Keroche Breweries chief executive officer Tabitha Karanja addressing the media in response to the Kenya Revenue Authority (KRA) press release detailing a tax dispute with the brewer. She now says KRA has contacted them to propose a meeting expected to help resolve the tax dispute.
Naivasha-based alcohol manufacturer Keroche Breweries has been ordered to pay its former procurement manager Sh6.9 million for unfair termination.
The Employment and Labour Relations court agreed with Mr Peter Wachira Mwangi that the effects of Covid-19 pandemic, advanced by the former employer as the reason for declaring him redundant, were not supported by evidence.
Justice David Nderitu further said the obvious and straightforward answer to the termination was that Keroche did not comply with the law in rendering Mr Mwangi redundant.
“No evidence was availed that a notice was issued to the claimant and served upon the labour officer in-charge of the area. Even if the claimant was not a member of a union, he was nonetheless entitled to be served with a notice under Section 40(1)(b) of the Act,” noted the judge.
The court added that there was no evidence adduced by the company on the criteria that was used to declare the former procurement manager redundant.
Mr Mwangi was employed by the manufacturer as a procurement manager on January 25, 2016, on a monthly salary of Sh200,000.
The former manager also accused his former employer of failing to provide him with housing or pay him housing allowance, for the entire period of employment.
On May 21, 2020, just after completing his annual leave, Mr Mwangi said he was orally instructed to remain on unpaid leave due to the effects of the Covid-19 pandemic.
Several months later, on March 15, 2021, Mwangi received a letter informing him that he had been terminated on redundancy.
Mr Mwangi argued that the termination was contrary to the applicable law and in total breach and violation of his employment and labour rights.
Further, the former manager said that the reason for redundancy was stated as the economic woes brought about by Covid-19 pandemic.
And although his terminal dues were stated in the letter of termination as payable, the money was not paid.
Keroche defended itself saying the adversity Covid-19 presented to the company adversely affected the brewer to the extent that its very survival in business was in jeopardy.
The company argued that faced with that reality, it had reasonable and genuine grounds for terminating Mr Mwangi and other employees.
Keroche said it was justified in sending Mr Mwangi home under Section 43(2) of the Act.
The judge, however, observed that the allegation by the company that it was adversely affected by the Covid-19 pandemic, was not proved as no statements of accounts were provided or any other records or documents to prove the claims.
Even though the judge agreed that the employer has the option of declaring a worker redundant for substantive reasons as those contemplated under Section 43 of the Employment Act, he stated that such grounds and reasons must be genuine and reasonable and not on whims or caprice.
“The court finds and holds that the termination of the claimant by the respondent on the alleged redundancy lacks in substance and procedure and the same is hereby declared unfair and unlawful,” ruled Justice Nderitu.
He awarded Mr Mwangi a housing allowance for the six years worked at 15 percent of his salary, amounting to Sh1.8 million, 12 months gross pay for unfair termination amounting to Sh2.4 million, severance pay of Sh500,000 and one month’s pay in lieu of notice of Sh200,000.
