Ogwori v West Kenya Sugar Company Limited (Employment and Labour Relations Cause E002 of 2024) [2025] KEELRC 101 (KLR)
The bottom line
#Kenya's Employment Court ruled an employer's 'redundancy' was actually unfair dismissal, awarding the employee ten months' salary because proper notice was never given.
What this practically means
#Executive summary
#Key legal issues
#Whether the termination on account of redundancy was lawful and fair
The redundancy was unlawful and unfair: no section 40 notice of intended redundancy was issued to the claimant or the labour officer, the notices issued did not mention redundancy, the selection criteria were not evidenced, and the claimant was replaced, rendering the reasons invalid
The court found the 7th July 2023 notices headed 'Notice of Closure meeting' and 'Notice of suspension of Operation' never mentioned redundancy and were not intended for section 40 compliance. RW1 admitted the notices did not mention redundancy and that no consultation occurred. The claimant had just been issued a show cause letter, yet redundancy is faultless termination. Evidence showed Dilo Bilal was employed on 1st August 2023, the day before the dismissal letter, and the claimant's chat evidence showed he was a replacement. The last in first out criterion was not stated in the dismissal letter and no evidence of department staffing or selection was produced. On a balance of probabilities the reasons were invalid and procedure unfair.
Whether the Claimant was entitled to the reliefs sought
Claimant awarded 10 months' salary as compensation and 2 days' unpaid August 2023 salary; overtime claim disallowed as unproved special damages
The claimant was deemed to have worked up to the dismissal letter dated 2nd August 2023, hence 2 days' salary of Kshs. 1,660 was owed. For compensation, the court applied section 49 factors: 7 years' service, notice pay, leave and severance already paid, subsequent employment secured, and incidents of absconding duty, settling on 10 months' gross salary of Kshs. 83,000. The overtime claim failed for want of proof and the discharge form signed by the claimant covered payments up to 31st July 2023.
Legal principles established
#- An employer invoking redundancy must strictly comply with section 40 of the Employment Act, including one month's prior written notice of intended redundancy to the employee and the labour officer
- Redundancy is a faultless method of separation; an employee facing a disciplinary process cannot be disguised as redundant without valid reason and fair procedure
- Compensation for unfair termination is assessed under section 49 of the Employment Act having regard to length of service, dues paid and other relevant factors
Court orders
#- 1.Declaration that the dismissal of the Claimant from employment on account of redundancy was unlawful and unfair
- 2.Compensation for unlawful and unfair dismissal equivalent to 10 months' gross salary at Kshs. 83,000 per month, total Kshs. 830,000/-
- 3.Unpaid salary for 2 days in August 2023 in the sum of Kshs. 1,660/-
- 4.Awards payable less statutory deductions (PAYE) with interest at court rates from judgment date till payment in full
- 5.Costs of the suit to the Claimant
- 6.Stay of 30 days granted
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (section 40 and section 49 of the Employment Act applied to the claim)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ogwori v West Kenya Sugar Company Limited (Employment and Labour Relations Cause E002 of 2024) [2025] KEELRC 101 (KLR)", Case Analysis (2025). ELRC Cause (Statement of Claim dated 15th January 2024, filed 14th February 2024). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/101/eng@2025-01-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.