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ELRCPartially AllowedNot stated in the judgment· [2023] KEELRC 2220 (KLR)

Ng’ongah v Mount Kenya University (Cause 1 of 2022) [2023] KEELRC 2220 (KLR)

Employment and Labour Relations Court
28 September 2023
3,992 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled a university's redundancy of a senior lecturer was unfair because it skipped mandatory legal steps, awarding him over Kshs 1.6 million.

What this practically means

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Executive summary

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The Claimant, a Senior Lecturer in the Respondent university's School of Education, sued following the termination of his employment on account of redundancy by letter dated 6th February 2020, effective 10th February 2020. He sought three months' salary in lieu of notice, salary for February 2020, damages for wrongful termination, severance pay and leave dues totalling Kshs. 4,203,800/-, plus supervision fees for Masters students. The Respondent maintained that the redundancy followed a workload analysis and harmonization of units, that consultations were held and dues paid, and that the contracts of 2012, 2016 and 2019 were separate and distinct. The court framed three issues: legality of the redundancy, entitlement to reliefs, and costs. It found the redundancy unprocedural because no evidence proved notice to the Labour Officer one month before termination, there was no formal consultation, and the Claimant received only a few days' notice, contrary to the mandatory requirements of Section 40 of the Employment Act. The taskforce report justifying the redundancy was not produced, so substantive justification under Sections 43 and 45 also failed. The court declared the redundancy unprocedural and the termination unfair, awarding Kshs. 174,825/- being the shortfall on terminal dues, seven months' salary (Kshs. 1,330,000/-) as compensation under Sections 49 and 50, and Kshs. 150,000/- for supervision of the five students proved. The discrimination claim was dismissed, and supervision fees for students beyond five were not awarded. Costs and interest were granted to the Claimant.

Key legal issues

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01

Compliance with Section 40 of the Employment Act in declaring redundancy

Holding

The redundancy was unprocedural: no notice to the Labour Officer was proved, no formal consultation with the Claimant, and only a few days' notice was given instead of one month

Reasoning

The court examined the integrity of the entire process against Section 40. RW1 confirmed no formal communication or consultation with the Claimant, and no evidence was led proving service of the redundancy notice on the Labour Officer one month prior. The Claimant received only about 4 days' notice. The mandatory steps in Section 40(1)(b) and (f) were therefore breached, rendering the redundancy unprocedural.

p. 7
02

Substantive justification for the redundancy (Sections 43 and 45)

Holding

The Respondent failed to prove a true and factual redundancy situation because the taskforce report on harmonization of units was not produced in evidence

Reasoning

The employer asserted that the redundancy followed a workload analysis and harmonization of units recommended by a taskforce, but the taskforce report was never produced. The court could not confirm that the need for redundancy was for true and factual reasons justifying termination. Citing Radido J in Kombo Kai Mtoro, redundancy must satisfy the valid-and-fair test under Section 45.

p. 7
03

Entitlement to terminal dues balance, compensation and supervision fees

Holding

The Claimant was awarded Kshs. 174,825/- balance on terminal dues, 7 months' salary as compensation under Sections 49 and 50, and Kshs. 150,000/- supervision fees for five proved students

Reasoning

Assuming the Respondent's figure of Kshs. 854,405 paid, and a salary of Kshs. 190,000/-, the payment fell short by Kshs. 174,825/-. Compensation of 7 months' salary was deemed sufficient given 7.5 years of service and no contribution to the termination. The Respondent, holding graduation lists, failed to prove the five supervised students did not graduate, and its limitation defence failed for want of evidence of when time began to run.

p. 8

Legal principles established

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  • The requirements of Section 40 of the Employment Act on redundancy are mandatory and must be fully complied with
  • Termination through redundancy is subject to the fair termination provisions of Section 45 of the Employment Act; the employer must prove the operational requirement is valid and fair
  • Consultation with employees or their representatives is required before termination on account of redundancy, per ILO Convention No. 158, Recommendation No. 166

Court orders

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  1. 1.A declaration that the Claimant's redundancy was unprocedural and the termination unfair
  2. 2.Payment of Kshs. 174,825/- being the balance due and owing on account of 3 months salary in lieu of notice, severance pay, accrued leave and salary for the month of February, 2020
  3. 3.Payment of 7 months' salary for the unfair termination at Kshs. 1,330,000/-
  4. 4.An order for payment of Kshs. 150,000 for supervision of Masters Students
  5. 5.Costs of the suit and interest until payment in full

Authorities

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Legislation

  • Employment Act, 2007Section 40
  • Employment Act, 2007Sections 43 and 45
  • Employment Act, 2007Sections 49 and 50
  • Employment Act, 2007Section 90
  • Constitution of Kenya, 2010Articles 28, 41 and 47
  • ILO Convention No. 158 - Termination of Employment Convention, 1982 / Recommendation No. 166Article 13 of Recommendation No. 166

Cases cited (7)

  • Daniel Mburu Muriu v Hygrotech East Africa Ltd
    [2021] eKLR
  • Jane Khalechi v Oxford University Press EA Limited
    [2013] eKLR, Cause No. 924 of 2010
  • Ndirangu v Henkel Chemicals E. A. Ltd
    [2013] eKLR
  • Kenya Union of Journalists and Allied Workers v. Nation Media Group
    (2013) eKLR
  • Kenya Airways Limited v Aviation & Allied Workers Union Kenya & 3 others
    [2014] eKLR
  • Kombo Kai Mtoro v Panel Freighters Ltd
    [2013] eKLR
  • Benjamin Langwen v National Environment Management Authority
    [2016] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act and Article 162(2) of the Constitution (employment and labour relations disputes); not expressly cited in the judgment

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, "Ng’ongah v Mount Kenya University (Cause 1 of 2022) [2023] KEELRC 2220 (KLR)", Case Analysis (2023). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2220/eng@2023-09-28

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