Automated Summary
Key Facts
Jane Mwololo was employed by Amazon Motors Limited from 1982 until her termination in 2013 due to restructuring. The court found the termination unfair as the employer failed to comply with Section 40(1) of the Employment Act 2007, including providing notice and engaging in consultation. The judgment awarded her severance pay, notice pay, SACCO contributions, leave pay, damages for unlawful termination, and outstanding gratuity totaling Kshs.665,880/=. The court also issued a Certificate of Service and ordered the respondent to pay costs and interest.
Issues
- The court examined whether the employer presented sufficient evidence to substantiate their claim of financial difficulties, which they cited as the reason for restructuring and redundancy, as required by legal standards for fair termination.
- The court assessed if the employer adhered to the notice and consultation obligations under Section 40(1)(b) and (c) of the Employment Act, which mandate written notice and consideration of seniority and employee reliability in redundancy decisions.
- The court determined whether the termination of the claimant's employment by Amazon Motors Limited was lawful under Section 40 of the Employment Act 2007, considering the employer's compliance with legal procedures for redundancy.
- The court evaluated whether the severance pay and other terminal benefits, including notice pay, leave days, and gratuity, were appropriately calculated and disbursed in accordance with the Employment Act and the claimant's terms of employment.
Holdings
- The court ordered the Respondent to pay 1 month's salary in lieu of notice, amounting to Kshs. 40,508.
- The Respondent admitted to deducting Kshs. 25,375 from the Claimant's SACCO contributions, which was pending and required repayment.
- The court awarded payment for 26 leave days, equivalent to the Claimant's monthly salary of Kshs. 40,508.
- The court awarded damages for unlawful termination at 12 months' salary, totaling Kshs. 486,096.
- The court mandated the issuance of a Certificate of Service to the Claimant.
- The Respondent was required to pay the costs of the suit plus interest at court rates from the date of judgment.
- The court awarded the Claimant severance pay at the rate of 18 days per year worked, totaling Kshs. 753,448.80, with a balance of Kshs. 41,857.80 remaining unpaid.
- The Respondent was ordered to pay outstanding gratuity amounting to Kshs. 31,536.
Remedies
- Issuance of Certificate of Service.
- Respondent to pay costs of the suit plus interest at Court rates from the date of judgment.
- 12 months' salary as damages for unlawful termination: Kshs.40,508 x 12 = 486,096/=
- Total awarded amount: Kshs.665,880/=
- Outstanding gratuity: Kshs.31,536/=
- 26 leave days: Kshs.40,508/=
- Pending SACCO contribution deducted from Claimant and admitted by the Respondent in their pleadings: Kshs.25,375/=
- Severance pay at the rate of 18 days for each year worked being 18/30 x 40,508 x 31 = 753,448.80 less what was paid 711,591/=. Balance owing is 41,857.80.
- 1 month's salary in lieu of notice: Kshs.40,508/=
Monetary Damages
665880.80
Legal Principles
The court found that the Respondent breached the principles of natural justice and good industrial relations practice by failing to provide adequate notice, consultation, and adherence to statutory redundancy procedures under Section 40(1) of the Employment Act 2007. The judgment emphasizes the requirement for employers to engage in meaningful dialogue and follow legal guidelines during restructuring, as established in the ILO Convention and precedent cases.
Precedent Name
Kenya Airways Limited vs. Aviation and Allied Workers Union Kenya & 3 others
Cited Statute
Employment Act 2007
Judge Name
Hellen S. Wasilwa
Passage Text
- The court awards the Claimant severance pay, notice pay, SACCO contributions, leave days, damages, and gratuity totaling Kshs.665,880/=
- I find the termination as a whole unfair, wrongful and in breach of the law.
- None of the provisions listed above were ever followed before the Claimant's services were terminated.