Peter Kabaka Osewe v Greek Orthox Patriatchate of Alexandria and All Africa [2020] KEELRC 921 (KLR)
The bottom line
#A Kenyan court ruled that giving notice of redundancy is not enough—employers must also pay severance dues or the termination is unfair.
What this practically means
#Executive summary
#Key legal issues
#Compliance with Section 40 of the Employment Act, 2007 in redundancy terminations
Although the Claimant was given over one month's notice, the Respondent did not pay the redundancy/severance dues, so the termination was unfair
The court found from the termination letter dated 25/7/2012 that the Claimant was terminated on account of redundancy effective end of August 2012, giving over one month's notice. However, Section 40 requires not only ample notice but also payment of severance and other outstanding dues. Since there was no indication the redundancy dues were paid, the Claimant succeeded, and severance was computed at half month's salary per completed year of service.
Quantum of compensation for unfair termination
The court awarded three months' salary as compensation rather than the maximum twelve months claimed
Despite the Claimant's reliance on kenfreight (E.A) Limited Vs Benson K. Ngugi where maximum compensation was awarded, the court in its discretion awarded three months' salary. The Claimant had served about 5 years and was given over a month's notice; the compensation of Kshs. 116,709 was added to severance of Kshs. 97,257.2, less statutory deductions, with costs and interest.
Legal principles established
#- Redundancy under Section 40 of the Employment Act requires ample notice, payment of severance dues and payment of any other outstanding dues; notice alone does not satisfy the section
- Where an employer gives notice of redundancy but fails to pay redundancy dues, the termination is unfair and the employee is entitled to severance pay and compensation
Court orders
#- 1.Severance dues for 5 years = ½ x 38,903 x 5 = Kshs. 97,257.2
- 2.Compensation for unfair termination of 3 months' salary = 3 x 38,903 = Kshs. 116,709/=
- 3.Total award of Kshs. 213,966.5 less statutory deductions
- 4.Respondent to pay costs of the suit plus interest at Court rates from the date of the judgment
- Jurisdiction invoked
- Employment and labour relations dispute under the Employment Act, 2007 (first-instance claim for unfair termination and terminal dues)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Peter Kabaka Osewe v Greek Orthox Patriatchate of Alexandria and All Africa [2020] KEELRC 921 (KLR)", Case Analysis (2020). Not stated in the judgment (Memorandum of Claim dated 14th September, 2016, filed 2nd November, 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/921/eng@2020-05-28
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.