Isabella Harusi Shehe v Branch Secretary, Kenya National Union Of Teachers (Kilifi Branch) & another [2013] KEELRC 683 (KLR)
The bottom line
#A Kenyan court ruled a KNUT Kilifi employee's redundancy was fair, but she was still owed statutory severance and admitted arrears totalling over Kshs 671,000.
What this practically means
#Executive summary
#Key legal issues
#Whether the redundancy termination was fair and lawful
The termination was fair, being substantially compliant with section 40 of the Employment Act and the contractual three months notice term
The Claimant was notified in writing of the redundancy, the letter was copied to the Local Labour Officer, and notice of two months and three weeks was given, close to the three months notice required by clause 21 of the terms of service. Section 40's procedural requirements were met and the branch restructuring justified the redundancy.
Entitlement to severance pay on redundancy
Statutory minimum severance pay of 15 days pay per completed year of service applied, yielding Kshs 430,920/- for 27 years
The terms and conditions of service contained no redundancy severance clause, so section 40(1)(g) was implicated. The court computed the daily rate from basic salary plus housing allowance divided by 26 and awarded 405 days pay for 27 years of service.
Limitation of pre-termination claims
Claims predating about 2004 were time barred, but claims admitted in a 2006 letter (salary arrears 2005, TME and gratuity 2002-2006) were filed within the six year limitation period
Section 4(1) of the Limitation of Actions Act and section 90 of the Employment Act barred the older claims admitted to have accrued years earlier. However, the six year limitation applicable at the time of the 2006 admission meant claims filed in 2010 were within time.
Legal principles established
#- Where a contract of employment has no provision on severance pay on redundancy, section 40(1)(g) of the Employment Act applies, entitling the employee to severance pay at the rate of fifteen days pay for each completed year of service
- Severance pay is computed on the daily rate derived from basic salary plus housing allowance divided by 26
Court orders
#- 1.Respondents to pay the Claimant severance pay of Kshs 430,920/- for 405 days (27 years)
- 2.Respondents to pay salary arrears for 2005 of Kshs 46,029/-
- 3.Respondents to pay Gratuity TME 2002-2006 of Kshs 165,122/-
- 4.Respondents to pay Gratuity 2002-2006 of Kshs 117,784/80
- 5.Deduction of Kshs 88,000/- already received, leaving a total award of Kshs 671,855/80
- 6.No order as to costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over a dispute of wrongful termination and terminal dues
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Isabella Harusi Shehe v Branch Secretary, Kenya National Union Of Teachers (Kilifi Branch) & another [2013] KEELRC 683 (KLR)", Case Analysis (2013). Not stated in the extract (Memorandum of Claim filed 1 October 2010). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/683/eng@2013-07-26
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.