NAIROBI, Kenya — The Court of Appeal has upheld a Sh765,000 compensation award to former employee Peter Njoroge Chege after finding that Koppert Biological Systems Limited unlawfully terminated his employment without granting him a fair disciplinary hearing.
A three-judge bench comprising Justices William Korir, L.M. Ndolo, and Ahmed Issack Hassan dismissed the company’s appeal against a decision by the Employment and Labour Relations Court (ELRC), which had found that Mr Chege was unfairly dismissed in violation of the Employment Act.
Mr Chege joined Koppert Biological Systems Limited on June 5, 2014, as a Technical Sales Representative. His employment ended on July 6, 2015, after slightly more than a year at the company.
The dispute arose from the circumstances surrounding his exit.
Mr Chege told the court that on the day his employment ended, the company’s General Manager and other officials instructed him to surrender company property and leave the workplace immediately.
He argued that he was dismissed without notice, without being informed of any allegations against him, and without being taken through a disciplinary process.
The company, however, denied unlawful termination, maintaining that Mr Chege had deserted duty and that the alleged desertion amounted to gross misconduct warranting summary dismissal.
The Court of Appeal rejected the argument, holding that desertion cannot be established merely by claiming that an employee failed to report to work.
The judges said an employer must provide evidence showing that an employee intended to permanently abandon employment.
“Desertion cannot simply be alleged without evidence showing that an employee intended not to return to work,” the court held.
The appellate court found that Koppert had not demonstrated any efforts to contact Mr Chege, seek an explanation for his absence, or issue a notice requiring him to respond to the allegations.
The judges further noted that the company’s own actions contradicted its claim that Mr Chege had deserted duty.
The court observed that after receiving a demand letter from Mr Chege’s lawyers, the company stated that his employment had been terminated on July 6, 2015, over alleged gross misconduct.
The company also published a notice in the Daily Nation indicating that he had ceased being an employee from that date.
According to the court, these actions showed that the employer had already made a decision to terminate the employment relationship instead of treating the matter as a case of desertion.
The judges held that where an employer alleges misconduct, the employee must be informed of the accusations and allowed an opportunity to respond before termination.
The decision was anchored on Section 41 of the Employment Act, which requires employers to follow a fair procedure before dismissing workers.
The court also upheld the compensation awarded by the ELRC, rejecting the company’s argument that the amount was excessive.
The Sh765,000 award consisted of one month’s salary in lieu of notice, payment for six days worked in July 2015, accrued leave benefits, and compensation equivalent to eight months’ salary for unfair termination.
While the appellate court noted that trial courts should clearly explain the factors considered when awarding compensation, it found no reason to interfere with the ELRC’s assessment.
