[2025] KEELRC 1454 (KLR)

[2025] KEELRC 1454 (KLR)

The court found that the Respondent's declaration of redundancy was not genuine but was instead a colourable exercise to remove the Claimant following a failed disciplinary process. The redundancy process did not comply with Section 40 of the Employment Act, as there was no consultation, no prior notice, and no...

Source-derived case information.

Citation
[2025] KEELRC 1454 (KLR)
Parties
Applicant: Dr Stephen Gachie Macharia; Respondent: The Registered Trustees of the Sisters of Mercy (Kenya) Mater Misericordiae Hospital
Court
Employment and Labour Relations Court
Court Station
Employment and Labour Relations Court at Nairobi
Jurisdiction
Kenya
Case Number
Cause 650 of 2020
Procedural Posture
Employment Cause / Judgment
Outcome
Claim allowed in part; termination declared unfair, unlawful and unconstitutional; monetary compensation awarded; reinstatement declined.
Judges
J Rika
Legal Topics
Unfair Termination, Redundancy Procedure, Consultation Requirements, Compensation for Termination, Employment Contracts, Procedural Fairness
Source Language
en
Employment and Labour Unfair Termination Redundancy Procedure Consultation Requirements Compensation for Termination Employment Contracts Procedural Fairness

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Downloadable case file Legal principles 3 Authorities cited 9 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Dr Stephen Gachie Macharia

Applicant

The Registered Trustees of the Sisters of Mercy (Kenya) Mater Misericordiae Hospital

Respondent

Procedural Posture

Employment Cause / Judgment

  1. 1 Whether the termination of the Claimant's contract of employment was illegal, unconstitutional, unprocedural and contrary to the Employment Act 2007.
  2. 2 Whether the Claimant is entitled to reinstatement or alternative remedies for unfair termination.

Ratio Decidendi

The court found that the Respondent's declaration of redundancy was not genuine but was instead a colourable exercise to remove the Claimant following a failed disciplinary process. The redundancy process did not comply with Section 40 of the Employment Act, as there was no consultation, no prior notice, and no payment of redundancy benefits. The evidence showed that the Claimant's role had not suddenly become redundant, and the overlap with the CEO's duties was longstanding and contractually defined. The Respondent's actions were motivated by dissatisfaction with the Claimant's conduct and complaints, not by operational necessity. The court held that the termination was unfair, unlawful,...

Court Disposition

Claim allowed in part; termination declared unfair, unlawful and unconstitutional; monetary compensation awarded; reinstatement declined.

Orders

  • It is declared that termination of the Claimant’s contract by the Respondent was unfair, unlawful and unconstitutional.
  • The Respondent shall pay to the Claimant: notice at Kshs. 1,050,000; severance at Kshs. 1,050,000; leave at Kshs. 980,000; and compensation for unfair termination equivalent of 5 months’ salary at Kshs. 5,250,000 – total Kshs. 8,330,000.