Keroche to pay former MD Sh45m for unfair dismissal
Keroche Breweries Ltd has been ordered to pay its former managing director Sam Shollei Sh45.5 million for unfair and wrongful dismissal.
Employment and Labour Relations Court judge Hellen Wasilwa ruled that the brewer did not give Shollei the reason for his dismissal. Neither did it subject him to any disciplinary process before it fired him in 2018. “As provided under Section 45(2) of the Employment Act 2007, the termination of the contract was unfair and unjustified,” said the judge.
Shollei sued the brewer for Sh75 million as compensation for unfair and wrongful termination saying it failed to follow the disciplinary process and terminated him for no reason.
Through lawyer Daniel Achach, he explained that on or about July 10, 2017, he entered into a contract of employment with Keroche Breweries as a managing director – effective October 1, 2017, for a term of four years, earning a gross monthly salary of Sh2.5 million and other benefits and bonuses.
“The contract provided that it could be terminated by either party giving the other three months’ notice or paying three months’ salary in lieu of notice. But this was later extended to six months,” he had claimed in court documents.
He contended that through an arrangement with the Company, and citing political instability in the country that followed the general elections, the reporting date was postponed to January 2018.
Terminal dues
“It was a common understanding and agreement however that for the delayed period of October to December 2017, I would be paid half of the salary,” Shollei had argued.
The former MD revealed that he was fired on November 12, 2018 after he returned from his leave and was denied access to his office and was informed by his staff that the CEO had informed them in a meeting that he had been dismissed and should not be allowed access to the office.
He said his personal assistant was later called by the human resources department and handed cheques amounting to Sh7 million in his name purportedly being his terminal dues. “I was not informed of the reason for the dismissal nor was I subjected to any disciplinary process as such the termination was unlawful in the eyes of the law,” he argued.
The company in response claimed it terminated Shollei’s contract procedurally due to the poor performance.
It argued that Shollei was always at loggerheads with the policies and ideologies of the top management and tried on various occasions to superimpose his strategies to the detriment of the success of the company.
The company claimed that upon termination, Shollei was paid Sh7 million which included his monthly pay and salary in lieu of the notice.
Justice Wasilwa of Nakuru Employment and Labour Relations Court dismissed Keroche Breweries claim noting that there was no indication that Shollei was subjected to any performance contracting nor was there any evidence that his poor performance was proven based on set targets or deliberations.
“No disciplinary hearing was conducted…The claimant was further terminated without being given notice and so he is entitled to notice pay,” said the judge.
