Nigel Smith, the former head of deals & transactions in East Africa at KPMG, has filed a lawsuit against the international tax and audit advisory firm, seeking more than Sh150 million (approximately $1,012,722) for what he alleges is a breach of contract and constructive dismissal on December 2022.

In a case presented before the Employment and Labour Court, Smith contends that KPMG's actions amounted to constructive dismissal, warranting compensation for the unjust treatment he received during his tenure.

"The respondent's conduct was a breach going to the root of the contract of employment and showed that it no longer intended to be bound by the essential terms of the contract, constraining the claimant to treat himself as discharged from any further performance and terminate his employment," stated Smith, emphasizing his claim.

At the heart of Smith's legal action is his demand for terminal dues totalling $1,012,722, which includes his legitimate expectation of a salary up to the age of 65, calculated at $732,476.

Additional components of this claim comprise a car allowance of $23,040, pension benefits amounting to $37,434, and a bonus worth $125,025, alongside other allowances.

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Smith had served as a director in the deal advisory unit since 2015, earning a consolidated annual salary of $240,000, intended to continue until his retirement at the age of 65.

According to Smith's legal representative Donald Kipkorir, his client's entitlement to bonuses was contingent on his individual performance, the performance of his business unit, and the overall firm's performance.

Kipkorir asserts that Smith consistently demonstrated exemplary performance in his role, earning recognition from his peers and resulting in annual salary adjustments.

The most recent salary review elevated Smith's monthly earnings to $23,615, equivalent to an annual income of $283,387.

This adjustment, based on his outstanding performance, forms a pivotal element of Smith's compensation claim.

The lawsuit, which highlights the contentious issue of constructive dismissal and alleged breaches of employment contracts within the corporate sector, is set to proceed through the Employment and Labour court.

As the legal proceedings unfold, it remains to be seen how the court will adjudicate the matter and determine the outcome of Smith's substantial compensation request.