Victonell Academy Ltd v Mwangi (Employment and Labour Relations Appeal E023 of 2023) [2025] KEELRC 1847 (KLR)

The court applied Section 40(1)(a) and (b) and the Kenya Airways two-limb test of substantive justification and procedural fairness. The termination letter of 12th March 2020 stated only that services were no longer needed, with immediate effect. Payment of one month's wages in lieu of notice did not cure the failure to notify the labour officer and the employee of the intended redundancy, nor was the selection criteria disclosed. Following Barclays Bank and Hesbon Ngaruiya Waigi, the burden on the employer was not discharged.

While upholding the finding of unfair termination, the court considered the length of service and held the maximum-equivalent award disproportionate, exercising its discretion to substitute a lower award under Section 49 principles, and added interest at 14% per annum from the date of judgment until full payment.

The Appellant argued, citing Coastal Bottlers and Trinity Prime Investment, that the Respondent's acceptance of dues constituted a complete contract and waiver. The court did not adopt that line, instead holding that redundancy must strictly follow Section 40 and that the employer bore a heavy burden of proof which it failed to discharge, as no notice was given to the labour officer and no selection criteria were disclosed.