Transport Workers Union Kenya v Sifa Imports Limited (Cause 1421 of 2018) [2024] KEELRC 2181 (KLR)
The bottom line
#A Kenyan court ruled an employee's redundancy unfair because the employer skipped the legal process, awarding the worker over KShs 1.5 million.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the Claimant (Grievant) was unfairly terminated
- 2.Whether the Claimant is entitled to the reliefs sought
Key legal issues
#Whether the Grievant's redundancy was fair
The redundancy was unfair because the process under section 40 of the Employment Act was not followed
The Claimant pleaded that the Grievant's workstation was taken over by another dealer and he was locked out, amounting to unfair redundancy. The court held that redundancy must follow section 40 of the Employment Act. Financial difficulties might explain non-payment of salary but did not excuse non-compliance with due process. The Respondent also did not participate in the proceedings to dispute the allegations.
What reliefs flow from the unfair termination
The court awarded notice pay, unpaid salary arrears, 15 days' wages for January 2018, unpaid leave, severance pay at 15 days per complete year, three months' compensation and a certificate of service
Compensation follows as a matter of course upon a finding of unfair termination. With two years of service, three months' salary was reasonable compensation and severance was pegged at 15 days' pay per complete year on the pleaded salary of Kshs 120,000/=. The unpaid salary and January 2018 wages succeeded, and leave was granted because the burden of proving leave taken lay on the absent Respondent.
Legal principles established
#- In cases of redundancy, the procedure prescribed under section 40 of the Employment Act must be followed regardless of an employer's financial difficulties
- An employer bears the burden of proving that an employee took his leave; failure to participate in proceedings results in the leave claim being granted as prayed
- Upon a finding of unfair termination, compensation follows as a matter of course
Court orders
#- 1.Notice pay of Kshs 120,000/=
- 2.Unpaid/withheld monthly salary April 2017 to December 2017 of Kshs 775,000/=
- 3.15 days wages for January 2018 of Kshs 60,000/=
- 4.Unpaid leave of Kshs 168,000/=
- 5.Severance pay of Kshs 60,000/=
- 6.Three months' compensation for unfair termination of Kshs 360,000/= (total award Kshs 1,543,000/=)
- 7.Issuance of a certificate of service within 30 days of delivery of the judgment
- 8.Claim allowed with costs
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Section 69(b) of the Labour Relations Act, pursuant to a certificate of unresolved dispute
Relief refused
#Six months' salary compensation for unfair redundancy (Kshs 720,000/=) - reduced to three months
The Grievant had worked for approximately two years, so three months' salary was reasonable compensation
Costs
The Claimant's claim is allowed with costs.
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
The Court is therefore of the view that the redundancy was unfair besides the Respondent did not participate in the proceedings to dispute the grievant’s allegations.
In conclusion the Claimant’s claim is hereby allowed with costs as follows:
Total………………….. KSHS 1,543,000/= g. Certificate of service
Issues in the judgment
#Judgment does not state the case number, neutral citation or the Respondent's name
The issues framed refer to 'the Claimant' being terminated whereas the Claimant is the trade union and the Grievant is the employee
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Transport Workers Union Kenya v Sifa Imports Limited (Cause 1421 of 2018) [2024] KEELRC 2181 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2181/eng@2024-09-06
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.