In a landmark decision that puts corporate Kenya on notice, the Employment and Labour Relations Court ordered East African Breweries Limited (EABL) to pay Sh10.8 million to its former sales manager, Bernard Ng’eno, for unlawfully terminating his contract. This case demonstrates the importance of following due process and respecting employee rights, especially when dealing with disciplinary issues.
Justice Linet Ndolo, who presided over the matter, ruled that EABL mishandled the termination and violated labour laws by failing to give Mr. Ng’eno a fair chance to respond to the accusations. She further noted that the company lacked solid evidence to justify its claims of gross misconduct.
Ng’eno’s Career Cut Short Without a Fair Hearing
Before his dismissal, Bernard Ng’eno had built a reputable career at EABL, one of the largest beverage firms in East Africa. Although he consistently met performance expectations, the company suddenly terminated his contract over alleged misconduct. Rather than following proper disciplinary procedures, EABL sidelined him without providing a hearing or presenting detailed accusations.
Mr. Ng’eno contested the dismissal, arguing that EABL unfairly targeted him in what he described as a “witch hunt.” The court listened to his testimony and found no record of misconduct or valid justification for the action taken against him.
Court Says EABL Violated Labour Law
Justice Ndolo emphasized that Kenyan labour law demands both substantive and procedural fairness. Substantive fairness requires a valid reason for dismissal. Procedural fairness ensures the employee has a chance to respond before any action is taken.
In this case, EABL satisfied neither requirement. The judge criticized the company for failing to notify Mr. Ng’eno of the allegations and for denying him a fair opportunity to defend himself. As a result, the court declared the dismissal unfair and unlawful.
Compensation Breakdown: Why the Court Awarded Sh10.8 Million
The court calculated the compensation based on Mr. Ng’eno’s monthly salary, unpaid dues, and damages for emotional and reputational harm. Specifically, the package includes:
- 12 months’ salary as compensation for unfair dismissal
- Service pay and accrued leave
- General damages linked to reputational damage and emotional distress
Together, these components amounted to Sh10,867,290. The ruling not only restored Mr. Ng’eno’s dignity but also served as a warning to employers who take shortcuts in human resource practices.
Read Also: Safaricom Ordered to Pay KSh 55 Million to 17 Former Sales Managers
Why This Case Matters for Employers in Kenya
This judgment reminds companies that employment law compliance isn’t optional. Kenyan businesses, large or small, must respect employee rights or face legal and financial consequences.
Here are the key takeaways for employers:
- Follow proper procedures. Always document disciplinary matters and give employees the opportunity to respond.
- Avoid assumptions. Without proof, any claims of misconduct can be dismissed in court.
- Understand legal obligations. The Employment Act of 2007 outlines what employers must do before firing anyone.
Companies that ignore these steps risk costly lawsuits and damage to their corporate image.
What Kenyan Employees Should Learn from This Ruling
The victory by Mr. Ng’eno shows that employees can stand up to unfair treatment and win. Kenyan workers should:
- Familiarize themselves with their rights under the Employment Act
- Keep written records of all interactions with HR or management
- Seek legal advice when facing possible dismissal or disciplinary action
If you suspect wrongful dismissal, you have the right to challenge it in the Employment and Labour Relations Court.
A Turning Point in Employment Law Enforcement
This case marks a turning point in enforcing employee rights in Kenya. By awarding Sh10.8 million to Mr. Ng’eno, the court showed that it takes unfair dismissals seriously. It also affirmed that no company—regardless of size or influence—can bypass the law without facing consequences.
Employers must now rethink how they handle disciplinary actions. Ignoring the legal process may not only cost millions in compensation but could also hurt company morale and public reputation.
Final Thoughts
The ruling against EABL is not just about one employee’s rights. It’s a broader reminder that justice matters in the workplace. Kenyan companies must build human resource systems grounded in fairness, transparency, and legal compliance.
For professionals navigating their careers, the ruling is also empowering. It sends a clear message that the courts can and will defend employees when employers break the rules.
