[2023] KEELRC 12 (KLR)

[2023] KEELRC 12 (KLR)

The court found that the respondent failed to comply with the mandatory procedural requirements for redundancy under section 40 of the Employment Act. There was no evidence of objective selection criteria, no proper notice to the claimants or the labour officer, and no meaningful consultation or attempt to find...

Source-derived case information.

Citation
[2023] KEELRC 12 (KLR)
Parties
Applicant: Alan John Roberts; Applicant: Raphael Devantier; Applicant: Gerard Jan Hofhuis; Applicant: Alexander Pavlos; Respondent: Equity Bank Kenya Ltd
Court
Employment and Labour Relations Court
Court Station
Employment and Labour Relations Court at Nairobi
Jurisdiction
Kenya
Case Number
Cause 652 of 2017
Procedural Posture
Employment Cause / Judgment
Outcome
Claim by 1st, 2nd, and 3rd claimants allowed in part; 4th claimant's suit dismissed.
Judges
AN Mwaure
Legal Topics
Redundancy Procedure, Unlawful Termination, Consultation Requirements, Selection Criteria, Employment Contracts, Discrimination Claims
Source Language
en
Employment and Labour Redundancy Procedure Unlawful Termination Consultation Requirements Selection Criteria Employment Contracts Discrimination Claims

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Parties

Alan John Roberts

Applicant

Raphael Devantier

Applicant

Gerard Jan Hofhuis

Applicant

Alexander Pavlos

Applicant

Equity Bank Kenya Ltd

Respondent

Procedural Posture

Employment Cause / Judgment

  1. 1 Whether the 1st to 3rd claimants were unlawfully and unfairly terminated on account of redundancy.
  2. 2 Whether the respondent followed the statutory procedure for redundancy under section 40 of the Employment Act.
  3. 3 Whether the 4th claimant was coerced to resign and whether his contract was breached.

Ratio Decidendi

The court found that the respondent failed to comply with the mandatory procedural requirements for redundancy under section 40 of the Employment Act. There was no evidence of objective selection criteria, no proper notice to the claimants or the labour officer, and no meaningful consultation or attempt to find alternative employment. The termination letters and notices merely communicated a decision already made, denying the claimants an opportunity to engage or mitigate the effects of redundancy. The court held that even if there was a valid reason for redundancy, the lack of procedural fairness rendered the termination of the 1st to 3rd claimants unlawful and wrongful. For the 4th...

Court Disposition

Claim by 1st, 2nd, and 3rd claimants allowed in part; 4th claimant's suit dismissed.

Orders

  • 1st claimant awarded damages for unlawful termination equivalent to three months' salary (USD 33,000) and any unpaid pension to be paid.
  • 2nd claimant awarded damages for unlawful termination equivalent to three months' salary (USD 40,500) and any unpaid pension to be paid.