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ELRCDismissed· [2024] KEELRC 1503 (KLR)

Munene v Standard Chartered Bank Limited (Cause 1175 of 2018) [2024] KEELRC 1503 (KLR)

Employment and Labour Relations Court
14 June 2024
JRJames Rika
1,477 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The Claimant, employed by the Respondent as a Talent Acquisition Specialist Grade 7 on a gross monthly salary of Kshs. 263,088, sued for approximately Kshs. 24 million arising from termination of her employment on account of redundancy, alleging discrimination, inferior reassignment terms, and denial of a hearing. The Respondent contended that its human resource restructuring genuinely affected her position; that it notified the Labour Office on 16th December 2016 and the Claimant on 15th December 2016; that consultations were held and a similar position in Uganda was offered; that the redundancy notice was withdrawn and later reissued when she declined the offer; and that she was paid notice, leave, generous severance and extended benefits, executing a full and final discharge agreement on 12th May 2017. The Claimant testified and the Respondent's Employee Relations Manager, Lorraine Oyombe, gave evidence for the Respondent. The court framed two issues: whether the redundancy was justified and fairly carried out, and whether the prayers were merited. It found the redundancy substantively justifiable and procedurally compliant with Section 40 of the Employment Act, commended the employer's genuine consultations, and held the discharge agreement voluntary, valid and binding, applying Coastal Bottlers Limited v. Kimathi Mithika. Claims brought after such an agreement were characterized as vexatious litigation. The Claim was declined with costs to the Respondent.

Key legal issues

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01

Whether the redundancy of the Claimant was justified and procedurally fair under Section 40 of the Employment Act

Holding

The redundancy was substantively justifiable and all requisite procedural steps were taken; the Respondent complied with Section 40 including notification of the Labour Office and genuine consultations with an offer of alternative employment

Reasoning

The Respondent restructured its human resource function, notified the Labour Office, issued notice to the Claimant on 15th December 2016, engaged in consultations, withdrew the redundancy notice upon offering a role in Uganda, reissued the notice when the offer was declined, and terminated. The court commended the employer's handling of the consultation process as worthy of emulation.

p. 4
02

Whether the Claimant could pursue claims after executing a full and final discharge agreement

Holding

The discharge agreement was voluntary, valid and binding, and the Claim could not stand against it

Reasoning

The Claimant executed a redundancy agreement acknowledging receipt of payment and agreeing that its terms were in full and final settlement of all claims. She filed the suit a year later. Relying on Coastal Bottlers Limited v. Kimathi Mithika, the court held the agreement binding and described the litigation as vexatious.

p. 4
03

Whether the termination was discriminatory

Holding

No finding of discrimination; the position was affected by genuine restructuring and the Claimant declined an equivalent role in Uganda

Reasoning

The evidence established a genuine restructuring affecting the Claimant's position. She was offered a similar role in Uganda on the same position of Talent Acquisition Specialist, which she rejected. The court found no basis for the discrimination claim and the prayers founded on it.

p. 3

Legal principles established

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  • Claims made by parties who have voluntarily executed valid discharge agreements after receiving terminal benefits are vexatious litigation
  • A voluntary, valid discharge agreement binds the parties, per Coastal Bottlers Limited v. Kimathi Mithika

Court orders

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  1. 1.The Claim is declined
  2. 2.Costs to the Respondent
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment and labour relations disputes

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, "Munene v Standard Chartered Bank Limited (Cause 1175 of 2018) [2024] KEELRC 1503 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1503/eng@2024-06-14

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