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ELRCPartially AllowedMemorandum of Claim dated 7th June 2023· [2025] KEELRC 1912 (KLR)

Mureu v Ressourcethica Kenya Limited (Cause E463 of 2023) [2025] KEELRC 1912 (KLR)

Employment and Labour Relations Court
27 June 2025
7,409 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Employment Court ruled a company's 'redundancy' was fake and unfair, awarding the ex-employee about Kshs 1.7 million.

What this practically means

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Executive summary

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The Claimant, employed as a Medical Sales Representative on permanent and pensionable terms, was handed a letter dated 17th January 2023 terminating her employment with immediate effect on account of redundancy, with a pre-tabulated severance package she was told to sign to receive her dues. She declined to sign. A month later the Respondent issued a backdated Notice to Show Cause citing absenteeism and insubordination, held disciplinary hearings she refused to attend, and purported to summarily dismiss her on 8th March 2023. The Respondent contended the parties were negotiating a mutual separation and that she absconded. The court found, from the express terms of the letter, the pay slip marked 'Final dues' and the Respondent's silence about her absence, that she was terminated on 17th January 2023 on grounds of redundancy and that the disciplinary process was an afterthought in bad faith constituting an unfair labour practice. The Respondent failed to prove substantive justification, having adduced no evidence that the position ceased to exist after restructuring, and breached Section 40(1)(b) by issuing a notice of redundancy rather than an intention to declare one and by not notifying the labour officer; no pre-redundancy consultations were held. The selection criteria under Section 40(1)(c) were inapplicable as she was the only Medical Sales Representative. The claim was allowed: a declaration of unfair and unlawful redundancy, tabulated terminal benefits of Kshs 537,856, six months' compensation of Kshs 1,117,284, accrued leave of Kshs 17,384 and the retrenchment cover benefit of Kshs 315,000, less payments already made, for a final award of Kshs 1,717,534.05 with interest and costs. Claims for house allowance, reimbursables, loan arrears and separate damages for discrimination were declined.

Key legal issues

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01

Manner and grounds of separation

Holding

The Claimant's employment was terminated on 17th January 2023 on grounds of redundancy; the subsequent disciplinary proceedings and summary dismissal were an afterthought and inconsequential.

Reasoning

The letter of 17th January 2023 was an unequivocal unilateral termination on account of redundancy with a fixed last working day and a pre-tabulated severance package leaving no room for negotiation or counterproposal. The Respondent never communicated a contrary position before issuing the Notice to Show Cause a month later, and the backdated notice citing future absenteeism demonstrated bad faith amounting to an unfair labour practice.

p. 9
02

Substantive justification for the redundancy

Holding

The Respondent failed to prove substantive justification for the redundancy.

Reasoning

While the letter asserted that restructuring rendered the Claimant's position redundant, no evidence was adduced to show the restructuring actually affected the Sanofi team in Kenya or that the Medical Sales Representative position fell off the structure. Applying Kenya Airways, the employer had to prove abolition of office rendering services superfluous, which it did not.

p. 11
03

Procedural fairness of the redundancy under Section 40

Holding

The Respondent did not comply with Section 40(1)(b) - no notice of intention or labour officer notification - and held no pre-redundancy consultations; accrued leave was also not paid, so the termination was procedurally unfair.

Reasoning

The notice issued declared the redundancy rather than announcing an intention to declare it, leaving no room for consultation, and there was no evidence of notification to the labour office. No evidence of pre-redundancy consultations under ILO standards existed. Although notice pay and severance were provided in apparent compliance with Section 40(1)(f) and (g), accrued leave was omitted and the Respondent failed to produce leave records as required by Section 74(1)(f).

p. 13
04

Selection criteria under Section 40(1)(c)

Holding

The selection criteria requirement was not relevant because there was only one Medical Sales Representative in the Sanofi team.

Reasoning

The criteria under Section 40(1)(c) applies across a particular class of employees affected by redundancy; it presupposes similar, comparable roles. Since there was no indication of other Medical Sales Representatives besides the Claimant, the requirement had no application.

p. 12
05

Entitlement to reliefs

Holding

Claimant awarded the tabulated terminal benefits, six months' compensation, accrued leave pay and the retrenchment cover benefit; other heads declined.

Reasoning

Having found the redundancy substantively and procedurally unfair, the court awarded six months' compensation considering length of service and the Respondent's unfair labour practice conduct. The tabulated dues of Kshs 537,856 and uncontroverted leave pay of Kshs 17,384 were awarded. The Respondent's refusal to sign the Retrenchment Claim Form locked the Claimant out of her insurance benefit, recoverable capped at Kshs 150,000 monthly salary per Clause 9.2. House allowance, reimbursables, loan arrears and separate discrimination damages were refused.

p. 13

Legal principles established

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  • An employer relying on redundancy must prove that the termination is attributable to operational requirements and that the services of the employee have been rendered superfluous through abolition of office, job or occupation.
  • The notice under Section 40(1)(b) of the Employment Act is a notice of intention to declare redundancy, issued before the redundancy takes effect, to enable consultation.
  • The selection criteria under Section 40(1)(c) applies only across a class of similar employees affected by the redundancy.
  • Separate general damages for discrimination and unfair labour practices are not awarded in addition to other remedies for the same violations.

Court orders

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  1. 1.A declaration that the termination of the Claimant from employment by way of redundancy was unfair and unlawful.
  2. 2.Award of Kshs 537,856.00 being the terminal benefits particularized in the addendum to the letter of termination dated 17th January 2023.
  3. 3.Compensatory damages of Kshs 1,117,284.00 being six months' gross salary.
  4. 4.Award of Kshs 17,384.00 being payment of accrued leave.
  5. 5.Award of Kshs 315,000.00 being the benefit under the retrenchment cover.
  6. 6.Total award of Kshs 1,987,524.00 less payments already received totalling Kshs 269,989.95, bringing the final award to Kshs 1,717,534.05.
  7. 7.Interest on the final award at court rates from the date of Judgment until payment in full.
  8. 8.The Claimant shall have the costs of the suit.

Authorities

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Legislation

  • Employment ActSection 40(1)(b)
  • Employment ActSection 40(1)(c)
  • Employment ActSections 40(1)(e), (f) and (g)
  • Employment ActSection 31(2)
  • Employment ActSection 44(4)(a)
  • Employment ActSection 74(1)(f)
  • Constitution of Kenya, 2010Article 41
  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 48
  • International Labour Organisation Convention No. 158 - Recommendation No. 166Article 13
  • Banking (Credit Reference Bureau) Regulations2020
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B

Cases cited (13)

  • Kenya Airways Limited v Aviation & Allied Workers Union Kenya & 3 Others
    (2014) eKLR
  • Cargill Kenya Limited v Mwaka & 3 others
    [2021] eKLR
  • Kimathi v Ericsson Kenya Limited
    (2023) eKLR
  • Noor Mohamed v Red Court Hotel Limited t/a Boma Hotels
    (2020) eKLR
  • George Onyango Akuli v G4S Security Services Kenya Ltd
    (2013) eKLR
  • Muyiwa Gbenga-Oluwatove v Reckitt Benskier South Africa (Pty) Ltd & another
  • Joseph Nzioka v Smart Coatings Limited
    (2017) eKLR
  • Rodgers Titus Wasike v General Esat Africa Limited
    (2020) eKLR
  • John Mose Amiga v Dominion Vegefruits Ltd
    Industrial Case No 77 of 2012
  • Jared Aimba v Fina Bank Ltd
    Industrial Case No. 525 (N) of 2009
  • Mathew Lucy Cherusa v Poverelle Sisters of Belgano t/a Blessed Louis Palazzalo Health Centre
    (2013) eKLR
  • The German School Society & another vs Ohany & another
    [2023] KECA 894 (KLR)
  • G M V vs Bank of Africa Kenya Limited
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under Article 162(2) of the Constitution (employment dispute; not expressly invoked in the extract)

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, "Mureu v Ressourcethica Kenya Limited (Cause E463 of 2023) [2025] KEELRC 1912 (KLR)", Case Analysis (2025). Memorandum of Claim dated 7th June 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1912/eng@2025-06-27

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