Nairobi Hospital to pay ex-CEO Sh72.9m for wrongful sacking

The Nairobi Hospital has been ordered to pay former Chief Executive Officer Gordon Otieno Odundo Sh72.9 million for wrongful dismissal.

The Employment and Labour Relations Court ruled that his 2019 dismissal was unjustified and unlawful, citing procedural and substantive failures in the termination process.

Justice D.K Marete in his judgment said the sequence of event leading to the Odundo’s termination from employment fell short of requirements of substantive and procedural fairness as espoused by section 41, 43 and 45 of the Employment, Act, 2007.

“A case of unfair and unlawful termination of employment therefore ensues in the circumstances and I hold as such,” Marate said.

“A declaration be and is hereby issued that the claimant summary dismissal from employment was wrongful, unjustified, unfair and unlawful.”

Odundo was employed as CEO by the letter dated May 14, 2016 for an initial term of four years commencing on October 4, 2016.

Odundo averred  that on January 14, 2021, he was served with a letter of 90 days leave pending thorough investigations to access the magnitude of financial concerns over the last two years based on a forensic audit conducted by Ernst & Young (EY.)

He told the court this was without authority of the same board or his letter of appointment besides the Human Resource Manual and code of conduct that empowers the board to suspend him.

Odundo told the court he responded to the concerns and requested for particulars of the issues raised but this was done through vague and evasive responses from counsel for the hospital. 

He further told the court that on March 27, 2019, he was issued with a notice to show cause as to why his employment would not be terminated on grounds that the hospital was considering.

The court was told Odundo was awarded seven days to respond to this but was also barred from his office which would have enabled him access materials for a comprehensive response to the issues raised.

He however did respond to this on April 5, 2019 and issued documentation in such defence but these were never considered by the hospital.

He attended a disciplinary hearing on April 9, 2019 as requested in the notice to show cause but this was adjourned to April 12.

He was ultimately dismissed by a letter dated April 16, 2019 on ground of gross misconduct.

The Judge noted that Odundo was issued with a show cause letter which required a response within seven days of the date of the letter.

He said Odundo was denied access to his office where he could have assessed materials and other data relevant to answering the show cause letter.

He added that the atmosphere in which Odundo was operating had already been poisoned and soured from the date Nairobi Hospital lawyers attempted to storm the his office.

“Despite the time interval involved, the environment was not free or relaxed. It was tense and indicative of a fervent determination by the Respondent (Nairobi Hospital) to rid off claimant. It is no wonder that the claimant (Odundo) from day one presents a case of a pre-determination to terminate his employment.”