed to file the trial court's certified proceedings, so the unfair dismissal awards stand.

What this practically means

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Executive summary

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This is a judgment of the Employment and Labour Relations Court at Nairobi (Mathews N. Nduma, J) dismissing consolidated appeals E19/2022, E20/2022 and E21/2022 against the judgment of the Principal Magistrate, Ruiru (J.A. Agonda) delivered on 23rd June 2023, which found the summary dismissal of security guards unlawful and unfair and awarded them 12 months' salary compensation, one month's salary in lieu of notice, and terminal benefits (leave pay, 16 days' salary and refund of unremitted union dues). By consent dated 8th February 2022, Ruiru SPMELRC No. E17/2021 had been designated the test suit on the fairness of termination, its determination to bind the other matters. The appellant settled the test-suit decretal amount and never appealed that judgment. The respondent objected that, with no appeal against the test suit and its proceedings omitted from the record of appeal, the Court could not re-evaluate the oral evidence on which the trial court relied. The Court agreed: the test-suit determination bound the consolidated appeals; the duty to compile a complete record rested solely on the appellant; and without the certified proceedings there was no basis for faulting the trial magistrate's findings on liability under Sections 43 and 41 of the Employment Act, 2007, or on the awards of compensation and terminal benefits. The Court confirmed the finding of unlawful and unfair dismissal, upheld the trial court's judgment without variation, dismissed the appeal in its entirety, and awarded the respondents costs before both the trial court and the ELRC.

Key legal issues

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01

Whether an appeal on liability is competent where the appellant never appealed the test-suit judgment binding all consolidated matters

Holding

There is no valid appeal on liability; the unappealed test-suit determination binds the consolidated appeals and must be upheld.

Reasoning

The parties by consent designated Ruiru SPMELRC No. E17/2021 as the test suit on the fairness of termination, with its determination to apply to E15, E16 and E18 and the subsequent appeals. The appellant settled the decretal amount in the test suit and never appealed or set aside the consent. In consolidated proceedings, the determination of the test suit binds all other suits. Consequently, the Court cannot revisit liability, which stands as determined and unchallenged.

p. 3
02

Effect of failure to file certified proceedings of the test suit in the record of appeal

Holding

Without the test-suit proceedings, the Court cannot re-evaluate the evidence relied on by the trial magistrate and cannot fault the judgment; the appeal fails.

Reasoning

The trial court's judgment was founded on the testimony of three witnesses heard in the test suit, which proceedings were absent from the record of appeal. The duty to assemble a complete record rests with the appellant. Lacking that record, the Court could not discharge its first-appeal duty to re-evaluate the evidence, and the appellant's grounds of appeal, including its own narrative of the theft incident, were unsupported by the record.

p. 3
03

Whether the trial magistrate erred in awarding 12 months' compensation, notice pay and terminal benefits

Holding

The awards were upheld; the appellant placed nothing before the Court to demonstrate misdirection.

Reasoning

The trial magistrate found the claimants summarily dismissed without notice, terminal benefits or a certificate of service, having been wrongfully accused of theft, and awarded maximum compensation under Section 49 of the Employment Act. In the absence of the trial record, the appellate Court could not assess whether the discretion was wrongly exercised and accordingly upheld the compensation and terminal benefits awards (leave pay, 16 days' salary, union dues refund) and dismissed the appeal on those heads too.

p. 4

Legal principles established

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  • In a first appeal, the appellate court has a duty to re-evaluate, re-analyse and re-consider the evidence adduced before the trial court and draw its own conclusions, making due allowance for not having seen the witnesses.
  • In consolidated suits and test-suit arrangements, the determination in the test suit binds all other suits with common questions of law or fact, and a party who has not appealed against that determination remains bound by it.
  • The responsibility to ensure a proper record of appeal, including certified proceedings relied on by the trial court, rests solely with the appellant; without it, there is no basis for faulting the judgment.

Court orders

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  1. 1.Dismissal of the consolidated appeals (E19/2022, E20/2022 and E21/2022) in their entirety
  2. 2.Confirmation of the trial Court's finding that the dismissal of the respondents was unlawful and unfair
  3. 3.Upholding the judgment of the trial Court without any variation, including the awards of 12 months' salary compensation, one month's salary in lieu of notice and terminal benefits
  4. 4.Costs of the suit before both the trial Court and this Court awarded to the respondents

Authorities

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Legislation

  • Employment Act, 2007Section 43(1) and (2)
  • Employment Act, 2007Section 41

Cases cited (4)

  • Gitobu Imanyara & 2 Others -vs- Attorney General
    [2016] eKLR
  • Fredrick Otieno -vs- Pamela Awino
    [2013] eKLR
  • Benjamin Chepkairor –vs- Kenya Urban Roads Authority
    [2010] eKLR
  • Joseph Ondieki Akuma –vs- Tandu Alarm Systems Limited
    [2020] eKLR
On appeal from
Principal Magistrate's Court, Ruiru
Ruiru SPMELRC Nos. E15/2021; E16/2021; E17/2021 and E18/2021
Jurisdiction invoked
Appellate jurisdiction of the Employment and Labour Relations Court over appeals from the subordinate courts (ELRC) - first appeal against judgment of Principal Magistrate, Ruiru

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Sana Industries Company Limited v Lolmodooni (Appeal 119 of 2022) [2023] KEELRC 2076 (KLR)", Case Analysis (2023). Consolidated Appeals ELRC Nos. E19/2022; E20/2022; E21/2022 (arising from Ruiru SPMELRC Nos. E15/2021, E16/2021, E17/2021, E18/2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2076/eng@2023-08-24

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