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Directline Assurance Co. Ltd v. Jeremiah Wachira Ichaura

(2016) JELR 102697 (CA)

Court of Appeal  •  Civil Appeal 68 of 2014  •  4 Nov 2016  •  Kenya

Milton Stephen Asike Makhandia, William Ouko, Kathurima M'inoti



The respondent was employed by the appellant as a Sales and Marketing Director in charge of Mount Kenya Region. The contract of employment was to commence on 1st December, 2007 but by mutual agreement was postponedto 1st February, 2008. The respondent as per the contract was entitled to a monthly salary of Kshs.350,000/= and a production commission of 1% of all revenue he would generate in the region that surpassed 7,000,000/= per month less statutory deductions.He was also entitled to 10% of his monthly salary being paidinto the pension scheme by the appellant for as long as he remained in the appellant’s employment but could only benefit if he remained in such employment for at least 3 years. The contract further provided for a fixed term of 5 years with a termination clause of 6 months written notice.

However hardly 3 months into his employment, the respondent was served with a letter from the appellant dated 28th May, 2008 summarily dismissing him from employme…

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