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ELRCPartially AllowedPetition (not specified on face of judgment)· [2021] KEELRC 1783 (KLR)

Wilson Waweru Ndungu v Ingredion Holding Llc – Kenya Branch [2021] KEELRC 1783 (KLR)

Employment and Labour Relations Court
30 April 2021
7,717 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~31 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled an employer's redundancy unlawful because it failed to give one month's notice to both the employee and the Labour Officer.

What this practically means

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Executive summary

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The Petitioner, an employee of the Respondent since 2013, received a notice of intention to declare redundancy on 3rd February 2020 arising from a restructuring. He applied for and was appointed Supply Chain Coordinator, was assured by letter dated 20th February 2020 that he was no longer at risk of redundancy, and received a salary increase in March 2020. During the COVID-19 lockdown he was hindered from reporting to work at his Limuru residence despite movement passes arranged by the Respondent. On 2nd June 2020 the Respondent issued a second notice of intention to declare him redundant, abolishing the supply chain coordinator role after a further review concluded outsourcing was more cost effective. The Petitioner filed a petition and interlocutory application alleging unlawful redundancy, discrimination and violation of constitutional rights, seeking declarations and damages. The court found the February 2020 notice to the Labour Officer did not cover the June 2020 redundancy and that no valid notice was issued to either the Petitioner's advantage or the Labour Officer, since the Labour Officer's notice only issued on 7th July 2020 after termination. It held the redundancy unlawful and the termination unfair under Section 45 of the Employment Act, and found a breach of the Petitioner's legitimate expectation. However, no discrimination, malice, unfair labour practice or constitutional violation was proved. The court awarded compensatory damages of five months' salary (Kshs.1,073,095/=), directed adjustment of severance pay to one month per year of service, and awarded the Petitioner costs with interest from the date of judgment. Punitive damages were refused.

Key legal issues

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01

Validity of the redundancy notice to the employee and the Labour Officer

Holding

The redundancy was unlawful for want of valid notice; the employee's notice of 2nd June 2020 was not matched by a notice to the Labour Officer until 7th July 2020, after the termination.

Reasoning

Section 40(1)(a) and (b) of the Employment Act require notification of both the employee and the Labour Officer at least one month before redundancy. The February 2020 notice to the Labour Officer covered only the earlier redundancy from which the Petitioner was not affected, and the Respondent admitted this by issuing a fresh notice on 7th July 2020 while the suit was pending. The Petitioner was thus terminated before the Labour Officer's notice was issued.

p. 12
02

Alleged discrimination and malice in selection for redundancy

Holding

No malice or discrimination was established; the redundancy flowed from a genuine business restructuring, not from the Petitioner's failure to work during the COVID-19 lockdown.

Reasoning

The Respondent showed the supply chain coordinator position was abolished following a review that made outsourcing to its warehousing partner more cost effective. The court found the correspondence about the lockdown and movement passes insufficient to prove the Petitioner was targeted for his inability to report to work.

p. 11
03

Alleged constitutional violations (Articles 10, 19, 20, 21, 27, 28, 41, 47, 165, 260)

Holding

No constitutional violation was proved; the claim was adequately dealt with under the Employment Act.

Reasoning

The court found no proof of discrimination under Article 27, no evidence on Articles 28, 41 or 47, and no demonstration of the relevance of Articles 165(3) and (6) or 260. The Petitioner thus failed on the constitutional heads of his petition.

p. 11
04

Breach of legitimate expectation

Holding

The Respondent breached the Petitioner's legitimate expectation created by the letter of 20th February 2020 assuring him he was no longer at risk of redundancy, only to declare him redundant two months later.

Reasoning

The letter of 20th February 2020 and the notice to the Labour Officer of 3rd February 2020 assured the Petitioner of continued employment in the new structure after his successful interview and salary increase. The abrupt second redundancy without prior notification defeated that assurance.

p. 12

Legal principles established

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  • For a valid redundancy notice under Section 40(1) of the Employment Act, both the employee personally and the Labour Officer must be notified at least one month before the redundancy; notice to one without the other is not valid notice.
  • Non-compliance with the statutory redundancy procedure in Section 40(1) of the Employment Act renders the redundancy unlawful and the termination unfair under Section 45 of the Employment Act.
  • An assurance by an employer that an employee is no longer at risk of redundancy gives rise to a legitimate expectation which the employer breaches if it thereafter declares the same employee redundant.

Court orders

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  1. 1.Declaration that the redundancy was unlawful and amounted to unfair termination
  2. 2.Declaration that the Respondent violated the Petitioner's legitimate expectation
  3. 3.Award of compensatory damages equivalent to 5 months' salary in the sum of Kshs.1,073,095/= to the Petitioner
  4. 4.The Respondent to adjust the tabulation of the Petitioner's severance pay to the rate of one month's pay for each year of service and pay him the difference
  5. 5.The Respondent to pay the Petitioner's costs of the suit with interest on the decretal sum accruing from the date of judgment

Authorities

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Legislation

  • Constitution of Kenya 2010Articles 10, 19, 20(1),(2),(3)&(4), 21(1)&(2), 22, 23, 27(1)&(5), 28, 41(1)&(2), 47(5), 48, 159(2)(d), 165(3)(b), 165(3)&(6), 260
  • Employment ActSections 12 (sic - as cited in application), 40(1)(a), 40(1)(b), 45
  • Employment and Labour Relations Court ActSection 12
  • Fair Administrative Actions Actnot specified
  • Companies Act, 2015not specified
  • Civil Procedure ActSection 1B; Order 50
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (4)

  • Eric V. J. Makokha & 4 Others v Lawrence Sagini & 2 Others [1994] eKLR
    [1994] eKLR
  • Kenya Petroleum Oil Workers Union v Kenya Petroleum Refineries Ltd & 3 Others [2014] eKLR
    [2014] eKLR
  • Florence Adhiambo v Wananchi Telcom Limited & Another (2017) eKLR
    (2017) eKLR
  • Thomas De La Rue (K) Ltd v David Opondo Omutelema (2013) eKLR
    (2013) eKLR
Jurisdiction invoked
Article 165(3)(b) of the Constitution of Kenya 2010; Section 12 of the Employment and Labour Relations Court Act

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Wilson Waweru Ndungu v Ingredion Holding Llc – Kenya Branch [2021] KEELRC 1783 (KLR)", Case Analysis (2021). Petition (not specified on face of judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1783/eng@2021-04-30

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.