The troubled Keroche Breweries has been dealt with a major blow after the Employment and Labour Relations Court ordered the brewer to pay former Managing Director Sam Krus Shollei Sh45.6million for irregular dismissal in 2019.
Presiding over the case, Judge Justice Hellen Wasilwa ruled that there was no indication that Shollei was subjected to any performance contracting nor was there any evidence that his poor performance was proven based on set targets or deliberations.
“No disciplinary hearing was conducted. As provided under Section 45(2) of the Employment Act 2007, the termination of the contract was unfair and unjustified,” she ruled.
“The complainant was further terminated without being given notice and so he is entitled to notice pay. Having stated as above and having found the claimant’s termination unfair and unjustified, I find for claimant and award him as follows; 6 months’ notice pay as per the addendum contract Sh15 million,” she added.
Sam, the former CEO of Standard Media Group and ex-husband of estranged Uasin Gishu Women Representative Gladys Boss Shollei, was also awarded October 2018 salary of Sh2,500,000 and ten months salary as compensation for unfair and unlawful termination of Sh25 million.
He was also awarded a gratuity pay of 10 per cent basic pay as pleaded of Sh5.5 million, leave pay of Sh45.5 million.
“The respondent will pay the cost of this suit plus interest at court rates with effect from the date of this judgement,” ruled Justice Wasilwa.
According to Shollei, in a contract dated July 10, 2017, he was employed by the brewer as its Managing Director on a gross salary of Sh2.5 million for a period of 4 years.
However, Shollei’s reporting date was postponed from October to January 2018 due to political instability.
“For the period the brewer delayed my reporting, it was a common understanding that I would be paid half of the agreed salary,” he stated in court papers.
In February 2018, the company’s CEO left the country with the Chairman for treatment for a period of 6 months leaving Shollei as the acting CEO.
Upon resuming work in August 2018, Shollei sent the CEO an update on the day-to-day running of the company, however, the CEO threatened to invoke a termination clause on the alleged basis that Shollei was not promoting similar agenda the company’s top management prompting his dismissal.
According to Shollei, he was neither informed reasons for his dismissal nor subjected to any disciplinary process.
In their petition, the company claimed that Shollei was always at loggerheads with the policies and ideologies of the top management and tried on various occasions to superimpose his strategies to the detriment of the success of the company.
On the email sent by Shollei on the day to day running of the company when the CEO was away, the company claimed that email was demeaning and disrespectful.
According to the company, the complainant was dismissed on justifiable ground since he was paid his terminal dues of Sh7 million.