The Employment and Labour Relations Court has awarded a former employee KSh 332,034 after finding that his termination at the end of a probation period—following a payroll mix-up that saw him receive double salary—was procedurally unfair.
The claimant, Nebert Kangwana Ambula, had been employed as an Investment Officer on a one-year contract starting June 2021, subject to a three-month probation period. His contract provided for a monthly salary of KSh 84,633.
Court records show that due to an internal human resource and payroll error, the employer mistakenly paid Ambula KSh 181,491 per month, more than twice his contractual pay. Although the employee noticed the discrepancy, he did not immediately raise it.
The error was later uncovered during an internal human resource audit. According to evidence presented in court, Ambula acknowledged the overpayment and, through email correspondence, agreed to refund the excess amount through salary deductions.
Despite this cooperation, the employer terminated his contract at the end of the probation period without issuing a show-cause notice, conducting a disciplinary hearing, or affording him an opportunity to be heard.
In its determination, the court held that employees on probation are still entitled to procedural fairness, emphasizing that probationary status does not exempt employers from the requirements of equity, transparency, and due process under the Employment Act and the Constitution.
The court declared the termination unfair and awarded the claimant KSh 169,266 as compensation for unfair termination, KSh 84,633 in lieu of notice, KSh 9,068 for accrued annual leave, and KSh 59,243 as salary for September 2021, bringing the total award to KSh 332,034.
However, the court further ruled that since the overpayment was not disputed, the employer was entitled to offset the excess salary already paid. An amount of KSh 172,041 was deducted from the award, leaving a net payable sum of KSh 159,993 to the claimant.
The court also awarded KSh 9,824 as house allowance and directed that the amount payable attract interest at court rates from the date of judgment until full payment.
Each party was ordered to bear its own costs, the court noting that both sides had partially succeeded in the matter.
The judgment was delivered virtually, dated and signed in Nairobi on January 22, 2026, in Employment and Labour Relations Court Cause No. E1037 of 2023.
