[2022] KEELRC 13242 (KLR)

[2022] KEELRC 13242 (KLR)

The court found that the 1st respondent terminated the claimants' employment on account of redundancy but failed to comply with the mandatory requirements of Section 40 of the Employment Act, including proper notice and severance pay. The termination was therefore both substantively and procedurally unfair and...

Source-derived case information.

Citation
[2022] KEELRC 13242 (KLR)
Parties
Applicant: Robert Njuguna Karanu; Respondent: Economic Housing Group; Respondent: Mali Rasili Limited
Court
Employment and Labour Relations Court
Court Station
Employment and Labour Relations Court at Nakuru
Jurisdiction
Kenya
Case Number
Cause 168 of 2017
Procedural Posture
Employment Cause / Judgment
Outcome
Judgment for the claimants against the 1st respondent; claims against the 5th respondent dismissed; reliefs awarded as specified; costs to the claimants.
Judges
DN Nderitu
Legal Topics
Redundancy Procedure, Unfair Termination, Severance Pay, Notice Pay, Statutory Deductions, Holding Company Liability
Source Language
en
Employment and Labour Redundancy Procedure Unfair Termination Severance Pay Notice Pay Statutory Deductions Holding Company Liability

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Summary, issues, holding and outcome

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Parties

Robert Njuguna Karanu

Applicant

Economic Housing Group

Respondent

Mali Rasili Limited

Respondent

Procedural Posture

Employment Cause / Judgment

  1. 1 Whether the termination of the claimants by the 1st respondent was unfair and unlawful.
  2. 2 Whether the 5th respondent (holding company) is jointly and severally liable with the 1st respondent for the claimants' dues.
  3. 3 Whether the claimants are entitled to the reliefs sought and to what extent.

Ratio Decidendi

The court found that the 1st respondent terminated the claimants' employment on account of redundancy but failed to comply with the mandatory requirements of Section 40 of the Employment Act, including proper notice and severance pay. The termination was therefore both substantively and procedurally unfair and unlawful. The 5th respondent, as holding company, was not a party to the employment contracts and there was no evidence of fraud, misconduct, or direct involvement in the claimants' employment or termination. Accordingly, the 5th respondent could not be held liable for the acts of the 1st respondent. The claimants were entitled to salary arrears up to the effective date of...

Court Disposition

Judgment for the claimants against the 1st respondent; claims against the 5th respondent dismissed; reliefs awarded as specified; costs to the claimants.

Orders

  • Declaration that the termination of the claimants by the 1st respondent was unfair and unlawful.
  • The 1st respondent is solely liable for the awards granted to the claimants; the 5th respondent is not liable.