Workplace disagreements cannot automatically amount to constructive dismissal, the Employment and Labour Relations Court has ruled, dismissing a former human resource manager’s claim that she was forced out after correcting her company’s chief executive during a meeting.
Constructive dismissal occurs when an employee resigns because an employer’s conduct has made working conditions so intolerable that the employee can no longer reasonably continue working, effectively forcing them to quit.
The court said employees who resign must demonstrate a serious breach of their employment contract before alleging constructive dismissal.
The judgment arose from a dispute involving Ida Evelyn Angel, the former Group Human Resources Manager at Abyssinia Iron and Steel Limited, a local manufacturer of steel products used in construction and infrastructure projects.
Ms Angel had sued the company seeking Sh11.9 million in compensation, arguing that the company’s management created an intolerable and hostile work environment that forced her to resign in June 2023. She was based at the firm’s head office in Westlands, Nairobi.
Dispute origins
She claimed the conflict began after she corrected an alleged error made by the company’s chief executive officer during a meeting.
According to her testimony, management later brought in an external HR consultant to scrutinise her work and allegedly find grounds to dismiss her.
The former HR manager told the court that complaints were subsequently raised about her performance, and she was advised to resign because matters would become difficult if she remained.
She resigned on May 24, 2023, giving the three months’ notice required under her contract, which would have ended in August.
However, she later left employment on June 12, arguing that the workplace environment had become hostile after she declined a request by management to shorten her notice period.
Employer response
The steel manufacturer disputed the claims and argued that Ms Angel resigned voluntarily while facing performance concerns.
The company said it later discovered she had forwarded work-related emails to her personal account, prompting a notice to show cause.
In its ruling, the court found that the evidence presented did not meet the legal threshold for constructive dismissal.
“Constructive dismissal cannot be inferred merely because an employee feels uncomfortable or anticipates disciplinary action,” the court said.
It added that ordinary workplace disagreements or performance management processes should not automatically be interpreted as proof of a toxic work environment.
“The court must be cautious not to construe ordinary workplace disagreements, performance management issues, or investigations into constructive dismissal,” the ruling stated.
Court award
The court concluded that the former HR manager failed to prove that the employer’s conduct was so intolerable that she could not reasonably continue working.
Her claim for 12 months’ salary as compensation for unfair termination was therefore rejected.
However, the court found that the company had unlawfully withheld part of her pay.
Evidence presented in court showed the firm delayed her May 2023 salary because she had not submitted internal reports.
The court ruled that wages must be paid when due and cannot be withheld without lawful justification.
Ms Angel was awarded Sh498,747 for her May salary, Sh213,748 for days worked in June, and Sh302,810 for unused leave days, plus costs and interest.
Her other claims, including house allowance, overtime pay and notice pay, were dismissed.
