Karen Blixen Ordered To Pay Ksh 2.6M For Firing Worker Over Text

Karen Blixen Slammed for Firing Employee Over Text After 14 Yrs

After 14 years of service at one of Karen’s most celebrated hotels, an employee received a termination notice through a text message.

The long-serving accountant at Karen Blixen Coffee Garden & Cottages was informed on May 2, 2018, via SMS, after taking accumulated leave, to extend his leave and await further instructions from management.

However, the instructions never came, and six months later, on November 1, 2018, he received a phone call from the HR informing him that he had lost his job.

Consequently, the Employment and Labour Relations Court has ordered Karen Blixen Coffee Garden & Cottages Limited to pay the former employee Ksh2,642,204.80 for the damages caused.

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The Court Ruling Against Karen Blixen

The court found, in a September 26 judgment, that the luxury resort had unlawfully terminated him over a text message and phone call.

In her judgment, Lady Justice J.W. Keli condemned the resort and ruled that Onchwati had not absconded from duty, as alleged by the employer, but had been directed by management to stay away from work.

“The court concluded from the foregoing that the claimant did not abscond duty as it was the boss of the claimant under the instruction of the Director (RW1) who stopped him from resuming work,” the ruling stated.

The judge declared the termination without a valid reason and without procedural fairness, and therefore “unlawful and unfair.”

Moreover, the ruling went further to criticize the manner in which the employer treated its long-serving employee.

The employer treated the claimant with contempt and admitted to not having responded to the follow-up on the employment keeping the claimant in limbo and obviously in distress.

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Maximum Penalty for Unlawful Firing

Given the circumstances, the court determined that the case merited the harshest sanction available under employment law.

“Taking the foregoing into account the court finds and holds that this case merited maximum compensation of the 12 months gross salary which is awarded thus Ksh1,837,339.20,” the judgment read.

The court also awarded the employee Ksh153,111.60 as one month’s salary in lieu of notice, bringing the subtotal for unlawful termination to nearly Ksh2 million.

The ruling emphasized that the maximum award was justified because the accountant had a clean disciplinary record, had worked at the company for over a decade, and had been left in distress by the employer’s refusal to clarify his employment status.

On the other hand, the court uncovered evidence showing that the resort deducted loan repayments from the employer’s salary under a Check Off Arrangement with NIC Bank but failed to remit the money.

From August 2017 to October 2018, the employer withheld Kshs651,754, leaving the accountant to suffer the consequences.

Due to the non-remittance, the employee’s loan account accrued interest and penalties, ultimately leading to his being blacklisted with the Credit Reference Bureau (CRB).

“The respondent simply retained the deducted money instead of remitting it to NIC Bank.

“It is considered an unfair labor practice to deduct an employee’s salary under checkoff and fail to remit it to the bank.”