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ELRCPartially AllowedNot stated in the judgment (Statement of Claim dated 15th September 2022)· [2025] KEELRC 1463 (KLR)

Mutua v Wanderjoy Party World Limited (Employment and Labour Relations Cause E661 of 2022) [2025] KEELRC 1463 (KLR)

Employment and Labour Relations Court
21 May 2025
HWHellen Wasilwa
2,270 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court awarded a manager KShs 2.7 million because his employer skipped the mandatory notice and consultation steps before declaring redundancy.

What this practically means

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Executive summary

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The Claimant, employed as Finance & Administration Manager effective 1st April 2021 on a gross monthly salary of Kshs. 220,000 plus a Kshs. 50,000 allowance, was terminated by letter dated 27th November 2021 with effect from 30th November 2021 on account of redundancy arising from internal reorganisation of roles. He sued for declarations, general damages, notice pay, unpaid leave, unpaid salary, a certificate of service, costs and interest, alleging the redundancy breached Section 40 of the Employment Act and that the Respondent had coerced him to sign undated resignation letters. The Respondent defended the redundancy as procedurally and substantively fair, citing restructuring, and asserted all terminal dues, including notice pay and leave, had been paid. The Respondent's own witness conceded there was no list of employees declared redundant, no audited accounts showing financial distress, and that the letter to the labour office referred only to one employee. The court held the Respondent failed to comply with Section 40, never issued the Claimant notice, and denied him the consultation required by the Kenya Airways (Aviation & Allied Workers Union) authority, rendering the redundancy unfair and unjustified. The court awarded compensation of ten months' salary (Kshs. 2,700,000) less statutory deductions, plus costs and interest at court rates from the date of judgment. Prayers for notice pay, unpaid leave, salary arrears and a certificate of service were effectively not granted, the court accepting these had been paid or issued.

Key legal issues

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01

Compliance with Section 40 of the Employment Act in declaring redundancy

Holding

The redundancy was unfair and unjustified because the Respondent never issued the Claimant with notice and never consulted him

Reasoning

Section 40(1) requires an employer, where the employee is not a union member, to notify the employee personally in writing and the labour officer of the reasons for and extent of the intended redundancy not less than one month before termination. The letter to the labour office referred to only one employee and conveyed a final position rather than notice of intention. No audited accounts or evidence of restructuring necessity were tendered. The court found the process failed the statutory conditions and was therefore unfair.

p. 5
02

Compensation for unfair termination

Holding

The Claimant was awarded compensation equivalent to 10 months' salary (Kshs. 2,700,000) less statutory deductions

Reasoning

Having found the redundancy process unlawful and unfair, the court exercised its discretion to award maximum-range compensation of 10 months' gross salary at Kshs. 270,000 per month, computed as 10 x 270,000 = 2,700,000, payable less statutory deductions.

p. 5

Legal principles established

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  • An employer may not terminate a contract on account of redundancy unless the conditions in Section 40(1) of the Employment Act, including written notice to the employee personally and to the labour officer, are complied with
  • Consultation with the affected employee is a necessary element of a fair redundancy process

Court orders

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  1. 1.Respondent to pay the Claimant compensation equivalent to 10 months' salary (10 x 270,000 = Kshs. 2,700,000), less statutory deductions
  2. 2.Respondent to pay costs of the suit plus interest at court rates with effect from the date of judgment
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment claims (Employment Act, Section 40); no specific constitutional provision invoked

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, "Mutua v Wanderjoy Party World Limited (Employment and Labour Relations Cause E661 of 2022) [2025] KEELRC 1463 (KLR)", Case Analysis (2025). Not stated in the judgment (Statement of Claim dated 15th September 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1463/eng@2025-05-21

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