Teleperformance Ordered to Pay Former Kenya CEO KSh21.4 Million After Forced Transfer

The global digital services giant and its Kenyan subsidiary lost an employment case after Justice Hellen Wasilwa found that relocating Federico Caboni to Nigeria without consultation breached his contract. The court awarded him €147,014.66 (about KSh21.4 million), exposing the legal risks of reshuffling executives across borders without formal agreements.

A global outsourcing giant that helps major brands manage customer service, digital operations, and business processes has been ordered to pay a former Kenyan chief executive KSh21.4 million.

Justice Hellen Wasilwa ruled that Teleperformance SE and its Kenyan subsidiary, CX Services Kenya Limited, breached Federico Caboni’s employment contract by transferring him to Nigeria without proper consultation.

The Employment and Labour Relations Court found that the unilateral relocation prompted Caboni’s resignation, amounting to constructive termination.

“The respondents having employed the claimant to serve in Kenya, it was a breach of the employment contract for the respondents to unilaterally move him to Nigeria without consultation and without his concurrence,” the judge stated.

The October 21, 2026, judgement awarded Caboni €147,014.66 (approximately KSh21.4 million), alongside costs, interest, and a certificate of service.

The ruling concerns a company operating within a global industry increasingly built around outsourced customer experience, technology support, and digital business services.

Global Giant

Teleperformance, which brands itself as TP, describes its business as a global digital services operation combining people, processes, and artificial intelligence.

According to its official website, the group serves clients across approximately 170 countries and maintains a presence in nearly 100 countries.

It provides customer support, technical assistance, content moderation, back-office operations, and technology services.

Its African operations span multiple countries, supporting international businesses seeking customer experience and other outsourced services.

CX Services Kenya Limited, the first respondent, was identified in the judgement as Teleperformance’s Kenyan subsidiary.

The court dispute arose from Caboni’s appointment as its chief executive, based at the company’s Westlands offices.

His contract, signed on September 20, 2022, took effect on October 1 that year. It provided an annual fixed salary of $121,000 (approximately KSh15.7 million).

His package also included annual variable pay of $24,000 (about KSh3.1 million) and accommodation allowance of $20,000 (approximately KSh2.6 million).

Additional benefits included a company car, international medical insurance, and four annual economy-class trips to Europe.

Transfer Dispute

Caboni’s employment with the wider Teleperformance business dates back to July 2019, when he began working in Nigeria.

He subsequently assumed executive responsibilities involving Kenya, Ghana, and Nigeria, according to his court evidence.

In February 2024, he said the company directed him to hand over his Ghana responsibilities to Majorel Ghana.

The following month, Teleperformance’s president allegedly instructed him to stop serving as Kenya’s chief executive.

Caboni was told to hand over his duties to Majorel Kenya’s chief executive and relocate to Lagos.

He said the instructions came without formal termination of his Kenyan contract or a properly documented transfer.

Despite the changes, he continued receiving salary and benefits from CX Services Kenya Limited while undertaking the Nigerian assignment from Kenya.

On August 23, 2024, he received an offer for a Nigerian position described as country manager, effective September 1.

He maintained that promised discussions to formalise the terms never produced an adequate agreement.

Caboni resigned on December 18, 2024, with his departure taking effect on January 31, 2025.

He told the court that he received his January salary and payment for 22.75 accrued leave days, but other entitlements remained unpaid.

The Legal Test

Justice Wasilwa anchored the decision on Section 10(5) of the Employment Act, 2007.

The provision requires employers to consult employees, revise contracts, and provide written notification when specified employment particulars change.

The judge found that moving Caboni from Kenya to Nigeria without consultation or his concurrence breached that requirement.

“It is this breach that led the claimant to tender his resignation, which is equivalent to a constructive termination,” she held.

Constructive dismissal occurs when an employer fundamentally breaches an employment contract, effectively forcing an employee to resign.

The court considered Caboni’s resignation in that context, rather than treating it as an ordinary voluntary departure.

Neither respondent entered an appearance nor filed a defence, despite being served with court documents and hearing notices.

The case proceeded by formal proof on June 18, 2026, with Caboni testifying without cross-examination.

The judge nevertheless assessed his evidence before finding that he had established his case on a balance of probabilities.

Caboni had also alleged exclusion from executive communications lists, making his duties harder to perform.

However, the court’s express reasoning centred on the unilateral relocation.

The Award

The court awarded €60,499 (approximately KSh8.7 million) as six months’ salary in lieu of notice.

It granted €2,016.66 (about KSh293,316.86) for six accrued and unpaid leave days.

Caboni also received €24,000 (approximately KSh3.5 million) in annual bonus payments and €60,499 (about KSh8.7 million) as compensation for unfair termination.

Together, the awards totalled €147,014.66 (approximately KSh21.4 million), subject to statutory deductions.

The judge also ordered the respondents to issue a certificate of service and pay litigation costs with interest.

Caboni had sought compensation equivalent to 12 months’ salary, but the court awarded six months instead.

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The judgement did not separately explain the precise factors determining that compensation period.

It also did not award the additional six months’ notice pay claimed for the Nigerian assignment.

The ruling nevertheless sends a clear message to multinational employers restructuring operations across national borders.

International reassignment does not automatically override an employment contract or remove the statutory duty to consult employees.

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