• After deliberating the case, the court found that Acumen did not provide evidence to establish that it was in a genuine redundancy situation.
• It also established that the communications company did not adhere to the minimum statutory standards of termination through redundancy.
Image: JUDICIARY
When Maxine Mwende Muli signed an employment contract with Acumen Communications Limited, it provided that in the event of termination, a notice would be issued three months beforehand.
This was, however, not observed as Mwende was issued with a one-day termination notice on February 7, 2018, effective on February 8, 2018.
Mwende was employed at Acumen Communications as an accounts officer, on March 1, 2016 and had worked for two years when she was fired.
The company cited redundancy as a reason to fire her.
In February 2021, Mwende filed a Statement of Claim seeking a declaration that her termination was unfair and unlawful, three months' salary in lieu of notice at Sh240,000 and severance pay for a year of service.
Severance pay is a financial compensation package offered by an employer to an employee upon termination.
She also sought 12 days annual leaver pay at Sh36,923 and a year's salary compensation for unfair termination at Sh960,000.
A Statement of Claim is a document filed in court with facts supporting a plaintiff's (a person who brings a case against another in court) case and what they want from the defendant.
She said her contract termination was so abrupt her supervisor was not even aware of it.
Opposing her claim, Acumen filed a response stating that Mwende's termination was not unlawful and that she had been paid three months' salary in lieu of notice.
The Employment and Labour Relations Court at Nairobi also heard that the labour office was notified of the termination and all procedural requirements were met.
The company added that on February 7, 2018, Mwende's immediate supervisor consulted her on redundancy.
"She was informed by Respondent’s (Acumen) Finance and Administration Department, that revenues had diminished, and that there was a need to downsize," the court paper says.
Acumen further added that the former employee had taken all her annual leave on termination and had been paid full terminal benefits, totalling Sh185,109.
On the notice to the labour office, the court heard that the same was done on February 14, 2018, days after Mwende's termination.
After deliberating the case, the court found that Acumen did not provide evidence to establish that it was in a genuine redundancy situation.
It also established that the communications company did not adhere to the minimum statutory standards of termination through redundancy, as prescribed by the law.
"The Respondent (Acumen) alleged that its business was performing poorly, but offered no financial business records to sustain the submission. There were no account records, showing the business's financial position. It was just a bare pleading and statement made in evidence," the court paper reads.
"Redundancy was limited to one employee, who had been working seamlessly, for two years."
Judge James Rika also found that except for the notice of three months paid Mwende did not receive any other pay.
The judge declared that the termination through redundancy was unfair and unlawful and awarded her a total of Sh636,923. This is compensation for unfair termination, equivalent to seven months’ gross salary at Sh560,000.
She was also awarded severance pay at Sh40,000 and annual leave at Sh36,923.
Mwende was earning a gross salary of Sh80,000 during her time at Acumen Communications.