New Kenya Co-operative Creameries v Aminga (Appeal E001 of 2022) [2024] KEELRC 18 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Whether the termination was substantively fair under Sections 43 and 45 of the Employment Act
The appellant failed to demonstrate genuine and reasonable grounds for the termination; generalized audit report conclusions and suspicion were insufficient.
The audit report did not contain any particularized allegation against the respondent personally; charges were collective against him and co-workers. No records of specific dates, times, entries or places of alleged misconduct were availed, and no evidence existed of the promised further investigation. Section 43 requires the employer to prove genuine and reasonable grounds, which suspicion alone cannot satisfy.
Whether the disciplinary procedure complied with Section 41 of the Employment Act and Article 47 of the Constitution
Procedural fairness was breached: the audit report was never supplied, the respondent was not informed of his right to witnesses or a union representative, and the en masse hearing was unfair.
The show-cause letter did not attach the audit report, and the respondent's request for it was never honoured. He encountered the report for the first time at the hearing and could not question its author. The hearing notice did not inform him of his rights to a co-worker or union representative of his choice, and the mass hearing denied individualized consideration, turning the session into a grilling.
Whether the trial court's awards on compensation, notice pay and leave dues were lawful and justified
All awards were upheld as fair and reasonable in the circumstances, considering the respondent's 30 years of service and the absence of terminal dues.
The court applied Section 49(1) and (4) of the Employment Act, weighing the length of service, absence of terminal dues, lack of willingness to re-engage, and the employer's failure to accord a fair hearing. Notice pay followed automatically from the unfair termination, and the leave claim stood because the employer, as custodian of records, produced none to dislodge it. A certificate of service is mandatory under Section 51.
Whether the trial magistrate failed to consider the appellant's evidence
The contention was rejected; the trial magistrate analysed and considered the evidence of both parties before arriving at his decision.
The court found the complaint unfounded on the record: the learned trial magistrate had clearly analysed the evidence adduced by both sides and the rival submissions in his judgment. The only part of the trial judgment reversed was the finding that the procedure applied was lawful, as this court held the unfairness lay in both substance and procedure, not procedure alone.
Legal principles established
#- Suspicion alone does not constitute a genuine and reasonable ground for disciplinary action or termination; it must be backed by evidence.
- Omnibus or collective charges against an employee and co-workers cannot found a lawful disciplinary action or termination.
- An employer's duty in disciplinary proceedings includes supplying the employee with the evidence relied upon and informing him of the right to call witnesses and be accompanied by a union representative of choice.
Court orders
#- 1.The judgment of the lower court be and is hereby upheld.
- 2.This appeal is dismissed in its entirety with costs to the respondent.
- 3.The order on costs by the trial court is upheld.
- On appeal from
- Sotik Principal Magistrate's Court (ELRC)
- PMCC (ELRC) No. 02 of 2018
- Jurisdiction invoked
- First appellate jurisdiction of the Employment and Labour Relations Court over appeals from the subordinate court (Sotik PMCC (ELRC) No. 02 of 2018)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "New Kenya Co-operative Creameries v Aminga (Appeal E001 of 2022) [2024] KEELRC 18 (KLR)", Case Analysis (2024). Appeal against the judgment in Sotik PMCC (ELRC) No. 02 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/18/eng@2024-01-25
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.