The Court of Appeal has upheld a ruling by the Employment and Labour Relations Court (ELRC) ordering Nation Media Group (NMG) to compensate former employee Mugumo Munene Sh3,844,110 for unfair termination.
Munene, who had worked at Nation Media Group for over 15 years, was promoted to news editor for the Sunday Nation in 2007. However, in March 2016, he was informed that his position had been declared redundant as part of a company restructuring process.
In his petition, Munene argued that he was not given prior notice of the redundancy and that the termination process did not comply with labour laws. He claimed that his redundancy letter was handed to him on the same day he was informed of his dismissal, leaving him with no opportunity for review or consultation.
Additionally, Munene alleged that Nation Media Group failed to follow legal procedures, including notifying the labour office and engaging in consultations with employee representatives before executing the redundancy.
He also contended that his terminal dues were miscalculated and that he faced discrimination compared to other employees affected by the restructuring.
The Employment and Labour Relations Court ruled in Munene’s favour, declaring the termination unlawful and awarding him compensation. The Court found that Nation Media Group failed to meet the legal threshold for redundancies, particularly in terms of notice and consultation.
Following this decision, Nation Media Group appealed, arguing that the redundancy was justified due to corporate restructuring and that the payments made to Munene at the time of his termination were adequate.
However, the Court of Appeal dismissed the appeal, ruling that the media house did not provide sufficient evidence to justify the redundancy or demonstrate compliance with employment laws.
The judges emphasized that employers must adhere to due process when declaring redundancies, including providing adequate notice and engaging in consultations with affected employees and their unions.
As a result, the Court upheld the award of Sh3,844,110 to Munene, along with the costs of the case. The ruling underscores the importance of fair employment practices and serves as a reminder to employers to ensure that terminations are legally justified and procedurally sound.
