Construction company loses court case after firing worker over performance

A version of this article appeared on Daily Nation.

The Employment and Labour Relations Court (ELRC) ruled that employers cannot terminate employment contracts based on allegations of low productivity without presenting solid evidence.

The decision arose from a legal dispute involving Bomi Engineering and Construction, a company operating within the local infrastructure sector.

The enterprise failed to substantiate claims leveled against its Human Resource Officer (HRO), Zippy Gacheri Nyaga, resulting in a judicial determination of unfair dismissal.

According to the court, the construction firm needed to do more than simply label an employee a poor performer.

Justice noted that corporate entities must adequately document specific performance issues, officially notify the affected worker, and offer a reasonable window for measurable improvement before executing a termination.

Ms Nyaga was terminated from her position on April 25, 2024.

Following the review of the dismissal procedures, the court found the firm's actions legally non-compliant.

The tribunal awarded Ms Nyaga Sh164,000 in general compensation.

The infrastructure firm was additionally ordered to settle outstanding notice pay and accumulated leave dues.

Legal experts within the building sector noted that this judgment establishes a strict precedent for engineering firms managing human capital.

Many construction companies frequently alter staffing levels based on project lifecycles and administrative evaluations, but standard legal processes must apply.

The ruling serves as a warning to contractors that performance-based terminations require clear metrics and performance appraisal records to withstand judicial scrutiny.