Mtete

No more free money at the Employment and Labour Relations Court!!! Former CMC Motors manager, Yasser Swaleh, had initially succeeded in his claim before the Employment and Labour Relations Court, which found that his termination was unfair and awarded him KES 4.4 million in compensation. At that stage, the court was persuaded that either the process leading to his dismissal was flawed, or that the employer had not sufficiently justified the termination. However, the matter did not end there. CMC Motors Group challenged that decision before the Court of Appeal of Kenya, and the outcome shifted significantly. The appellate judges re-evaluated the facts and concluded that there were valid and lawful grounds for terminating Swaleh’s employment. In doing so, they overturned the earlier finding of unfair termination and set aside the KES 4.4 million award entirely. At the heart of this dispute lies the legal test under the Employment Act 2007, which requires employers to demonstrate both substantive justification and procedural fairness when terminating an employee. While the lower court may have leaned heavily on procedural shortcomings, the Court of Appeal placed greater weight on the existence of a valid reason for dismissal. In essence, the appellate court was satisfied that the employer’s decision was justified, even if there may have been imperfections in how the process was carried out. This is a classic reversal that shows how differently courts can interpret employment disputes at different levels. The broader implication of this decision is clear. Courts are increasingly unwilling to uphold large compensation awards where an employer can demonstrate a legitimate reason for termination. It reinforces the principle that a flawed procedure alone does not automatically entitle an employee to damages if the underlying reason for dismissal is sound. In this instance, what began as a significant win for the employee ultimately ended in a complete legal victory for the employer.