The SCOK has found that “Permanent and pensionable” is not equals to employment for life.

In Francis Ngokonyo & Others v Telkom Kenya Ltd, the Court clarified that where employment is terminated, (in this case, the Appellants were terminated in July, 1991) employees cannot claim anticipated salaries up to retirement. Pay MUST follows service rendered and not the projected tenure up to retirement. The Court has held that awards for future earnings amount to unjust enrichment and offend public policy.

But the real lesson lies elsewhere:
The Appellants’ undoing was timing. Their case arose before the Employment Act, 2007 and the Constitution of Kenya, 2010. The principles of common law were ordinarily not applied into contracts unless expressly stated. As such, even though the Appellant’s right to fair hearing was violated, they fully enjoyed the reliefs provided to them in the contractual terms.

However, in today’s world – process is everything: there has to be a notice of allegations, a indispensable right to be heard and a documented & defensible decision making.

Today, such termination would certainly fail constitutional scrutiny.

Follow us Kinyua Law Advocates