Mridul Chakraborty v Chemigas Limited [2020] eKLR Case Summary

Court
Employment and Labour Relations Court at Nairobi
Category
Civil
Judge(s)
Hon. Justice Hellen S. Wasilwa
Judgment Date
October 06, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the key legal insights from Mridul Chakraborty v Chemigas Limited [2020] eKLR. This case summary delves into the essential rulings and implications for future cases.

Case Brief: Mridul Chakraborty v Chemigas Limited [2020] eKLR

1. Case Information
- Name of the Case: Mridul Chakraborty v. Chemigas Limited
- Case Number: Cause No. E501 of 2020
- Court: Employment and Labour Relations Court at Nairobi
- Date Delivered: 6th October 2020
- Category of Law: Civil
- Judge(s): Hon. Justice Hellen S. Wasilwa
- Country: Kenya

2. Questions Presented
The central legal issues presented to the court included:
1. Whether the Respondent unlawfully terminated the Claimant's employment and if so, whether the Claimant is entitled to his terminal benefits.
2. Whether the Respondent should be restrained from repatriating the Claimant before fulfilling its contractual obligations.
3. Whether the Claimant is entitled to interim orders regarding his employment benefits pending the determination of the case.

3. Facts of the Case
The Claimant, Mridul Chakraborty, was employed as an expatriate Chief Chemical Engineer by the Respondent, Chemigas Limited, under a contract dated 22nd May 2019. The Claimant's employment included a gross monthly salary of Kshs. 642,277 and various benefits. In April 2020, the Respondent unilaterally reduced the Claimant's salary to Kshs. 449,593 and subsequently withdrew several benefits, including housing and medical coverage, claiming economic distress due to the COVID-19 pandemic. The Claimant alleged that he was unlawfully terminated and forced to return to India without fulfilling the contractual obligations regarding his terminal dues.

4. Procedural History
The Claimant filed a Notice of Motion on 8th September 2020, seeking urgent interim reliefs to restrain the Respondent from terminating his employment and denying him benefits. The Respondent responded with a Replying Affidavit on 11th September 2020, asserting that the Claimant was not terminated but rather placed on unpaid leave due to economic circumstances. The application was argued through written submissions, with the Claimant asserting wrongful dismissal and the Respondent denying any termination.

5. Analysis
- Rules: The court considered the Employment Act, 2007, particularly sections concerning unlawful termination and employee rights. The court also referenced Article 41 and 47(5) of the Kenyan Constitution and ILO Convention 158 regarding termination of employment.

- Case Law: The court cited the case of *Moses Kamau & 6 Others v. Signature Holdings (E.A) Ltd* (2020) eKLR, which acknowledged the economic impact of the COVID-19 pandemic on employment relations, and *Kenya Aviation Workers Union v. Kenya Airways PLC & 2 Others* (2020) eKLR, emphasizing the need to balance employer and employee rights during economic hardships.

- Application: The court found that despite the Respondent's claims of economic distress, the manner in which the Claimant was treated amounted to an unlawful termination. The court reasoned that the Respondent's actions, including the forced repatriation and withdrawal of benefits, effectively terminated the Claimant's employment without due process. Therefore, the court granted the Claimant's request for interim reliefs.

6. Conclusion
The court ruled in favor of the Claimant, confirming the interim orders to restrain the Respondent from terminating the Claimant's employment and from repatriating him before fulfilling contractual obligations. The court emphasized the importance of adhering to employment laws and protecting workers' rights, especially during economic crises.

7. Dissent
There were no dissenting opinions noted in the ruling.

8. Summary
The Employment and Labour Relations Court ruled in favor of Mridul Chakraborty, affirming that Chemigas Limited unlawfully terminated his employment and deprived him of his benefits. The court's decision underscores the necessity for employers to comply with contractual obligations and employment laws, particularly in the context of economic challenges posed by the COVID-19 pandemic. The ruling serves as a significant precedent for protecting employee rights in similar circumstances.

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