When tables turn: Nakuru doctor who sought Sh2m from employer asked to pay Sh90,000 for breach of contract

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Nakuru doctor who sought Sh2m from employer asked to pay Sh90,000 for breach of contract


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What you need to know:

  • The court heard that the doctor was employed when the industry was going through the unprecedented Covid-19 period, which caused the hospital to undergo serious cash flow challenges occasioned by the reduction in outpatient utilization, hospital admissions, decline of hospital claims by third parties as well as delay in remittance of payments by the insurance providers overwhelmed by unprecedented claims.
  • The hospital said the challenges were brought to the attention of all staff, and three options were issued, including declaration of redundancy, voluntary resignation or delayed salary.

A doctor who resigned from his employment during the Covid-19 pandemic for alleged delay in salary payment will pay a hospital close to Sh90,000 for breach of contract.

Dr Juma Musa had moved to court seeking Sh2 million compensation from his employer - Evans Sunrise Centre in Nakuru - as compensation and damages for what he claimed was constructive and wrongful dismissal.

The amount, he said, arose from 12 months’ salary, pro-rated leave pays for 10 months, one month's salary in lieu of notice and two months’ salary arrears.

Dr Musa, who was employed as the hospital's resident medical doctor, had served for only eight months before he resigned after getting another job with the Taita Taveta Public Service Board.

But the court found Dr Musa at fault for having resigned without tendering and serving the notice in full and must pay damages for the inconveniences he caused the hospital.

“The claimant admitted that he did not serve his entire notice period having given the notice on October 10, 2021, to October 31, 2021. The notice was less than 21 days. I therefore find the counterclaim proved to that extent and I award the respondents Sh 88,100,” ruled Justice Hellen Wasilwa, sitting at the Nakuru Employment and Labour Relations Court.

In his petition filed on April 13, 2022, Dr Musa claimed to have been employed by the hospital on January 1, 2021, as a resident Medical Doctor for a two-year renewable contract on a monthly salary of Sh130,000.

He told the court that he served diligently for eight months before the hospital stopped remitting his salary for September before he decided to resign the following month for the said reasons.

He claimed to have served his notice via email, which he served before leaving the employment.

The hospital denied the claims by the doctor, who it said resigned on his own volition after getting another job.

The court heard that the doctor was employed when the industry was going through the unprecedented Covid-19 period, which caused the hospital to undergo serious cash flow challenges occasioned by the reduction in outpatient utilization, hospital admissions, decline of hospital claims by third parties as well as delay in remittance of payments by the insurance providers overwhelmed by unprecedented claims.

The hospital said the challenges were brought to the attention of all staff, and three options were issued, including declaration of redundancy, voluntary resignation or delayed salary.

The court heard that the doctor refused to sign the discharge voucher to allow for dues owed to him to be processed. He was also accused of sending unsigned resignation letters via email after he had exited the job.

The hospital further filed a counterclaim inviting the court to look at elements of breach of employment contract by the doctor, who it said failed to serve his contractual notice, signing an unsigned resignation letter after exiting work and failing to submit clearance forms. He also failed to sign the discharge voucher of terminal dues and didn't give one month's notice as agreed in the employment contract.

The court found that the doctor had resigned of his own volition upon receiving another job at Taita Taveta County and not because of frustration by the hospital.

Justice Wasilwa further dismissed the claim for wrongful dismissal for lack of merit and awarded the hospital the damages plus the interests at court rates from the date of judgment.