Automated Summary
Key Facts
The case involves Betty Munanie Mbatha and Kenya Airline Pilots Association challenging Jambo Jet Limited's redundancy of Mbatha in November 2020. The employer cited COVID-19 pandemic impacts as justification for terminating 50 employees. Key procedural flaws included: (1) failure to provide the 30-day notice of intended redundancy to the employee/union as required by Section 40 of the Employment Act; (2) no employee-specific redundancy criteria documentation; (3) lack of consultation with affected employees. The court found the termination procedurally unfair despite acknowledging the pandemic's impact on the airline industry. The employee was awarded 3 months' salary (Kshs 1,544,790) for unfair dismissal and Kshs 2,059,720 in terminal dues, with Kshs 1,816,648 already paid.
Issues
- The court found that the Claimant did not sufficiently prove a violation of her rights under Articles 41 (fair labor practice) and 47 (fair administrative action) of the Constitution. The termination process was deemed inadequate for constitutional claims but addressed under the Employment Act.
- The court determined that the 1st Claimant's termination was unjustified and procedurally flawed, leading to a finding of unfair termination under the Employment Act. The claim for constitutional violations was not sufficiently proven, and the claimant was awarded 3 months' compensation and terminal dues, minus amounts already paid.
- The court ruled that the Claimants are entitled to 3 months' compensation for unfair dismissal and outstanding terminal dues. Damages for breach of legitimate expectation were denied, and the total award was adjusted to account for payments already made.
Holdings
- The Claimant was awarded 3 months' compensation for unfair dismissal (Kshs 1,544,790/.) and terminal dues (Kshs 2,059,720/.) totaling Kshs 3,604,510/. After subtracting already-paid terminal dues (Kshs 1,816,648/.), the net award is Kshs 1,787,862/. The Claimant is also entitled to costs of the suit.
- The court determined that the Claimant did not sufficiently demonstrate a violation of constitutional rights under Articles 41 and 47. The termination's procedural flaws were addressed through employment law rather than constitutional claims.
- The court found that the 1st Claimant's termination was unjustified and procedurally flawed, constituting unfair termination under section 45 of the Employment Act. The Respondent failed to provide sufficient evidence of compliance with statutory redundancy procedures, including 30-day prior notification and consultation.
Remedies
- The court awarded 3 months' compensation for unlawful dismissal, calculated as three months' salary (Kshs 1,544,790/=), with interest at court rates from the judgment date until full payment.
- The 1st Claimant was awarded the costs of the suit, in addition to the compensation and terminal dues.
- The court determined the 1st Claimant was entitled to terminal dues of Kshs 2,059,720/=, comprising severance pay (15 days' salary for two years of service) and three months' notice pay, net of Kshs 1,816,648/= already paid.
Monetary Damages
1787862.00
Legal Principles
- The court emphasized the principle of natural justice, particularly the right to be heard, in evaluating the procedural fairness of the respondent's redundancy process. It found that the respondent failed to provide the claimant with adequate notice (30 days prior to termination) and did not allow her an opportunity to respond or challenge the redundancy decision as mandated by section 40 of the Employment Act.
- The claimant argued that her legitimate expectation of continued employment was violated due to the respondent's failure to follow statutory procedures. The court acknowledged this expectation but limited relief to compensation under the Employment Act rather than constitutional damages, noting that the termination was not egregious enough to warrant constitutional violations.
Precedent Name
- Anarita Karimi Njeru vs Attorney General
- Kenya Airways Limited vs. Aviation and Allied Workers Union of Kenya and 3 Others
- Iyego Farmers' Co-operative Sacco vs Kenya Union of Commercial Food and Allied Workers
- Thomas De La Rue(K) Ltd versus David Opondo Omutelema
- Gerrishom Mukhutsi Obayo -versus- Dsv Air and Sea Ltd
- Hesbon Ngaruiya Waigi -v- Equitorial Commercial Bank Limited
- Cargill Kenya Limited v Mwaka & 3 others (Civil Appeal 54 of 2019)
- Alice Ndaani & 5 Others v Mwalimu National Savings and Credit Co-operative Society Limited
- KUDHEIHA v the Aga Khan University Hospital Nairobi
- Transport Workers Union v Glory Driving School
- Kenya Union of Journalists and Allied Workers v Nation Media Group
Cited Statute
- Employment Act (Kenya)
- Fair Administrative Action Act (Kenya)
- Labour Relations Act, 2007 (Kenya)
Judge Name
NJ Abuodha
Passage Text
- The Court will however take into account the amounts already paid to the Claimant as her terminal dues being Kshs. 1,434,011.29/.
- The 1st Claimant is entitled to three months' notice pay of Kshs 1,544,790/= to equal to Kshs 2,059,720/=.
- The Court found that the 1st Claimant's termination was unjustified and procedurally flawed hence unfair termination within the meaning of section 45 of the Employment Act.