Employee Fired While on Sick Leave Wins Millions in Compensation

June 19, 2026

The Court of Appeal has upheld a ruling that awards over KSh4.7 million to a former employee who was fired while on sick leave.

In a judgment delivered on June 12, 2026, Justices W. Korir, L.M. Ndolo, and Ahmed Issack dismissed the organization’s appeal, affirming an earlier decision by the Employment and Labour Relations Court in favor of former salesman Hudson Kidaha Kisigwa.

Kisigwa, who had served the company for nearly five years, lost his job in May 2010 while undergoing treatment and recovering on official sick leave. He told the court that management accused him of financial impropriety without giving him a chance to defend himself, ultimately leaving him to discover his own termination through a notice in the newspaper.

The petitioner further argued that, alongside the unfair termination, the company withheld commissions he had rightfully earned during his years of service.

Conversely, the organization defended its actions by claiming the salesman failed to return to work after his sick leave expired and failed to account for funds he allegedly collected from customers. Management insisted that these allegations fully justified his immediate firing.

However, the courts rejected the company’s defense, ruling the dismissal both unfair and unlawful. The Court of Appeal agreed entirely with the lower court’s findings, permanently securing Kisigwa’s compensation of more than KSh4.7 million.

Highlighting the company’s harsh approach, the judges noted, “The respondent’s dismissal was effected without decorum, in a manner inconsistent with the dignity owed to an employee.”

The judges noted that the employer made no meaningful effort to contact Kisigwa after his sick leave ended. Instead of issuing a show-cause letter or inviting him to a disciplinary hearing, the company simply terminated his employment.

Pointing out this failure in due process, the court stated, “An employer invoking desertion as a defence to a claim of unlawful termination must demonstrate tangible efforts to reach out to the employee.”

The appellate court agreed entirely with the trial judge, ruling that the organization lacked both a valid reason for the dismissal and compliance with the procedural safeguards that employment law requires. Furthermore, the judges rejected the company’s argument that Kisigwa had failed to prove his claim for unpaid commissions.

By affirming the award of 12 months’ salary as compensation for unfair termination, the bench dismissed the appeal with costs. This decision leaves the KSh 4.7 million award from the Employment and Labour Relations Court fully intact while reinforcing the strict obligation for employers to follow due process when disciplining or terminating workers.

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