The Appellate Court has awarded a woman sh3.9 million for wrongful termination as she was about to give birth over alleged losses posted by her employer, Brandlife Kenya Limited.
The appellate court said that Ann Koskei was not responsible for the company’s sh7.2 million or US$60,000 loss for a project it undertook between January and June 2019.
Justice Daniel Musinga, Gatembu Kairu and Lydia Achode said that Koskei lost a senior job with good career prospects unlawfully and unfairly and subjected to unfair disciplinary process whilst she was pregnant and about to give birth.
The judges said Brandlife Kenya Limited did not follow the proper disciplinary procedure, and it did not have valid grounds to terminate Koskei.
“The claimant was admonished even for taking seven days’ sick off to attend to emergency complications. The attitude displayed by Brandlife Kenya Limited managing director, Julius Agenmonmen, towards Koskei was inhuman and wanting and failed to give due consideration to the claimant’s condition at the time,” said Justice Musinga.
The court further held that the fact that the notice to show cause was given to her the same date she took maternity leave is an aggravating circumstance in the matter.
The judges said that the company failed to honour the contract of employment by reducing the salary of Koskei by 40 percent while she was expectant and due to go on maternity leave.
In dismissing the appeal filed by Brandlife, the appellate court said the Company also did not honour the two months’ termination notice provided in the contract of employment.
“The claimant (Koskei) suffered anguish and psychological torture by being subjected to this unlawful process culminating in unlawful termination during her immediate postnatal care period,” said Justice Musinga.
The judges upheld the award by Justice Nduma, dated October 19, 2023, awarding Koskei sh400,000 in lieu of one month’s notice, sh279,993 in lieu of 21 days’ annual leave, sh1,280,000 unpaid salary arrears from September 2, 2018 to April 8, 2019 and sh2,000,000 compensation for the unlawful and unfair dismissal.
”We find that the court, in exercising its discretion to compensate the respondent, was correctly guided by sections 49 and 50 of the Employment Act. The appellant has not established any basis for this court to interfere with the exercise of discretion by the learned judge in making the award of five months’ pay as compensation for the unlawful termination,” said justice Musinga.
The court ruled that Koskei was simply subjected to a one on one session with a director who did not have relevant information to deal with the allegations made, unfairly against her.
“Clearly the claimant (Koskei) was maliciously blamed for matters beyond her control and was wrongly, without any proof accused of having caused the company a loss of US$60,000,” noted the appellate court.
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The judges said that no reasonable employer would have terminated the employment of its county manager on such flimsy and unproven grounds.
The court said that the company failed to constitute a proper committee of the Board to hear the disciplinary case against Koskei.
“County Manager of the respondent (Brandlife Kenya Limited) could not be subjected to a hearing by a single person who admitted before court that he was removed from the day-to-day operations of the respondent, was a new director of the company and not well versed with the matters raised by the MD against Koskei,” said justice
In her defense, Koskei said she informed the company of the agreed budget of sh7, 151,760 (US$59,598) on January 30, 2020 way before the commencement of the project.
The court said Koskei did not misrepresent the expected profit margin but only gave reasonable projections based on the expenditure incurred during the execution of the project.
The judges noted that Mr Agenmonmen confirmed that the company got 18 percent profit margin on the capital expenditure on the project.
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