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Cuea to pay former employee Sh2.8m for unfair termination

Compensation is equivalent to 12 months’ gross pay.

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by carolyne kubwa

News16 July 2019 - 14:11
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In Summary


• Labour Court judge Stephen Radido awarded Peter Siro Nyariki, a former deputy principal, finance at Tangaza College Sh2,848,500.

• Cuea was also ordered to issue Nyariki with a certificate of service within 15 days as sought by his lawyer Daniel Achach.  

Catholic University Of Eastern Africa

The Catholic University of Eastern Africa has been ordered to pay a former employee Sh2.8 million as compensation for unfair termination.

Labour court judge Stephen Radido awarded Peter Siro Nyariki, a former deputy principal, finance at Tangaza College Sh2,848,500.

The compensation is equivalent to 12 months’ gross pay on his Sh237,375 monthly salary at the time of termination. 

Cuea was also ordered to issue Nyariki with a certificate of service within 15 days as sought by his lawyer Daniel Achach.  

The complainant was offered employment as a deputy principal, finance on August 1, 2011, by Tangaza College which belongs to Cuea for a period of four years with an option of renewal.

On  April 28 2014, the University wrote to him to notify him of the termination of his employment.

The letter did not give any reasons for the action and did not state that three months’ salary in lieu of notice and terminal dues would be paid.

Nyariki was aggrieved and on July 14, 2014, filed a suit through lawyer Daniel Achach, for wrongful dismissal and refusal to pay damages for termination of his contract.

Achach argued that Nyariki was paid by the month, and in terms of section 35(1)(c) of the Employment Act, 2007, he was entitled to a written notice of termination of at least 28 days.

The University did not give any notice as contemplated by the provision.

The termination clause in the employment contract of August 1, 2011, required giving the notice by either party.

During testimony, Nyariki stated that he was not afforded an opportunity to be heard.

The court noted that there was no evidence that a show-cause letter was issued or that Nyariki was required to respond to any allegations of gross misconduct or insubordination, or was invited to appear before a disciplinary panel.

Although the University opted to offer Nyariki three months’ pay in lieu of notice, still the statute provides the bare minimum rights and conditions of service which include a hearing,  was not conducted.

Cuea contended in its submissions that Nyariki had set out a cause of action for wrongful dismissal in the pleadings but veered off to one of unfair termination of employment and therefore was not deserving of any relief.

“The court finds that Cuea was in breach of statute, and therefore its action did not meet the procedural fairness test as envisaged by sections 35(1) and 41 of the Employment Act, 2007”, judge Stephen Radido said.

In consideration of the length of service, the expectation by Nyariki to serve out the full tenure of the contract, and that he had not secured alternative employment by time of the hearing, the court is of the view that compensation equivalent to 12 months’ gross salary would be appropriate and fair, the judge ruled. 

(edited by O. Owino)


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