Eddah Auma Odede v Hartlane Pharmaceuticals Limited (Cause 303 of 2014) (Employment and Labour) [2016] KEELRC 163 (KLR)
The bottom line
#Kenya's Employment Court ruled that skipping redundancy notice and severance rules makes a dismissal unfair, costing the employer over Kshs.119,000 plus interest and costs.
What this practically means
#Executive summary
#Key legal issues
#Validity of the redundancy declaration
The redundancy was procedurally flawed and substantively unfair; no notice, no labour office notification, no reasons given and no severance paid
The claimant was told her services were no longer required without notice of intended redundancy, without reasons for her selection, and without notification of the labour office one month prior as required by section 40(1) of the Employment Act. Severance pay, described as mandatory, was not paid. The termination therefore violated section 40(1) and was unfair under section 45(1).
Entitlement to compensation for unfair termination
Claimant awarded one month's salary in lieu of notice and five months' salary as compensation under section 49(1)(c), based on a gross monthly salary of Kshs.12,000
Having served only ten months and lost prospects of career growth and income, and being unprepared for termination with no fault of her own, the claimant merited compensation. The court found the gross monthly salary to be Kshs.12,000, rejecting the higher figure claimed and the respondent's lower minimum-wage figure.
Legal principles established
#- Notice of intended termination on account of redundancy must be given to the employee and the labour office notified at least one month prior, and severance pay is mandatory; failure violates section 40(1) of the Employment Act and renders the termination unfair under section 45(1)
Court orders
#- 1.Judgment entered in favour of the claimant in the sum of Kshs.119,993.04
- 2.The award to be paid with interest at court rates from date of filing suit till payment in full
- 3.The respondent to pay costs of the suit
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (suit for unfair termination and terminal benefits)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Eddah Auma Odede v Hartlane Pharmaceuticals Limited (Cause 303 of 2014) (Employment and Labour) [2016] KEELRC 163 (KLR)", Case Analysis (2016). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/163/eng@2016-12-20
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.