Raphael Njoroge Mwaura & 12 others v Kenya Power & Lighting Company Limited [2020] KEELRC 1458 (KLR)
The bottom line
#Kenya's Employment Court ruled that a pressured 'voluntary early retirement' was really a redundancy, entitling 13 ex-Kenya Power managers to higher pay.
What this practically means
#Executive summary
#Key legal issues
#Whether the VER scheme was voluntary or a constructive redundancy
The VER was not voluntary; it targeted senior staff who failed to secure placements in the new structure and amounted to constructive redundancy.
The notice was directed to 'those affected' by the restructuring, restricted to senior management, and gave only 5 days to apply. Given that the Claimants had just lost their positions, they ordinarily chose to apply. The Court found this mounted pressure and was discriminatory, not a voluntary exercise, and that the Claimants' situation fell squarely within the definition of redundancy.
Entitlement to redundancy pay under the Human Resource Manual
Staff with over 16 years' service declared redundant were entitled to 2 months' salary per year worked; the Claimants received only 15 days per year and are entitled to the difference.
The Respondent's Human Resource Staff Regulation and Procedure provided a redundancy package of 2 months' salary for each year worked for staff with over 16 years of service. The Claimants were paid only 15 days per year under the VER, so the Court awarded the difference (equivalent to 45 days' salary per year worked), to be computed later.
Legal principles established
#- An early retirement offer targeted at staff who lost their positions in a restructuring, with a very short application deadline, mounting pressure and restricted eligibility, is not voluntary and constitutes constructive redundancy.
- Where positions are abolished by restructuring, the employer should declare a redundancy and pay the redundancy package provided under the applicable Human Resource Manual.
Court orders
#- 1.A declaration that the Claimants are entitled to a constructive redundancy package of 2 months' salary for each year worked less what was paid to them of 15 days (equivalent to 45 days' salary for each year worked)
- 2.The amount to be computed at a later stage and adopted as a judgment of the Court
- 3.The Respondent to pay costs of the suit
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under Article 162(2) of the Constitution of Kenya, 2010 over employment and labour relations disputes
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Raphael Njoroge Mwaura & 12 others v Kenya Power & Lighting Company Limited [2020] KEELRC 1458 (KLR)", Case Analysis (2020). Cause No. 2575 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1458/eng@2020-02-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.