Court Orders Nairobi Hospital To Pay Ex-CEO Ksh72.9M After Another Ksh100M
The Nairobi Hospital has been ordered to pay Sh72.9 million to former CEO Gordon Otieno Odundo for unlawful dismissal.
The Employment and Labour Relations Court found that his 2019 firing was unwarranted and unlawful, citing procedural and substantive flaws in the termination process.
In his decision, Justice D.K Marete stated that the sequence of events leading to Odundo’s removal from employment did not meet the requirements of substantive and procedural fairness established by sections 41, 43, and 45 of the Employment Act of 2007.
“A case of unfair and unlawful termination of employment therefore ensues in the circumstances and I hold as such,” Marate said.
“A declaration be and is hereby issued that the claimant summary dismissal from employment was wrongful, unjustified, unfair and unlawful.”
Odundo was appointed CEO in a letter dated May 14, 2016, for a four-year term beginning October 4, 2016.
Nairobi Hospital ordered to pay former CEO Gordon Otieno Odundo Ksh 72.9 million after the Employment and Labour Relations Court ruled that his 2019 dismissal was unjustified and unlawful, citing procedural and substantive failures in the termination process.
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Odundo said that on January 14, 2021, he was presented with a letter of 90-day leave pending full investigations to determine the magnitude of financial difficulties over the last two years based on a forensic audit completed by Ernst & Young (EY).
He told the court that this was done without the authorization of the same board or his letter of appointment, but rather under the Human Resource Manual and code of conduct, which allow the board to suspend him.
Odundo told the court that he reacted to the concerns and asked for specifics on the issues presented, but the hospital’s lawyers provided vague and evasive responses.
He further informed the court that on March 27, 2019, he was served with a notice to show cause as to why his employment would not be terminated for reasons that the hospital was reviewing.
Odundo was given seven days to answer, but he was also restricted from his workplace, where he might have accessed information for a complete response to the allegations made.
He did, however, respond to this on April 5, 2019, and provided data in support of his defense, but the hospital never considered them.
He attended a disciplinary hearing on April 9, 2019, as required in the notice to show cause, but it was postponed until April 12.
He was ultimately dismissed by a letter dated April 16, 2019 on ground of gross misconduct.
The Judge noted that Odundo was issued a show cause letter, which required a response within seven days of the date of the letter.
He said Odundo was denied access to his office, where he could have assessed materials and other data relevant to answering the show cause letter.
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He added that the atmosphere in which Odundo was operating had already been poisoned and soured from the date Nairobi Hospital lawyers attempted to storm his office.
“Despite the time interval involved, the environment was not free or relaxed,” he stated.
“It was tense and indicative of a fervent determination by the Respondent (Nairobi Hospital) to rid off claimant.”
Adding: “It is no wonder that the claimant (Odundo) from day one presents a case of a pre-determination to terminate his employment.”
Court Orders Nairobi Hospital To Pay Ex-CEO Ksh72.9M After Another Ksh100M
