[2023] KEELRC 387 (KLR)

[2023] KEELRC 387 (KLR)

The court found that the claimant was an employee of the respondent, engaged under an oral contract, and that the respondent failed to comply with the mandatory redundancy procedures under Section 40 of the Employment Act. Although the parties negotiated a mutual separation and the claimant received USD 35,000,...

Source-derived case information.

Citation
[2023] KEELRC 387 (KLR)
Parties
Applicant: Robert Mng’anya; Respondent: Smart Banking Solutions Ltd
Court
Employment and Labour Relations Court
Court Station
Employment and Labour Relations Court at Nairobi
Jurisdiction
Kenya
Case Number
Cause 142 of 2020
Procedural Posture
Employment Cause / Judgment
Outcome
Judgment for the claimant in part.
Judges
JK Gakeri
Legal Topics
Unfair Termination, Redundancy Procedure, Oral Employment Contracts, Employee Status, Compensation for Termination
Source Language
en
Employment and Labour Unfair Termination Redundancy Procedure Oral Employment Contracts Employee Status Compensation for Termination

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Parties

Robert Mng’anya

Applicant

Smart Banking Solutions Ltd

Respondent

Procedural Posture

Employment Cause / Judgment

  1. 1 Whether the claimant was an employee of the respondent and the date of employment.
  2. 2 Whether the claimant's employment was unlawfully terminated or he was declared redundant.
  3. 3 Whether the claimant is entitled to the reliefs sought.

Ratio Decidendi

The court found that the claimant was an employee of the respondent, engaged under an oral contract, and that the respondent failed to comply with the mandatory redundancy procedures under Section 40 of the Employment Act. Although the parties negotiated a mutual separation and the claimant received USD 35,000, there was no executed agreement waiving further claims, and the redundancy was not formalized in accordance with the law. The court held that the termination was therefore unfair and unlawful. The claimant was not entitled to further salary arrears or leave pay, as these had been settled, but was entitled to a declaration of unfair termination, one month's salary as compensation,...

Court Disposition

Judgment for the claimant in part.

Orders

  • Declaration that termination of the claimant's employment on account of redundancy was unfair and unlawful.
  • Respondent to pay the equivalent of one (1) month's salary, USD 7,000, to the claimant.