Sarah Adhiambo Awiyo & 2 others v G4S Kenya Limited [2020] KEELRC 1470 (KLR)
The bottom line
#G4S Kenya lost because it skipped legally required consultation and notice steps before making three employees redundant, paying them millions in compensation.
What this practically means
#Executive summary
#Key legal issues
#Whether the redundancy was lawful and fair
The redundancy was unfair and unlawful because the Respondent failed to comply with Section 40 of the Employment Act
The Respondent could not prove the Claimants were notified of the intended redundancy or consulted. Minutes of the November 2016 meetings were not produced, so the court could not deduce any discussion on redundancy. The notice to the Labour Office, dated 1/12/2016, did not name affected employees and was only received on 15/12/2016, yet the redundancy was to take effect on 1/12/2016. There was also no evidence of consultations between the parties before the redundancy, contrary to the requirement implicit in Section 40(1) and ILO Convention No. 158 as applied in the Kenya Airways case.
Whether the Claimants are entitled to the remedies sought
The Claimants were awarded salary in lieu of notice, severance pay (for the Cause 153A claimant), 10 months' compensation, certificates of service and costs, but not the full 12 months' compensation sought
Having found the redundancy unfair and unlawful, the court exercised discretion under the Employment Act to award compensation. The court awarded 10 months' salary as damages for unfair redundancy to each claimant, together with salary in lieu of notice, and for the Cause 153A claimant severance pay computed at 20 days for each completed year of service. Certificates of service and costs of the suits were also awarded, though not the full 12 months' compensation claimed.
Legal principles established
#- An employer must strictly comply with Section 40 of the Employment Act, including consultation and notice to affected employees and the labour officer, before a lawful redundancy
- Consultation between employer and employees before redundancy is an imperative requirement under Kenyan law, following Maraga JA in the Kenya Airways case
- Failure to follow the Section 40 procedure renders a redundancy unfair and unlawful, entitling the employee to compensation
Court orders
#- 1.In Cause 302/2017, 1st Claimant Sarah Adhiambo Awinyo awarded salary in lieu of notice of Kshs. 417,610 and 10 months' compensation of Kshs. 4,176,100, plus certificate of service and costs
- 2.In Cause 302/2017, 2nd Claimant Caroline Wangari Thuu awarded salary in lieu of notice of Kshs. 289,910 and 10 months' compensation of Kshs. 2,899,100, plus certificate of service and costs
- 3.In Cause 153A/2017, Martin Mwangi awarded 1 month salary in lieu of notice of Kshs. 256,230, severance pay of Kshs. 512,460 at 20 days per completed year of service, and 10 months' compensation of Kshs. 2,562,300, plus costs
- Jurisdiction invoked
- Article 162(2) of the Constitution (establishment of the Employment and Labour Relations Court) and the Employment and Labour Relations Court Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Sarah Adhiambo Awiyo & 2 others v G4S Kenya Limited [2020] KEELRC 1470 (KLR)", Case Analysis (2020). Cause No. 302 of 2017 (Consolidated with Cause 153A of 2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1470/eng@2020-02-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.