Court orders Moi High School - Kabarak to pay taylor Sh 1.5 million compensation for unlawful dismissal

A Nakuru court has ordered Moi High School, Kabarak to pay long-serving tailor a total of Sh 1.46 million for unfair termination of employment.

Gilbert Obare’s employment contract was abruptly terminated by the school management on May 31, 2023 after serving for 43 years.

The school cited ‘reduced work’ as the reason for the dismissal prompting Obare to move to court. The court however, found the termination unfair and in violation of his rights.

The decision brings to a close a labour dispute that centered around whether Obare, who had worked for the school for over four decades, was an employee or an independent contractor.

In his claim filed in September 2023, Obare argued that he had been employed by Moi High School Kabarak as a tailor since 1979, serving continuously for 43 years until his abrupt dismissal on 31 May 2023.

“I was paid a lump sum of Sh 50,000 as ‘terminal dues,’ which amount I treated as acknowledgement of an employment relationship,” he told the court.

Obare claimed he earned a monthly wage of Sh 10,990, which he said was an underpayment compared to applicable minimum wages. He further asserted that he never went on annual leave nor received leave allowance throughout his four-decade tenure.

Moi High School Kabarak, through its witnesses, including its Finance and Human Resources Manager, contended that Obare was never an employee but an independent tailor hired intermittently based on demand, especially during school admissions.

They stated he was paid on a piece-rate basis, not a salary, and that the Sh 50,000 paid to him in 2023 was merely an ex-gratia goodwill payment, not terminal dues.

The school further argued that, “Obare did not have an employment contract, staff number, or payslips. His August 2019 letter identified him as a casual tailor, not a permanent worker. Additionally, any NSSF contributions made were voluntary and at his request, no evidence of employment, and lastly, his alleged employment past age 60 was impossible, citing public-sector retirement norms.”

In its judgement, the court held that Obare had successfully proved that he was an employee.

The court found the Obare’s documents to be authentic and persuasive thereby concluding that this dismissal was without a valid reason and without following due procedure, rendering the dismissal unfair.

Furthermore, it dismissed the school’s retirement-age argument, holding that private institutions are not bound by the Public Service Commission’s retirement age.