Mwita v Fep Holdings Limited (Employment and Labour Relations Cause 79 of 2020) [2023] KEELRC 2044 (KLR)
The bottom line
#A Kenyan court upheld a redundancy because the employer followed Section 40 of the Employment Act exactly, though it still had to reimburse expenses.
What this practically means
#Executive summary
#Key legal issues
#Whether the termination was for a valid reason
Valid reason established - financial difficulty and failure to achieve revenue projections justified restructuring and abolition of senior positions
The respondent's HR Manager testified the organisation was doing poorly financially and positions in job Groups G-I were abolished to cut operational costs. The Marketing Manager position was scrapped and never filled. The Court found this conformed with the statutory definition of redundancy under Section 2 of the Employment Act, being loss of employment where services are superfluous through abolition of office.
Whether section 40(1) procedural requirements were complied with
Compliance found: more than one month's notice, notice copied to Ministry of Labour, three months' notice pay, leave pay and 15 days' severance pay per completed year
The July 6, 2017 general notice preceded the August 18, 2017 individual notice, satisfying section 40(1)(b) and (c). Management meetings with senior staff satisfied the consultation requirement. Payment of three months' notice pay, unutilised leave days and 15 days' salary per completed year of service satisfied section 40(1)(f) and (g).
Whether the claimant was entitled to reimbursement of medical and travel expenses
Awarded as special damages despite the claimant not having written to the respondent before separation
RW1 conceded the reimbursements were payable upon production of receipts. The claimant testified she provided receipts to one Judy. The Court awarded Kshs 24,650 medical reimbursement and Kshs 12,620 travel reimbursement with interest from date of termination.
Legal principles established
#- An employer contemplating redundancy must first give a general notice of that intention to the employees likely to be affected or their union, which need not name affected employees at that stage
- Full compliance with section 40(1) of the Employment Act - notice to employees and the Labour office, notice pay, leave pay and 15 days' severance pay per completed year - validates a redundancy termination
Court orders
#- 1.The suit in respect of the termination on grounds of redundancy is dismissed in its entirety.
- 2.Judgment entered in favour of the claimant against the respondent for special damages of Kshs 37,270 (Kshs 24,650 medical reimbursement and Kshs 12,620 travel reimbursement).
- 3.The award of Kshs 37,270 to attract interest at court rates from date of termination till payment in full.
- 4.Each party to meet their own costs of the suit.
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007)
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (2)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Gachuhi v Track and Trace Limited (Employment and Labour Relations Cause 415 of 2021) [2025] KEELRC 1372 (KLR)[2025] KEELRC 1372 (KLR)9 May 2025
- Gachuhi v Track and Trace Limited (Employment and Labour Relations Cause 415 of 2021) [2025] KEELRC 1372 (KLR)[2025] KEELRC 1372 (KLR)9 May 2025
Cite this brief
#Cite this brief
Caselaw, "Mwita v Fep Holdings Limited (Employment and Labour Relations Cause 79 of 2020) [2023] KEELRC 2044 (KLR)", Case Analysis (2023). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2044/eng@2023-08-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.