A Kenyan employment court at Kisumu has refined the understanding of terminal benefits in a ruling on the dismissal of a domestic worker. While upholding the core finding that the worker was fired unfairly, the court adjusted the financial compensation, drawing important distinctions between different types of employee payments.
The dispute pitted Gladys Misango against her former employer, Rahim Ibrahim Ramzan. Ms. Misango stated that after six years of work as a house servant, her employment was ended without notice or a valid reason in March 2024. She further claimed she had been underpaid throughout her service and denied essential benefits like a house allowance and paid leave.
Mr. Ramzan presented a different version of events, contending that Ms. Misango was the one who ended the employment by leaving her job without explanation and failing to return.
On appeal, Justice Dr. Jacob Gakeri agreed with the initial court’s conclusion that the termination was unfair. The judge also affirmed the awards for underpayment and house allowance, stating these were mandatory statutory rights correctly calculated according to national wage regulations. Similarly, because the employer could not show evidence that Ms. Misango had taken her annual leave, the court upheld the payment for accrued leave days.
The appeal, however, succeeded in two important areas. The judge set aside the award for gratuity, providing a clear legal explanation that gratuity is not a standard entitlement but a discretionary gift, payable only if specifically agreed upon in a contract. It is legally separate from an employer’s obligation to contribute to a national pension scheme.
The court also reassessed the compensation awarded for the unfair dismissal itself. After considering the employee’s six years of service, her clean disciplinary record, and the fact that she did not seek reinstatement, the judge determined that an award equivalent to two months’ salary was more appropriate than the original four months.
In the end, the total award to Ms. Misango was set at Ksh. 569,717.48.
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