Charles Ondiek Okemwa v Eldoret Mattress Limited & Daniel Ngugi T/A Kamtinga Services Ltd (Cause 474 of 2014) [2016] KEELRC 1783 (KLR)
The bottom line
#Kenya's Employment Court ruled that an employer must prove it followed redundancy notice rules, and awarded the worker over Kshs 400,000.
What this practically means
#Executive summary
#Key legal issues
#Procedural fairness of the redundancy
The termination was procedurally unfair because the Respondents did not prove that the Claimant and/or his Union were notified in writing at least one month in advance, nor that the Local Labour Officer was notified.
Redundancy terminations are governed by section 40 of the Employment Act, 2007. Since the employer knows the reason for termination, it bore the burden of demonstrating compliance with the statutory conditions. The Respondents failed to show written notice of at least one month to the employee or Union and failed to show notification of the Local Labour Officer. That singular failure rendered the redundancy procedurally unfair.
Substantive fairness of the redundancy
In the alternative, the termination was substantively unfair because the Respondent did not prove the redundancy was on account of its operational requirements.
Even if the procedural analysis were wrong, section 45(2)(b)(ii) requires the employer to show a valid and fair reason for termination. The Respondent, having asserted redundancy, had to prove that the redundancy arose from its operational requirements. It called no witnesses and led no evidence on this, so the Court alternatively found the termination substantively unfair.
Overtime claim
The overtime claim as set out in the Memorandum of Claim was awarded because the Respondents did not challenge or controvert the Claimant's testimony or the computation.
The Claimant testified that he worked from 8.00am to 8.00pm; the Respondents opted not to call witnesses and did not challenge this evidence or interrogate the computation of overtime. Uncontroverted evidence stands, so the Court found for the Claimant on the overtime figures pleaded.
Compensation for unfair termination
The Court awarded the equivalent of 4 months' gross wages as compensation under section 49(1)(c), considering the Claimant's approximately 3 years of service.
Compensation is a primary remedy under section 49(1)(c) but remains discretionary, guided by the factors in section 49(4). The Court considered the length of service of about 3 years and the Claimant's gross wage of Kshs 12,200/-, and elected to award 4 months' gross wages, also taking into account the declined severance pay.
Legal principles established
#- Termination on account of redundancy must comply with sections 40 and 45(2)(b)(ii) of the Employment Act, 2007, including written notice of at least one month to the employee and/or union and notification of the Local Labour Officer.
- The burden of proving compliance with section 40 in a redundancy rests on the employer, who ordinarily knows the reason for termination.
Court orders
#- 1.Declaration that the termination of the Claimant's employment through redundancy was unfair
- 2.Respondents to pay the Claimant overtime of Kshs 354,725/-
- 3.Respondents to pay the Claimant 4 months' wages as compensation of Kshs 48,800/-
- 4.Total award of Kshs 403,525/- to the Claimant
- 5.Claimant to have costs of the Cause
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (fair termination and remedies under sections 40, 45 and 49)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
Cite this brief
#Cite this brief
Caselaw, "Charles Ondiek Okemwa v Eldoret Mattress Limited & Daniel Ngugi T/A Kamtinga Services Ltd (Cause 474 of 2014) [2016] KEELRC 1783 (KLR)", Case Analysis (2016). Cause (not stated in judgment; Cause commenced 2 October 2014). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1783/eng@2016-01-29
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.