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ELRCPartially AllowedNot stated in the judgment (Memorandum of Claim dated 16th February, 2021)· [2025] KEELRC 2994 (KLR)

Migiro & 15 others v Registered Trustees of National Council of Churches of Kenya & another (Cause E175 of 2021) [2025] KEELRC 2994 (KLR)

Employment and Labour Relations Court
30 October 2025
4,160 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled 16 employees were unfairly retrenched because the hospital skipped mandatory redundancy notices, selection criteria, and then refilled the same jobs.

What this practically means

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Executive summary

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Sixteen former employees of a Nairobi hospital facility (the 2nd Respondent, a subsidiary of the 1st Respondent) sued after their employment was terminated on 9th March 2020 on grounds of redundancy, seeking a declaration that the redundancy was unlawful, together with salary for days worked, leave pay, one month's notice, 15 days' severance pay per completed year of service, and pension under RBA guidelines. The Respondents admitted the employment relationship with the 2nd Respondent but maintained the redundancy complied with Section 40 of the Employment Act, 2007, citing financial constraints, COVID-19 and reduced donor funding. The 1st Respondent had already been struck out in a prior application. The court, through C. N. Baari, J, framed three issues: whether the termination by redundancy was unfair, entitlement to remedies, and costs. On the evidence, including the concession of the Respondents' HR Manager that the notices took effect immediately on 9th March 2020 and the Labour Officer's letter was received on 11th March 2020, the court held the mandatory one-month notice under Section 40(1)(b) was not given; that there were no pre-redundancy consultations and no objective selection criterion; and that refilling the declared-redundant positions showed the redundancy may not even have been necessary. The terminations were declared unfair. Severance pay at 15 days per completed year, one month's notice pay, leave pay and nine days' salary were tabulated and awarded per claimant. The pension claim was referred to the Retirement Benefits Authority, and damages for unfair termination were refused as unpleaded. Costs were awarded to the Claimants against the Respondents.

Key legal issues

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01

Procedural fairness of the redundancy (notices)

Holding

Termination was unfair because the mandatory one month notices to employees and the Labour Officer under Section 40(1)(b) were not issued; the notice to the Labour Office reached it two days after the redundancy took effect.

Reasoning

RW2, the Respondents' own HR Manager, confirmed the notices took effect immediately on 9th March 2020 and that the letter to the Labour Office was received on 11th March 2020, after the termination. Section 40(1)(b) requires notification not less than a month prior. Following Kenya Airways v Aviation & Allied Workers Union, the court held the notice requirement was breached, rendering the process procedurally unfair.

p. 7
02

Consultation and selection criterion

Holding

There were no pre-redundancy consultations and no selection criterion; the Section 40 procedure was disregarded entirely.

Reasoning

The Respondents' witness had no Board resolution or minutes on the redundancy. The court found the Respondents did not attempt consultations nor consider criteria, holding the procedure was 'thrown out the window'. The employer cannot impose its own model where none existed; the criterion must be objective and demonstrable.

p. 7
03

Justification for the redundancy

Holding

The redundancy was not genuinely justified since the same positions were refilled, including the 1st Claimant's former Head of Clinical Services position.

Reasoning

RW2 admitted the position previously held by the 1st Claimant had since been filled. The court reasoned that refilling positions declared redundant shows the redundancy was not only unprocedural but possibly unnecessary, failing the test of reasonableness and the requirement that services be genuinely rendered superfluous.

p. 8
04

Remedies

Holding

Claimants entitled to severance pay at 15 days per completed year, one month's pay in lieu of notice, leave pay and 9 days' salary; pension claim referred to the RBA; no compensation for unfair termination as none was pleaded.

Reasoning

The Claimants' evidence that dues were unpaid was uncontroverted, and the Respondents' own tabulation omitted severance pay. Severance, notice pay, leave pay and days worked were awarded per claimant. Pension was ousted by the RBA regime; damages for unfair termination were refused because not sought in the pleadings.

p. 8

Legal principles established

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  • Redundancy is a legitimate ground for termination only where the employer proves actual redundancy and compliance with Section 40 of the Employment Act
  • The one month notice of intended redundancy to employees and the Labour Officer under Section 40(1)(b) is mandatory
  • An employer must have an objective selection criterion for redundancy
  • Redundancy must rest on operational requirements and must not disguise a dismissal; filling the same positions afterwards negates it

Court orders

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  1. 1.A declaration that the Claimants were unfairly terminated
  2. 2.An order that the Respondents pay the Claimants one month salary in lieu of notice
  3. 3.Salary for the 9 days worked in March, 2020
  4. 4.Severance pay (15 days' pay for every year served)
  5. 5.The awards are subject to statutory deductions
  6. 6.Costs to be borne by the Respondents

Authorities

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Legislation

  • Constitution of Kenya, 2010Article 41 (fair labour practices, trade union rights)
  • Constitution of Kenya, 2010Article 47 (fair administrative action)
  • Employment Act, 2007Section 40(1) (redundancy procedure)
  • Fair Administrative Action ActDefinition of administrative action
  • Retirement Benefits Authority (RBA) ActPension claims jurisdiction
  • ILO Convention No. 158Termination of employment

Cases cited (5)

  • Betty Chemurgor vs. Laico Regency Hotel Limited
    [2021] eKLR
  • Cargill Kenya Limited vs. Mwaka & 3 others
    [2021] eKLR
  • Nation Media Group Limited v Munene
    (Civil Appeal E603 of 2021) [2025] KECA 114 (KLR) (24 January 2025)
  • Kenya Airways Limited v Aviation & Allied Workers Union Kenya & 3 others
    [2014] KECA 404 (KLR) / [2014] eKLR
  • Joseph Macharia Warutere & 3 Others v. Saab Kenya Ltd
    (2017) eKLR
Jurisdiction invoked
Original employment and labour relations jurisdiction (Employment Act, 2007; Employment and Labour Relations Court Act)

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, "Migiro & 15 others v Registered Trustees of National Council of Churches of Kenya & another (Cause E175 of 2021) [2025] KEELRC 2994 (KLR)", Case Analysis (2025). Not stated in the judgment (Memorandum of Claim dated 16th February, 2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2994/eng@2025-10-30

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