Court orders school to pay cleaner Sh86,400 for wrongful dismissal

The High Court in Eldoret has ordered Lions School to pay Sh86,400 to a 60-year-old cleaner for the wrongful termination of her employment contract during Covid-19. Justice Maureen Onyango said the termination of Grace Muhutia, who is now dead, because of her advanced age was illegal as she was never given a notice. "On behalf of the board of management of Lions School Eldoret, may I kindly bring to your attention that the board has decided to retire you? By grace of the Lord, you have attained the age of 60 years," read Muhutia's dismissal letter from the board. In her judgement, Justice Onyango said the termination of Muhutia's employment was without valid reason, as attaining the age of 60 per se without a policy on retirement age is not a valid reason for termination of employment. "The termination of the Muhutia (Claimant's) employment was unfair in the circumstances of this case. She had worked for Lions School (respondent) for about 20 years and was let go during the COVID-19 pandemic with no salary and no terminal benefits," said Justice Onyango. The school employed Muhutia as a cleaner on January 3, 2000, where she worked until June 29, 2020. Muhutia, who passed on, started with a salary of sh900, and it progressively increased to sh14,400 per month by the time of her retirement. The late Muhutia, through Absolom Agalomba, sued the Board of Management of Lions School, seeking sh468,204 for deducted salary, gratuity, three months' salary, housing allowance, damages for unfair termination, and the cost of the suit, including Grace Muhutia. She also sought National Hospital Insurance Funds (NHIF). Muhutia said she was surprised at the retirement notice and that she was not aware of any policy on retirement at the age of 60 years. She said that the termination letter took her by surprise, especially during the COVID-19 pandemic difficulties. "As per the letter dated June 29, 2020, requesting me to retire without benefits, I find this difficult since I have children who are still in school and I am the sole breadwinner in the family. Please do consider my humble request to retire at this moment and let me be paid by benefits for the period I have worked for," Muhutia wrote to the school. Justice Onyango noted that Muhutia had been on a reduced salary of 30 per cent following a reduction of the same by 70 per cent in April 2020 and that it would have cost the school nothing to keep her employed. The judge said that it was insensitive of the school to send Muhutia on compulsory leave on June 12, 2020, and then follow it up on June 29 with a letter of retirement. Justice Onyango said the school should have waited until schools reopened to retire her after reinstating her salary and giving her adequate notice, taking into account the extraordinary situation posed by the COVID-19 pandemic. "It is my finding that the termination was unjust and inequitable based on the circumstances of the case. Under these circumstances, compensation equivalent to 6 months' salary would be reasonable, and I award the claimant the same at sh86,400," said Justice Onyanngo. Justice Onyango said the employer must inform the employee as part of the employment particulars of the terms under which employment would cease, including the retirement age, if any. In their defence, the Board Chairman, Mr Gurnam Sabharwal, stated that the school reduced Muhuti's salary due to the closure of schools caused by the COVID-19 pandemic. Sabharwal said that, given the unanticipated and unprecedented occurrence and that no money was coming in, the school was ill-prepared to cushion itself against the financial effects. He said the decision to implement a salary reduction and send its employees, including Muhutia, on unpaid leave was justified in the circumstances. The Chair noted that the school's closure severely impacted its finances, as parents stopped paying fees due to the lack of learning activities. He said it had to rely on the small amount that parents had paid as fees before the school closed. Sabharwal said Muhutia signed the letter accepting the cutback of salary by 70 per cent, and that was not unlawful. The Chair stated that Muhutia retired upon reaching the age of 60, by the school's policy, and she received one month's salary as payment in lieu of notice, as agreed upon by both parties. Sabharwal said there was no written contract outlining the retirement age for Muhutia, adding that the school's policy requires employees to retire at 60, which was communicated upon hiring. He stated that Muhutia was granted leave throughout her tenure and received all her entitlements, including the house allowance, which formed part of her monthly remuneration. However, Muhutia said she was retired unprocedurally and only paid one month's salary in lieu of notice and not three months' salary as stipulated in her contract. She also took issue with the school's decision to reduce her salary by 70 per cent for April and May 2020 and the decision to send her on unpaid leave as a result of the COVID-19 pandemic without being consulted. Muhutia stated that NHIF and NSSF deductions from her salary were not remitted.

Court orders school to pay cleaner Sh86,400 for wrongful dismissal

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Court orders school to pay cleaner Sh86,400 for wrongful dismissal

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