Odhiambo & 2 others v Ona Kenya Limited & another (Cause E307 of 2025) [2025] KEELRC 3703 (KLR)
The bottom line
#Kenya's Employment Court held a US parent company jointly liable with its Kenyan subsidiary for unfair redundancy and awarded three employees months of salary plus costs.
What this practically means
#Executive summary
#Key legal issues
#Whether the Claimants had a cause of action against the 2nd Respondent
Yes - the 2nd Respondent was a joint employer of the Claimants
Despite formal contracts with the 1st Respondent, the Claimants were supervised, appraised, and rewarded by officers of the 2nd Respondent, shared its email domain, workspace and offices, and executed Confidentiality and IP Assignment Agreements with it permitting transfer between affiliates. The integral part of business and control tests were satisfied. No outsourcing or service agreement between the two entities was exhibited.
Whether the termination of the Claimants' employment was unfair
Yes - the redundancy was procedurally flawed and unfair under Section 45 of the Employment Act
The Claimants were not union members and therefore had to receive personal written notices under Section 40(1)(b); none were issued. The selection criteria under Section 40(1)(c) were never produced, and termination letters were silent on leave pay, notice pay and severance contrary to Sections 40(1)(e), (f) and (g). Non-compliance with mandatory statutory conditions rendered the whole process unfair.
What reliefs flow from the unfair termination
Compensation of four months' salary per Claimant plus one month's notice pay; severance, leave pay and aggravated damages declined
The Court exercised discretion under Section 49 to award four months' salary as compensation and one month's salary in lieu of notice under Section 35(1)(c). Severance pay was refused because compensation under Section 45 already covers unfair termination; leave dues failed as unproved special damages; and general and aggravated damages would amount to a double award.
Legal principles established
#- Where an employee is not a member of a trade union, redundancy notification must be in writing to the employee personally and to the local labour officer
- Failure to comply with the mandatory conditions in Section 40 of the Employment Act renders a redundancy an unfair termination under Section 45
- An entity that exercises managerial control, appraises and rewards an employee cannot deny an employment relationship; transfer of an employee is a managerial prerogative of an employer
Court orders
#- 1.Judgment entered for the Claimants against the 1st and 2nd Respondents, jointly and severally
- 2.1st Claimant awarded Kshs.4,021,379.35 being four months' salary for unfair termination (Kshs.3,217,103.48) plus one month's salary in lieu of notice (Kshs.804,275.87)
- 3.2nd Claimant awarded USD 32,500 being four months' salary for unfair termination (USD 26,000) plus one month's salary in lieu of notice (USD 6,500)
- 4.3rd Claimant awarded USD 14,060 being compensation for unfair termination (USD 11,248) plus one month's salary in lieu of notice (USD 2,812)
- 5.Awarded sums subject to statutory deductions pursuant to Section 49(2) of the Employment Act
- 6.Interest on the awarded sums at Court rates from the date of Judgment until payment in full
- 7.Costs of the suit awarded to the Claimants
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act and the Employment Act, 2007 (suit determined on pleadings and affidavits pursuant to Rule 59 of the ELRC (Procedure) Rules 2024)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Odhiambo & 2 others v Ona Kenya Limited & another (Cause E307 of 2025) [2025] KEELRC 3703 (KLR)", Case Analysis (2025). Not stated in the judgment provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/3703/eng@2025-12-19
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.