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Nation Media ordered to pay ex-employee Sh3.8 million

Nation Media Group building on Kimathi Street, Nairobi
Nation Media Group building on Kimathi Street, Nairobi

The Court of Appeal has upheld the Employment and Labour Relations Court (ELRC) judgment in the case of Mugumo Munene versus Nation Media Group. 

The appeal, filed by Nation Media Group, challenged the decision to award Munene compensation for unfair termination.

Munene, who worked for the media giant 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 would be made redundant as part of a company reorganisation. 

Nation Center-The head office of Nation Media Group

Munene claimed that he was not given prior notice of the redundancy and that the termination process was not conducted in accordance with the law. 

He argued that the redundancy letter was handed to him on the same day he was informed of his termination, denying him an opportunity to review or consult.

Additionally, Munene contended that his redundancy was unjustified as the company did not follow the required legal procedures, such as notifying the labour officer or consulting with the employee union. 

He further claimed that his terminal dues were calculated incorrectly and that he was discriminated against compared to other employees.

The Employment and Labour Relations Court had ruled in Munene's favour, declaring the termination unfair and awarding him Sh3,844,110 as compensation for the unlawful dismissal. 

The Court noted that the redundancy process did not meet the legal requirements set out in the Employment Act, particularly with regard to notice and consultation.

Nation Media Group appealed the decision, arguing that the redundancy was justified due to restructuring and that the payments made to Munene at the time of his termination were sufficient. 

However, the Court of Appeal found that the appellant failed to provide adequate evidence to demonstrate the validity of the redundancy or to show compliance with the legal requirements for such terminations.

In its ruling, the Court emphasised that employers must follow due process when declaring redundancies, including providing adequate notice and consultation with affected employees and their unions. 

Kodris Africa CEO Mugumo Munene

As a result, the Court of Appeal dismissed the appeal and upheld the award of Sh3,844,110 to Munene, along with the costs of the case. 

This judgment serves as a reminder of the importance of adhering to fair employment practices and ensuring that terminations are both legally justified and procedurally sound.

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