City Oil Company Forced To Compensate Ex-Employee For Unfair Termination Of Service

A former member of staff at City Oil (K) Ltd finally had the last laugh when Hon.Lady Justice Hellen Wasilwa ruled that his termination of employment was unlawful. Adan Mohammed Abdulahi had moved to court to seek compensation over what he termed as unfair termination of services. 

The judge in her ruling awarded him Ksh. 55,000 one month salary in lieu of notice, compensation for unfair and unlawful dismissal Ksh. 550,000, payment of house allowance not paid being a 15% of salary per month Ksh. 420,750, days’ pay as service pay Ksh. 55,000, the total awarded amount came to Ksh.1,053,250.

According to City Oil (K) Ltd, Mr Abdulahi used abusive words against one of its strategic partners, prompting the company to issue a warning letter. The company further claimed that Abdulahi on various occasions abused his office by extorting money from the company transporters which tainted the company’s image. They further claimed that he had formed a habit of absconding from duty without giving any reason; he however denied all the allegations.

The judge found out that Abdulahi was unfairly terminated without being issued with a notice to show cause nor being subjected to any disciplinary hearing but was sacked over the phone and even before his contract was terminated someone had already taken over his duties.

Further, there was no evidence offered by City Oil (K) Ltd to indicate that Abdulahi was subjected to a fair disciplinary process. The validity of the reason leading to his termination was also not established. The ruling reads in part “Therefore find that the Claimant’s termination was unfair and unjustified under Section 45 (2) of the Employment Act

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