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ELRCPartially AllowedNot stated in the judgment· [2015] KEELRC 318 (KLR)

Benson Omwala Oduor v Sec, BOG Equator Special School [2015] KEELRC 318 (KLR)

Industrial Court (Employment and Labour Relations Court)
4 November 2015
1,886 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court allowed a guard's redundancy to proceed but ordered his severance pay increased to match a colleague's, because unequal pay was discriminatory.

What this practically means

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Executive summary

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The Claimant, a night security guard, filed a Notice of Motion on 27th November 2014 seeking temporary and mandatory injunctions restraining the Respondent school from replacing, removing or interfering with his employment, and reinstatement, following his redundancy. Ex-parte interim orders were issued by H. Wasilwa J. The Respondent's Principal, Francis Ouma Manyala, deponed that losses of school property led the Board to outsource security services to Frontmac Holdings Ltd with effect from 1st December 2014, necessitating the Claimant's redundancy by letter dated 27th October 2014 copied to the Labour Officer, Siaya. Parties filed written submissions. The Respondent argued that reinstatement was barred by Rule 16(8) of the Industrial Court (Procedure) Rules, that stopping the redundancy infringed its rights under Article 24(1)(d) of the Constitution, and that it had complied with Section 40 of the Employment Act. The court found the Claimant had adduced no evidence justifying the stoppage of the redundancy; his assertions of secrecy and cover-up were unsupported, and the main claim's prayers (underpayments, overtime, extra duties) did not depend on his continued employment. The application was dismissed, the ex-parte orders discharged, and each party to bear its own costs. However, noting from the Respondent's exhibits that the Claimant's severance was computed at half a month's salary per year worked while his colleague Daniel Oloho received one month's salary per year, the court held this discriminatory and ordered the Claimant's benefits recomputed on the higher basis, together with a certificate of service. The main claim was to be set down for hearing.

Key legal issues

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01

Validity of the redundancy under Section 40 of the Employment Act

Holding

The court found the redundancy was properly initiated following outsourcing of security services; the Claimant gave no evidence-based reasons to justify stopping it

Reasoning

The Respondent deponed that losses of school property led the Board to outsource security services through a tender awarded to Frontmac Holdings Ltd, necessitating the Claimant's redundancy. The Claimant's assertions of secrecy and cover-up were unsupported by evidence, and his age and the claim's prayers (underpayments, overtime) were irrelevant to redundancy since they did not depend on continued employment.

p. 4
02

Discrimination in severance pay between the Claimant and his colleague Daniel Oloho

Holding

Paying the Claimant half a month's salary per year worked while Oloho received one month's salary per year worked was discriminatory; the court ordered equal computation

Reasoning

The court examined exhibits 5 and 6 to the replying affidavit and found an unexplained disparity in the severance basis between two employees in the same class affected by the same redundancy. Discrimination is prohibited by the Constitution and the Employment Act, so the court sua sponte ordered the Claimant's benefits recomputed at the higher rate.

p. 4
03

Relationship between interlocutory application and prayers in the main claim

Holding

The injunction sought was unrelated to the main claim's prayers, which could be pursued regardless of the Claimant's continued employment

Reasoning

The court observed that the memorandum of claim sought underpayments, overtime and payment for extra duties, which are monetary claims not dependent on remaining in employment. The interim injunction to restrain redundancy therefore lacked connection with the suit, weakening the application for interlocutory relief.

p. 4

Legal principles established

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  • An employer must comply with the conditions in Section 40 of the Employment Act before terminating on account of redundancy
  • Paying different rates of severance pay to similarly situated employees constitutes prohibited discrimination under the Constitution and the Employment Act
  • An ex parte order reinstating a terminated employee cannot be granted

Court orders

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  1. 1.The Claimant's application is dismissed
  2. 2.The ex-parte orders granted on 27th November, 2014 are discharged
  3. 3.Each party shall bear its own costs of the application
  4. 4.The Claimant's severance pay is recomputed on the basis of one month's salary per year worked, as was done for Daniel Oloho, comprising one month's salary in lieu of notice, accrued leave and severance pay for 10 years' service
  5. 5.The Claimant to be issued with a certificate of service
  6. 6.The Claimant to clear with the Respondent in exchange for payment of the redundancy benefits and to set down the main claim for hearing

Authorities

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Legislation

  • Employment ActSection 40
  • Industrial Court (Procedure) RulesRule 16(8)
  • Constitution of KenyaArticle 24(1)(d)
  • Penal CodeSections 353 and 383
Jurisdiction invoked
Employment and labour relations jurisdiction under the Employment Act and Industrial Court (Procedure) Rules

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Benson Omwala Oduor v Sec, BOG Equator Special School [2015] KEELRC 318 (KLR)", Case Analysis (2015). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/318/eng@2015-11-04

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.