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Court sets tougher test for layoffs, tightens redundancy rules
Nokia head office in Espoo, Finland. A court has ruled that Nokia Solutions and Networks Kenya, a subsidiary of the Finnish firm, unlawfully declared a senior employee redundant, saying employers must prove job cuts are based on genuine operational requirements and follow fair consultation and selection procedures.
The Employment and Labour Relations Court has tightened the legal threshold for laying off workers, ruling that employers must prove a redundancy is genuine and fairly select and consult affected employees before implementing job cuts.
The court made the ruling after finding that Nokia Solutions and Networks Kenya unlawfully declared senior employee Byron Otega redundant, ordering the telecommunications firm to pay him Sh9.8 million in compensation.
