Automated Summary
Key Facts
The claimant, Ketty Akinyi Winfred Omondi, was employed by Medisel (Kenya) Limited as a Customer Care Service and Tele Sales Manager from December 14, 2020. She received a redundancy notice on December 28, 2021, and was terminated on January 27, 2022, citing financial losses. The court found the termination unfair due to the employer's failure to prove redundancy justification and procedural non-compliance, including inadequate consultation and incorrect job title in notices. The claimant was awarded Kshs 290,112.50 for compensatory damages, unpaid leave (2.75 days), and underpayments for airtime facilitation.
Issues
- The court assessed the Claimant's entitlement to payment for unutilized leave days (2.75 days), underpayment of airtime facilitation (Kshs 16,500), and compensatory damages (Kshs 265,500) for unfair termination, along with interest on the awarded amount.
- The court determined whether the termination of the Claimant's employment on grounds of redundancy was substantively and procedurally fair under the Employment Act, including compliance with notice periods, consultation requirements, and selection criteria.
Holdings
- The Claimant was granted the costs of the suit, with no specific amount detailed in the judgment.
- The Claimant was awarded compensatory damages of Kshs 265,500 for unfair termination, considering the relatively short employment duration.
- The Claimant was compensated Kshs 8,112.50 for 2.75 unutilized leave days, as the Respondents failed to prove payment was made.
- Interest was awarded on the total amount at court rates from the judgment date until full payment.
- The total award amounted to Kshs 290,112.50, including compensatory damages, unpaid leave, and airtime facilitation.
- The court declared the Claimant's termination unfair and unlawful as the Respondents failed to prove substantive justification for redundancy and did not comply with procedural requirements under the Employment Act.
- The Claimant received Kshs 16,500 for unpaid airtime facilitation over 11 months, as evidence showed only one payment was made.
Remedies
- The Claimant is awarded unpaid overtime for 11 months in the sum of Kshs. 16,500.00.
- Declaration that the termination of the Claimant from employment was unfair and unlawful.
- The Claimant shall have the costs of the suit.
- The Claimant is awarded the sum of Kshs. 265,500.00 being compensatory damages for unfair termination.
- Interest on the total award of Kshs. 290,112.50 at court rates from the date of Judgment until payment in full.
- The Claimant is awarded unpaid leave (2.75 days) in the sum of Kshs. 8,112.50.
Monetary Damages
290112.50
Legal Principles
The court applied the principle that termination by redundancy must meet both substantive justification (e.g., operational requirements due to financial losses) and procedural fairness (e.g., proper notice, consultation, and selection criteria). The employer failed to prove substantive justification for the redundancy and did not adequately comply with procedural requirements, leading to an unfair termination.
Precedent Name
- Lebo and 331 others v Kenya Power & Lighting Co. Ltd
- Ngaira & 126 others v Sendwave Limited
- Gerrishom Mukhutsi Obayo v Dsv Air and Sea Limited
- Cargill Kenya Limited v Mwaka & 3 others
- Kenya Airways Limited v Aviation & Allied Workers Union Kenya & 3 others
- Mary Nyawira Karimi v Pure Circle (K) Limited
- Muraguri v Mpala Research Center & 2 others
- Barclays of Kenya Ltd & another v Gladys Muthoni & 20 others
Cited Statute
- Employment Act
- Civil Procedure Act
Judge Name
Stella Rutto
Passage Text
- To this end, it is apparent that the Respondents did not substantially comply with the provisions of Section 40 (1) of the Employment Act...procedurally fair within the meaning of Section 40(1) of the Act.
- Indeed, lack of evidence to prove the manner in which the Respondents applied the selection criteria...leaves room for doubt as to whether the selection of the Claimant for purposes redundancy, was undertaken objectively.
- There are two broad aspects of this definition...Determination of these two aspects will determine the first issue of whether or not the redundancy in this case was necessary.