Goretti Nyokabi Mburu v Booth Extrusions Limited [2019] KEELRC 1299 (KLR)
The bottom line
#A Kenyan court ruled an employer botched a redundancy by skipping legal notices and awarded the employee Kshs 351,195 in severance pay.
What this practically means
#Executive summary
#Key legal issues
#Compliance with section 40 of the Employment Act in redundancy terminations
The Respondent failed to prove it notified the Local Labour Officer and adduced no evidence of the selection criteria, thus failing to comply with the letter and spirit of the law.
It was common ground that the Claimant's employment ended on operational requirements. Section 40(1)(b) required notice to the Local Labour Officer; the Respondent could not prove any such notice. No evidence existed of the criteria used to select the Claimant. The court therefore found the termination procedurally flawed, though the Claimant claimed only severance pay.
Entitlement to and computation of severance pay
The Claimant, having served 16 years (2 December 1998 to 31 December 2014), was awarded severance pay of Kshs 351,195/- as computed and unrebutted by the Respondent.
Section 40(1)(g) entitles a redundant employee to 15 days' pay per completed year of service. The Claimant served 16 years. Her computation of Kshs 351,195/- was neither interrogated nor rebutted by the Respondent, so judgment was entered as sought.
Legal principles established
#- An employer carrying out redundancy must notify the Local Labour Officer of the intended redundancy under section 40(1)(b) of the Employment Act, 2007, and bears the burden of proving that such notice was sent.
- An employer must prove the selection criteria used to select an employee for redundancy.
- Under section 40(1)(g) of the Employment Act, 2007, an employee declared redundant is entitled to severance pay at 15 days' pay for each completed year of service.
Court orders
#- 1.The Court finds and declares that the Claimant was entitled to and is awarded severance pay of Kshs 351,195/-
- 2.Claimant to have costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007 (first-instance employment cause)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Goretti Nyokabi Mburu v Booth Extrusions Limited [2019] KEELRC 1299 (KLR)", Case Analysis (2019). Cause No 1031 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1299/eng@2019-06-21
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.