Kimuyu v Amazon Motors Limited (Cause E1045 of 2021) [2024] KEELRC 2568 (KLR)
The bottom line
#A long-serving Kenyan employee unfairly terminated during COVID-19 won Kshs 1.37 million, though some claims were rejected.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.What compensation is appropriate under section 49(4) of the Employment Act following the finding of constructive dismissal/unfair termination?
- 2.Whether the Claimant was entitled to pay in lieu of notice under the CBA
- 3.The quantum of accrued leave payable under section 28(4) of the Employment Act
- 4.Whether unpaid salaries, sacco dues, damages for unfair labour practices, severance pay and house allowance should be awarded
Key legal issues
#Quantum of compensation for unfair termination
Equivalent of 11 months gross salary awarded considering length of service and COVID-19 circumstances
Section 49(4) of the Employment Act sets out the factors for compensation. The Claimant served 39 years (1981-2021) and separation was occasioned by the COVID-19 pandemic. Balancing these factors, the Court found the equivalent of 11 months of the gross salary of Kshs 88,000/- to be appropriate and fair, totalling Kshs 968,000/-
Pay in lieu of notice
Three months' notice or pay in lieu awarded per CBA clause 19
The Respondent had a CBA with the Amalgamated Union of Kenya Metal Workers providing for notice of termination at clause 19. Having served over 15 years, the Claimant was entitled to 3 months written notice or pay in lieu, computed at Kshs 264,000/-
Accrued leave
Leave capped to last 18 months; Kshs 138,600/- awarded per Respondent's computation
The test case judgment capped accrued leave to the last 18 months per section 28(4) of the Employment Act. For that period, the Respondent computed entitlement at Kshs 138,600/-, which the Court adopted in preference to the Claimant's claim of Kshs 176,020/- for 52 days
Legal principles established
#- Accrued leave is capped to the last 18 months of the contract under section 28(4) of the Employment Act
- An employee serving over 15 years under a CBA clause 19 is entitled to 3 months' notice or pay in lieu
Court orders
#- 1.Award of Kshs 1,370,600/- comprising compensation of Kshs 968,000/- (11 months gross salary), pay in lieu of notice Kshs 264,000/-, and accrued leave Kshs 138,600/-
- 2.Respondent to issue a Certificate of Service within 30 days
- 3.Interest on the awards at court rates from the date of judgment
- 4.Costs to the Claimant
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Employment Act, 2007 (Section 49(4)) - first-instance determination of remedy in an unfair termination cause
Relief refused
#Unpaid salaries, sacco dues, damages for unfair labour practices, severance pay and house allowance
These heads were rejected by the trial Court in the test case judgment
Accrued leave for 52 days (Kshs 176,020/-)
Leave capped to last 18 months under section 28(4), adopting the Respondent's computation of Kshs 138,600/-
Costs
The Claimant to have costs.
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
In consideration of these factors, the Court is of the view that the equivalent of 11 months gross salary as compensation would be appropriate and fair
In the test case judgment, the Court capped accrued leave to the last 18 months of the contract (see section 28(4) of the Employment Act, 2007).
The Court awards the Claimant: i. Compensation Kshs 968,000/- ii. Pay in lieu of notice Kshs 264,000/- iii. Accrued leave Kshs 138,600/- TOTAL Kshs 1,370,600/-
The Respondent to issue a Certificate of Service within 30 days from today.
The Claimant to have interest on the awards at court rates from the date of judgment as well as costs.
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kimuyu v Amazon Motors Limited (Cause E1045 of 2021) [2024] KEELRC 2568 (KLR)", Case Analysis (2024). Nairobi Cause No. E830 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2568/eng@2024-10-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.