A Kisumu labor court awarded a former employee of the Rianyamwamu Tea Factory ksh500,000 for unfair dismissal.
The court concluded that the employee was wrongfully fired because his company lowered expenses.
In his decision, Justice Stephen Radido emphasized the need for employers to provide tangible proof to back up termination claims, citing the tea factory's failure to notify the labor office about the planned layoff, among other reasons.
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Denis Maranga Ongeri filed a court case alleging unjust termination of employment, which the Judge deemed valid.
The court ruled in Ongeri's favor and awarded him Sh531,750 in compensation. This decision included considerations for salary instead of notice, gratuity, severance pay, and other terminal dues.
This judgment considered compensation instead of notice, gratuity, severance pay, and other terminal benefits.
In addition, the court decided that if the awarded money is not paid within 30 days, it will accrue interest at court rates.
At the same time, the court denied Ongeri's appeal for Sh1 million in service pay, citing his lack of qualifications.
“Ongeri claimed Sh1,063,500 as service pay. The evidence placed before the court indicates that the claimant was a member and contributor to a Provident Fund as well as the National Social Security Fund. By dint of section 35(5) and (6) of the Employment Act, 2007, the claimant is not eligible for the payment of service pay,” said Justice Radido.
The central problem was ending Ongeri's employment by Rianyamwamu Tea Factory Ltd.
The corporation claimed "unsustainable high labour costs" as the cause for Ongeri's firing, portraying it as part of a staff rationalization effort.
The business stated that it provided its former employee a gratuity of Sh779,252 and severance compensation of Sh649,377 as a gesture of goodwill when they parted ways.
