The Employment and Labour Relations Court in Machakos has overturned a decision that had awarded an employee 12 months’ salary in compensation, ruling that rejecting a job transfer does not automatically amount to unfair termination or constructive dismissal.
In the case of Softcare Kenya Company Limited v Mutungi [2026], the court found that the employer acted within the law after reassigning an employee who had developed hearing complications while working in a noisy factory environment.
According to court documents, the employee was advised by a doctor to avoid noise exposure after being diagnosed with a hearing condition linked to her workplace.
In response, the company transferred her from packaging duties to cleaning work as part of what it said was an effort to accommodate her medical condition.
However, the employee rejected the job transfer reassignment and insisted on being moved to a security role, which the employer said was not available within the company’s structure.
Court Rules Rejecting Job Transfer Does Not Amount to Constructive Dismissal
The disagreement escalated into disciplinary proceedings after the employee declined to take up the new duties.
The employer later terminated her employment, stating that she had disobeyed lawful instructions.
She then moved to court arguing that she had been constructively dismissed and unfairly terminated, claiming the reassignment was unsuitable and exposed her to continued harm.
A trial court initially ruled in her favour and awarded her 12 months’ salary, amounting to KSh259,668, as compensation for unfair termination.
But on appeal, Lady Justice Jemimah Keli overturned that decision, finding that the evidence did not support a claim of constructive dismissal.
The judge noted that the employee had rejected a reasonable reassignment and instead demanded a position that was not available.
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Justice Keli further found that the employer had followed due process before ending the employment relationship.
The court also held that the employee’s refusal to accept the transfer could not serve as grounds for a claim of constructive dismissal.
“The court found there was no case of constructive dismissal. The dismissal was based on the ground of refusal to transfer to perform another duty, of which the Respondent refused, as she preferred another job that was not available, and the termination complied with section 41 of the Employment Act,” Justice Keli ruled.
“The respondent never resigned for constructive dismissal to be invoked. Her services were terminated. The court was persuaded that the employer offered reasonable accommodation, but the employee was not cooperative without a valid reason. The decision of the trial court is set aside.”
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Court Overturns 12-Month Payout Ruling
In another key finding, Justice Keli said the employer had made reasonable efforts to accommodate the employee’s medical condition.
“The court was persuaded that the employer offered reasonable accommodation, but the employee was not cooperative without a valid reason,” she stated.
The court set aside the compensation award and substituted it with one month’s salary in lieu of notice, amounting to KSh21,639, and ordered the company to issue the employee with a certificate of service.
“The judgment of the trial court is set aside and substituted with a judgment for the claimant,” Justice Keli ruled.
