Hotel ordered to pay chef Sh1.3m for unfair termination of his consultancy

The Bungoma Employment and Labour Relations Court has awarded a chef Sh1.3 million for unlawful termination of his contract.

Justice Jemima Keli observed that Michael Otieno Ouma, who worked as a consultant chef at Bonito Hotels Ltd between 2014 and 2017, was entitled to the pay.

“Ouma seeks salary arrears and other benefits amounting to Sh1,341,330 and has attached and produced the tabulation of the arrears. The hotel did not rebut the amount,” said Keli.

The court also ordered the hotel to foot the cost of the case.

Bonito had contested the demand, arguing that Ouma was a consultant and that “consultancy is not employment”. “The chef was not our employee, but we engaged him for consultancy services, which are purely commercial in nature and not employment,” said Bonito General Manager Alfred Agengo.

“We paid him a fee, not salary, which is a feature of the employment contract. Our engagement with him did not provide his specific duties including benefits like insurance.”

Ouma testified that on September 2, 2017 he was asked to proceed on a three-month unpaid leave due to lack of business.

In October 2, 2017 while still on unpaid leave he terminated the consultancy and sued for his arrears.