Prideinn Hotels & Investment Limited v Madzungu (Civil Appeal 88 of 2017) [2022] KECA 764 (KLR) (24 June 2022) (Judgment)
- Court
- Court of Appeal
- Case number
- 764
- Citation
- [2022] KECA 764 (KLR)
- Decided
- 24 June 2022
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TypeAppealPostureFirst appealCoramJUDGE OF APPEAL, J. LESIIT, JUDGE OF APPEAL, P. NYAMWEYA, JUDGE OF APPEAL, S. GATEMBU KAIRU
Holding
We set aside the award for the equivalent of twelve months' salary in compensation for unfair termination and substitute it with six months' pay at the rate of Kshs. 10,548/-.
Facts
The respondent was employed as a cleaner in the appellant hotel on 1st July 2003, and the dispute arose when the appellant issued a 30-day notice of termination on 1st May 2015.
Issues
- Whether the appellant followed the law in terminating the respondent on account of redundancy.
- Whether the ELRC awarded the respondent terminal dues that were already paid.
- Whether the ELRC awarded salary in lieu of notice when notice was given.
- Whether the ELRC awarded severance pay in disregard of the evidence.
- Whether the ELRC awarded damages on a salary of Kshs 12,248/- while the respondent's salary was Kshs 10,708/-.
- Whether the award was manifestly excessive and unfair.
Reasoning
The ELRC awarded the maximum months allowed under the Act, which was excessive. The respondent had worked for 12 years and was not at fault for the termination.
Outcome
The appeal was partly successful.
Orders
- Award of six months' pay at the rate of Kshs. 10,548/-.
- Varying the award of one month's salary in lieu of notice to Kshs. 10,598/-.
- Varying the award of severance pay to Kshs. 63,5688/-.
- Ordering the amount payable to the respondent to be reduced by Kshs. 19,605/-.
- Ordering statutory deductions.
- Ordering the interest award to remain unchanged.
Remedies
- The appellant will bear its own costs of the appeal.
Authorities cited
Legislation (1)
- Employment Act, 2007
Cases cited (1)
- Ol Pejeta Ranching Limited v. David Wanjau Muhoro (2017) eKLR
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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