DHL Supply Chain and its parent company Deutsche Post DHL Group have suffered a major blow after the court ordered Sh22million compensation claim in favour of a former employee, Jeremy Pierson Haysom over unfair termination.
Employment and Labour Relations Judge Nelson Abuodha ruled that DHL’s refusal to pay relocation costs and its subsequent termination of Haysom amounted to unfair labour practices, breaching Article 41 of the Kenyan Constitution and infringing on his constitutional rights.
The court found that Haysom had been unjustly dismissed and was therefore entitled to compensation. Although Haysom initially sought reinstatement, the court deemed this impractical since over two years had passed since the termination in 2019.
Haysom had been employed with DHL and its affiliates for over 20 years, beginning his tenure in 1998. Recognising the unlawful nature of his dismissal and the violation of his rights, Judge Abuodha awarded Haysom the maximum compensation for unfair termination, amounting to 12 months’ salary.
“In conclusion, the Claimant’s claim is hereby allowed with costs as follows: a. 12 months’ salary as compensation for unfair termination amounting to Sh22,222,812.” Justice Abuodha declared.
Haysom began his career with DHL Supply Chain in 1998 as a Business Development Director in Kenya, earning an annual salary of Sh22million, including bonuses based on the performance of DHL’s local operations and the wider Deutsche Post Group.
He also held shares in DHL Logistics, which he maintained by virtue of his role as a director.
In 2014, Haysom was offered a position in Oman with a sister company of Deutsche Post Group, which he accepted. He argued that this move did not terminate his employment contract in Kenya, stating that his relocation was communicated internally among the company’s sister companies and did not sever his existing employment ties in Kenya.
He was on a midterm assignment policy valid for up to five years, which stipulated that if no suitable position was available upon completion of the assignment, his employment contract would be terminated following Kenyan labor laws.
Haysom maintained that his Kenyan contract was never terminated and that he ended his assignment in Oman in accordance with the policy’s provisions, which allowed for assignment termination by the employee.
Throughout his tenure in Oman, his Kenyan work permit remained active until 2017, with the respondent renewing it during this period.
