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Case Brief · caselaw.co.ke
Court of AppealDismissedCivil Appeal 49 of 2018

Nancy Cheptanui v Rift Valley Bottlers Company Limited

Court of Appeal
19 May 2022
2,167 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal upheld a fair dismissal, ruling employees who skip bringing a companion to disciplinary hearings can't later claim unfair process.

What this practically means

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Executive summary

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The Court of Appeal at Nakuru (Nambuye, Sichale and ole Kantai, JJA) dismissed this first appeal against the judgment of the Employment and Labour Relations Court at Kericho (Njagi Marete, J.) which had dismissed the appellant's claim for unfair termination. The appellant, employed from 1992 and rising to Stores Supervisor, was terminated on 22nd October 2015 after a disciplinary process, and claimed Ksh.15,333,083.40 in terminal benefits and compensation. On appeal she argued procedural fairness was breached because the invitation to the disciplinary hearing did not indicate she could be accompanied by another employee, and that there were no performance indicators or guidance on remedying poor performance. Applying Rule 29 of the Court's rules and the standard in Peters v Sunday Post, the court reappraised the evidence. It found the disciplinary record showed repeated warnings, show-cause letters over procurement breaches and stock variances causing a loss of Ksh.2,188,495, and a properly convened disciplinary hearing. The court presumed the appellant chose not to bring a companion to the hearing and held that procedural fairness was satisfied and the termination substantively justified. On remedies, it held that loss of earnings from termination to retirement is not contemplated by the Employment Act, and that no compensation under Section 49 was due since the termination was lawful. The appeal was dismissed with costs to the respondent. The decision affirms the trial court's judgment in its entirety.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the termination of the appellant's employment complied with the procedural fairness requirements of Section 41 of the Employment Act, including the right to be accompanied at the disciplinary hearing
  2. 2.Whether the termination was substantively justified under Sections 43, 44 and 45 of the Employment Act
  3. 3.Whether the trial Judge erred in failing to compute an award of compensation under Section 49 of the Employment Act

Key legal issues

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01

Procedural fairness under Section 41 of the Employment Act

Holding

The termination complied with Section 41: the appellant was given warnings, show-cause letters, a disciplinary hearing, and an opportunity to respond; her failure to bring a fellow employee was her own choice.

Reasoning

The court reviewed the disciplinary record: a warning letter, show-cause letters over stock variances and underperformance, an invitation to a disciplinary committee hearing, and findings by the committee. It presumed the appellant elected not to bring a companion since the hearing report indicated no witness attended, and found procedural fairness was met.

02

Substantive justification for termination

Holding

The termination was substantively justified by the appellant's poor disciplinary record, including financial loss of Ksh.2,188,495 during her watch and insubordination.

Reasoning

The court found the record littered with disciplinary issues: engaging a transporter without procurement authorization, stock variances causing loss, abandonment of duties, and failure to provide fuel causing a three-day plant shutdown. Repeated chances to improve were not taken, justifying termination.

p. 3
03

Remedies under Section 49 of the Employment Act

Holding

No compensation was due because the termination was lawful; loss of earnings to retirement is not a remedy under the Act.

Reasoning

The court held that remedies such as reinstatement within three years or compensation up to twelve months' salary are available only upon a finding of unfair or unlawful termination. Having found the termination lawful, the trial court had no duty to compute speculative compensation.

Legal principles established

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  • On a first appeal, the Court of Appeal must reappraise and re-evaluate the evidence and come to its own conclusions of fact.
  • Procedural fairness under Section 41 of the Employment Act is satisfied where the employer explains the reasons for termination, gives the employee an opportunity to respond, and the employee is entitled to be accompanied; an employee who chooses not to bring a companion cannot later complain of the absence of one.
  • Loss of earnings from termination to retirement is not a remedy contemplated by the Employment Act; a court finding lawful termination has no duty to award speculative relief.

Court orders

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  1. 1.Appeal dismissed
  2. 2.Costs of the appeal awarded to the respondent

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority
majority
majority
On appeal from
Employment and Labour Relations Court of Kenya at Kericho
ELRC Cause No. 18 of 2016
Jurisdiction invoked
First appeal to the Court of Appeal under the rules of the Court (Rule 29), from the Employment and Labour Relations Court

Relief refused

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Terminal benefits and compensation including loss of earnings from date of termination to retirement (Ksh.15,333,083.40 claimed)

Termination was lawful; the Employment Act does not envisage loss of earnings to retirement as a remedy

p. 4

Costs

This appeal has no merit and we dismiss it with costs to the respondent.

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

Rule 29 of the rules of this Court requires that we reappraise and re-evaluate the evidence and come to our own conclusions of fact.
p. 1Duty of first appellate court
We are prepared in the circumstances of the case to presume and hold that the appellant chose not to have another employee or representation to be present at the meeting.
p. 3Right to be accompanied at disciplinary hearing
The trial court in our case having found that termination of employment was lawful had no duty to navigate a speculative journey not contemplated by the Act.
p. 4Remedies for termination
This appeal has no merit and we dismiss it with costs to the respondent.
p. 4Final orders and costs

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, "Nancy Cheptanui v Rift Valley Bottlers Company Limited", Case Analysis (2022). Civil Appeal 49 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2022/824/eng@2022-05-19

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