Court Rules Refusing a Transfer Could Cost You Your Job and Compensation

The Employment and Labour Relations Court in Machakos has ruled that employees cannot automatically claim unfair dismissal simply because they disagree with a workplace transfer or reassignment.

In a judgment delivered by Lady Justice Jemimah Keli, the court allowed an appeal by Softcare Kenya Company Limited and overturned an earlier award of compensation that had been granted to former employee Phauletta Ndinda Mutungi.

The case arose after Mutungi developed hearing complications while working in a noisy factory environment.

Following medical concerns, the company reassigned her to cleaning duties.

However, she rejected the new role and insisted that she be deployed as a security guard instead.

When the company declined to place her in the preferred position and the employment relationship eventually ended, she moved to court claiming unfair termination and constructive dismissal.

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Employee Initially Won Compensation

A lower court in Mavoko initially ruled in Mutungi’s favour and awarded her Ksh 259,668, equivalent to 12 months’ salary, for unfair termination.

Softcare Kenya challenged that decision before the Employment and Labour Relations Court.

After reviewing the evidence, Justice Keli found that the employer had acted within its managerial authority when it reassigned the employee.

The judge noted that the company had invited the employee to meetings, listened to her concerns and followed the disciplinary procedures required under Section 41 of the Employment Act.

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Court Upholds Employer’s Right to Reassign Staff

The court emphasized that employers have the right to reorganise duties and assign employees to different roles, provided they act reasonably and follow the law.

Justice Keli found that the employee rejected the cleaning role because she preferred a security position that was not available at the time.

The court stated that constructive dismissal cannot be established simply because an employee dislikes a transfer or believes another position would have been more suitable.

“There must be a fundamental breach by the employer that leaves the employee with no reasonable option but to resign,” the court held.

The judge found no evidence of such a breach in this case.

Compensation Award Set Aside

As a result, the court overturned the compensation award granted by the trial court.

Mutungi was left with only one month’s salary in lieu of notice and a certificate of service.

The judgment also clarified that any claims arising from workplace injuries should be pursued separately under the Work Injury Benefits Act (WIBA).

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Court Rules Refusing a Transfer Could Cost You Your Job and Compensation
PHOTO/ROBA ASSOCIATES