Keroche Brewaries has suffered a blow after a High Court ordered them to pay ex-Managing director Sam Shollei Sh45.5 million for unfair and wrongful dismissal.
Employment and Labour Relations Court judge Hellen Wasilwa in a ruling said the breweries did not inform Shollei the reason for the dismissal nor subject him to any disciplinary process when it fired him in 2018.
“As provided under Section 45(2) of the Employment Act 2007, the termination of the contract was unfair and unjustified,” the judge ruled.
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Shollei, in 2020, sued Keroche for Sh75 million as compensation for unfair and wrongful dismissal saying due process was not followed when terminating his contract.
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Shollei entered into a contract with Keroche on July 10, 2017 as a managing director. The employment was to take effect on October 1, 2017 for a term of four years.
In the contractual agreement, Keroche was to pay him Sh2.5 million plus addition benefits and bonuses.
Court documents indicates that the contract provided that it could be terminated by either party giving the other three months’ notice or paying three months’ salary in lieu of notice. This was, however, extended to six months later.
Shollei was however fired on November 12, 2018 after he returned from his leave.
He was denied access to his office and was informed by his staff that the CEO had informed them in a meeting that he had been sacked.
“I was not informed the reason for the dismissal neither was I subjected to any disciplinary process as such the termination was unlawful in the eyes of the law,” he argued.
The company in response claimed it terminated Shollei’s s contract procedurally due to the poor performance.
