Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No E759 of 2021· [2025] KEELRC 2330 (KLR)

Kamau v Copycat Limited (Cause E759 of 2021) [2025] KEELRC 2330 (KLR)

Employment and Labour Relations Court
31 July 2025
3,768 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

#

A Kenyan court ruled that COVID-era pay cuts, unpaid leave, and a rushed redundancy were unlawful, awarding the employee over Kshs 1.1 million.

What this practically means

#

Executive summary

#
The Claimant, employed as an Accountant Manager from 16 July 2018 on a gross monthly salary of Kshs. 142,000.00, sued her employer over three measures taken during the COVID-19 pandemic: a unilateral 20% salary reduction effective 1 April 2020, placement on three months' compulsory unpaid leave from July 2020, and termination on grounds of redundancy by letter dated 4 September 2020. She sought withheld salary, leave-period salaries, 12 months' compensation, notice pay, severance pay, leave pay, welfare deduction refund, interest, certificate of service, payslips and costs. The court framed three issues: lawfulness of the salary cut, validity and procedural fairness of the redundancy, and reliefs. It held the salary deduction unlawful under section 19(1)(g) of the Employment Act since it was not requested by the employee but made for the employer's benefit, and ordered a refund. The redundancy, though substantively justified by the pandemic, was procedurally unlawful: the labour officer was notified on 27 August 2020 for a 4 September 2020 termination, far short of the mandatory one-month notice under section 40(1)(a), which payment in lieu cannot cure, and no objective selection process involving the Claimant was demonstrated. Following Thoma Dela Rue and Kenya Airways, the termination was declared unlawful and unfair. The court awarded a total of Kshs. 1,132,000.00 comprising the salary-cut refund, compulsory leave salaries, notice pay, service pay and 3 months' compensation, with interest, costs and a certificate of service within 30 days. Claims for 2020 leave pay and welfare deductions were dismissed. Judgment dated 31 July 2025 at Nairobi, Mathews Nduma, Judge.

Key legal issues

#
01

Lawfulness of the 20% salary cut

Holding

The salary deduction was unlawful as it was not requested by the employee but made for the employer's benefit; refund ordered.

Reasoning

Section 19(1)(g) of the Employment Act allows only consensual deductions requested in writing by the employee where the employer has no beneficial interest. The letter signed by the Claimant did not state she requested the deduction; the deduction was made to sustain the employer's business. Having no real alternative but to sign, the Claimant is entitled to a refund of the 20% deducted.

p. 5
02

Validity and fairness of the redundancy

Holding

Redundancy had substantive justification but was procedurally flawed: notice to the labour officer was given on 27/8/2020 for termination effected 4/9/2020, far less than one month, and no objective selection process involving the Claimant was shown. Termination was unlawful and unfair.

Reasoning

Section 40(1)(a) requires not less than one month's notice to the labour officer and the employee before termination on account of redundancy. The notice of 27/8/2020 preceded the 4/9/2020 termination by only days. Payment in lieu of notice cannot substitute the one-month notification, whose purpose is to prepare and enable consultation. The Respondent also failed to prove an objective selection process under section 40(1)(c), rendering the termination unlawful and unfair contrary to sections 36, 40, 41 and 45.

p. 6
03

Compulsory unpaid leave

Holding

The three-month compulsory unpaid leave was unwarranted as the Respondent produced no financial statements to justify it; salaries for July–September 2020 awarded.

Reasoning

The Respondent's witness conceded there were no financial statements before court to demonstrate financial distress, only memos. The uncontroverted evidence of the Claimant therefore proved the compulsory unpaid leave was unjustified, and the court awarded the full three months' salaries and allowances of Kshs. 426,000.00.

p. 7

Legal principles established

#
  • A unilateral salary reduction/deduction is lawful only if requested in writing by the employee and not for the employer's benefit.
  • The one month notice of intended redundancy under section 40(1)(a) is mandatory and cannot be cured by an offer of payment in lieu of notice.
  • An employer must demonstrate the selection process under section 40(1)(c) involved the affected employee objectively.
  • A party who fails to call evidence in support of its case leaves pleadings as unsubstantiated statements and the other side's evidence uncontroverted.

Court orders

#
  1. 1.Salary cut refund for April, May and June 2020 in the sum of Kshs. 138,000.00
  2. 2.Kshs. 426,000.00 for unpaid salary during compulsory leave period in July, August and September 2020
  3. 3.Kshs. 142,000.00 in lieu of one-month notice
  4. 4.Kshs. 142,000.00 being service pay
  5. 5.Kshs. 426,000.00 being compensation equivalent to 3 months' salary for the unlawful and unfair termination
  6. 6.Interest at court rates from date of judgment till payment in full
  7. 7.Costs of the suit to the Claimant
  8. 8.Grant of certificate of service within 30 days of the judgment

Authorities

#

Legislation

  • Employment Act, 2007section 19(1)(g)
  • Employment Act, 2007section 17(1)
  • Employment Act, 2007section 40(1)(a)-(g)
  • Employment Act, 2007sections 36, 41, 45
  • Employment Act, 2007section 49(1)(c)
  • ILO Convention No. 158 – Termination of Employment Convention, 1982Article 13 of Recommendation No. 166 (quoted)

Cases cited (3)

  • Thoma Dela Rue (IC) Ltd versus David Opondo Omutelema
    Nairobi Civil Appeal No. 65 of 2012 [2013] eKLR
  • Kenya Airways Limited versus Aviation Allied Workers Union Kenya and 3 others
    [2014] KLR
  • SYTV TA
    [2019] eKLR
Jurisdiction invoked
Original jurisdiction under the Employment Act, 2007 (Employment and Labour Relations Court)

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "Kamau v Copycat Limited (Cause E759 of 2021) [2025] KEELRC 2330 (KLR)", Case Analysis (2025). Cause No E759 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2330/eng@2025-07-31

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