Ex-General Manager Wins Sh800,000 After Being Fired by Text Message

The Employment and Labour Relations Court in Nairobi has ordered Topcare Lands Investment Limited to pay a former employee Sh800,000 after ruling that her dismissal by text message amounted to unlawful termination.

The case was filed by Lydia Wanjiku, who said she joined the Kiambu-based land selling company in January 2022 as General Manager with a monthly salary of Sh200,000. About a month later, she was suspended indefinitely without pay through a text message sent by the company’s Chief Executive Officer, James Macharia.

Ms Wanjiku told the court that although she had not been issued with a written contract, she had been hired under an oral agreement. She said she reported to the company’s offices and carried out her duties in the role. After her suspension, she sent demand letters seeking resolution, but the company did not respond. She later filed the case in November 2022.

In its defence, Topcare Lands Investment Limited denied that she had been formally employed. The company said she was on probation and had not received a written contract. It also claimed that the Sh200,000 payment she received included both probationary pay and notice pay.

Justice Linnet Ndolo rejected the company’s argument, noting that its own affidavit acknowledged that Ms Wanjiku had been hired on probation and paid a monthly salary. The judge said the position of General Manager was central to the company’s operations and could not be treated as a minor role. She added that the absence of a written contract did not invalidate the employment relationship.

“The respondent chose not to document the claimant’s employment and the tale about a probationary appointment therefore collapses,” Justice Ndolo said in the ruling.

The court awarded Ms Wanjiku three months’ salary as compensation, totalling Sh600,000. She was also granted Sh200,000 in lieu of notice, bringing the total award to Sh800,000.

Topcare Lands Investment Limited is a family-run company chaired by Peter Muburi. Reverend Amos Karuri serves as managing director, while James Macharia is the chief executive officer.

The judgment states that employees are entitled to legal protection even when an employer fails to issue a written contract. It also affirms that probationary appointments must still follow legal procedures for termination.