The director of Five Forty Aviation limited Donald Earle Smith has been released on a personal bond of Sh1 million.
The businessman had been arrested and arraigned before the Employment and Labour Relations Court over the failure to settle millions awarded to the firm’s former corporate quality manager Stirling Dyer.
Other than executing the personal bond, Smith was directed to be religiously attending court whenever required to do so.
The case will be mentioned on 30 July 2025 before Justice Jemimah Wanza Keli for further orders.
The court issued the warrant of arrest against Smith on July 14.
“You are hereby directed to arrest the said Donald Earle Smith be brought to court immediately for failing to pay decretal amount Sh. 19,867,407.52,” stated the warrant of arrest.
The Employment and Labour Relations Court agreed with Dyer and found that the conduct of the aviation company amounted to a constructive dismissal.
“The fact that the Five Forty Aviation’s conduct hurt Stirling Dyer and his family, the industry in which Dyer was working in the period of service of Dyer, being 5 years, that the conduct was counter to a legitimate expectation of any reasonable employee, and award compensation of eleven months’ gross salary Sh. 6,600,000 ,” court ruled.
Dyer told the court that on or about 1 June 2017, he was employed by the Five Forty Aviation company as the Corporate Quality Manager.
The former manager was earning a consolidated salary of Sh. 600,000.
He and the company duly executed an Employment Contract dated 1st June 2017.
Under the terms of the Employment Contract, in addition to his salary, Dyer was entitled to be paid an out-of-station audit allowance of USD 4,000.00 in cash per month and medical and accident insurance.
He further asserted that he provided exemplary service, and performed his duties with zeal and dedication.
However, in December 2018, Five Forty Aviation company began to delay his salary, failed to remit his out of station audit allowance of USD 4,000.00 per month and to pay for his medical and accident insurance.
Further, during the COVID-19 pandemic, the aviation firm unilaterally reduced his salary and allowances by half, effective 1 March 2020.
He was requested to execute a letter accepting the half pay for the period 1 March 2020 to 30 June 2020.
Subsequently, the aviation company issued him with a letter extending the period during which it would continue paying half salary for a further three months, from 1 July 2020 to 30 September 2020. He had no option but to accept.
Thereafter, there was no communication regarding the salary status, however, the aviation company continued to pay him half the salary.
Despite the aviation company resuming normal operations, it still continued paying him a half salary, which forced him to tender a resignation letter on the 23 of November 2021.
The aviation’s Chief Executive Officer Don Smith didn’t accept the resignation but convinced him to stay on as his issue would be sorted.
He asserted that the assurance notwithstanding, the aviation firm continued with the delay in paying his salaries and at the reduced amount. This prompted him to tender another resignation letter on the 22nd of May 2022.
There's no story that cannot be told. We cover the stories that others don't want to be told, we bring you all the news you need. If you have tips, exposes or any story you need to be told bluntly and all queries write to us [email protected] also find us on Telegram
