Kieti v Ikons Hotel Limited (Employment and Labour Relations Cause E068 of 2021) [2024] KEELRC 2712 (KLR)
The bottom line
#A Kenyan hotel that laid off a worker during COVID-19 had to recall him formally or declare redundancy—silence counted as unfair termination worth Kshs. 105,000.
What this practically means
#Executive summary
#Key legal issues
#Whether the claimant's employment was frustrated by the COVID-19 pandemic
The initial release in March 2020 may have been valid, but failure to communicate recall or declare redundancy after the lockdown was lifted constituted unfair and unprocedural termination.
The court accepted that both parties understood employees were released in March 2020 due to the pandemic closure and were to be recalled. However, the respondent produced no evidence of writing to recall the claimant, only a notice on the hotel door. The claimant's demand letter of 11 December 2020 went unanswered. Once the respondent reopened, it was obliged either to recall the claimant or serve a Section 40 redundancy notice. Silence left the claimant to assume termination, which was contrary to fair labour practices.
Whether the claimant is entitled to the reliefs sought
Notice pay and six months' salary as compensation awarded; unpaid leave, part salary for March and service charge prayers refused.
Having found unfair termination, the court entered judgment for the claimant and awarded one month's salary in lieu of notice (Kshs. 15,000) and six months' equivalent salary as compensation for unfair termination (Kshs. 90,000), totalling Kshs. 105,000 with interest. Prayers for accrued leave, unpaid March salary and service charge were found baseless and not granted. A certificate of service was ordered within 30 days.
Legal principles established
#- An employer who releases employees during a crisis must, once conditions normalise, communicate recall or serve a redundancy notice under Section 40 of the Employment Act; leaving an employee in limbo is unfair termination contrary to fair labour practices.
- Burden of proving unfair termination rests on the employee while the burden of justifying the grounds for termination rests on the employer under Section 47(5) of the Employment Act.
Court orders
#- 1.One month salary in lieu of notice of Kshs. 15,000/-
- 2.Six months' equivalent salary as compensation for unfair termination of Kshs. 90,000/-
- 3.Total award of Kshs. 105,000/- plus interest at 14% per annum from date of judgment till full payment
- 4.Costs awarded to the claimant
- 5.Claimant to be issued with his certificate of service within thirty (30) days
- Jurisdiction invoked
- Employment and labour relations jurisdiction (Employment Act; judgment does not cite the specific constitutional provision conferring jurisdiction)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kieti v Ikons Hotel Limited (Employment and Labour Relations Cause E068 of 2021) [2024] KEELRC 2712 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2712/eng@2024-10-25
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.