A Nairobi Employment and Labour Relations Court has ruled in favor of a former business development manager at Magnum Credit Limited, who was dismissed without due process and had his salary withheld.
Case Background
The claimant, employed since April 25, 2024, on a monthly salary of KSh 100,000, was sent home without explanation in August 2024. After handing over his company laptop and being told to await further notice, he received no disciplinary hearing or formal communication until a dismissal letter dated August 28, 2024, arrived, citing "several consultations".
Court Findings
- Magnum Credit Limited failed to conduct any disciplinary hearing or issue a show-cause letter before terminating the employee.
- The company did not remit statutory NSSF or NHIF contributions for the claimant.
- The court rejected the company’s defense that Section 41 of the Employment Act does not apply to probationary contracts.
- Justice Hellen Wasilwa ruled the dismissal was both substantively and procedurally unfair, emphasizing the employee was denied an opportunity to respond to allegations or be represented.
Compensation and Orders
The court ordered Magnum Credit Limited to pay the former manager KSh 800,000 for eight months’ salary and an additional KSh 100,000 as one month’s salary in lieu of notice, totaling KSh 900,000 before statutory deductions. The company was also instructed to issue a certificate of service and cover legal costs with interest accruing from the judgment date.
