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Court of AppealDismissedCivil Appeal 386 of 2017· [2022] KECA 857 (KLR)

Bunny Industries Limited v Tailors & Textiles Workers Union

Court of Appeal
10 June 2022
2,941 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that unions can sue for members without a CBA, and long-serving casual workers deserve permanent-employee benefits.

What this practically means

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Executive summary

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This was a first appeal by Bunny Industries Limited against the judgment of the Employment and Labour Relations Court (Nduma Nderi, J.) awarding seven grievants, represented by their union, terminal benefits totalling Ksh.590,280. The trial court had found that although the grievants were initially engaged as casuals, their long continuous service converted their employment to permanent terms under section 37(1) of the Employment Act; it found the termination lawful (the grievants having become unruly over NHIF registration) but awarded salary arrears, notice pay, annual leave and gratuity for statutory breaches. On appeal, the appellant argued the union lacked locus standi absent a CBA, that judgment was irregularly entered on the evidence of one grievant only, and that the trial court became functus officio upon finding the termination lawful. The Court of Appeal, in a single judgment of the bench, rejected each ground. It affirmed union standing on the evidence of deducted union dues, relying on section 22 of the Employment and Labour Relations Act, Article 41 of the Constitution and the Modern Soap Factory decision. It held the representative suit regular under the ELRC Procedure Rules and section 20's overriding-objective approach. Critically, it held that a finding of lawful termination did not strip the trial court of jurisdiction to award statutory entitlements; the functus officio argument failed. The appeal was dismissed in its entirety with costs to the respondent.

Key legal issues

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01

Locus standi of the union to represent grievants

Holding

The union had standing; grievants paid union dues of Ksh.200 monthly and section 22 of the Employment and Labour Relations Act permits representation by a union official.

Reasoning

The court found as a fact that the grievants were union members whose dues were deducted by the appellant and forwarded to the union. Section 22 of the Employment and Labour Relations Act allows representation by an office bearer of a trade union, and Article 41 protects labour relations. The absence of a Recognition Agreement or CBA was immaterial to standing. Membership of a union is a question of fact settled by evidence.

02

Evidence of one grievant sufficing for all

Holding

One witness could testify on behalf of all seven grievants in the representative claim; no prejudice arose.

Reasoning

Rule 9 of the ELRC (Procedure) Rules 2016 permits a suit to be instituted by one party on behalf of others with a similar cause of action, and rule 24 allows test suits. Particulars of all grievants were set out in Table 2 to the Memorandum of Claim. Section 20 of the Employment and Labour Relations Act requires the court to act without undue regard to technicalities, and the additional evidence would have been cumulative.

p. 5
03

Functus officio after finding termination lawful

Holding

The trial court was not functus officio; it retained jurisdiction to determine all framed issues, including statutory entitlements.

Reasoning

Whether termination was lawful was only one of the issues framed. Having found the appellant breached the law by treating long-serving employees as casual, the court was bound to examine compliance with the Employment Act on annual leave, gratuity and notice pay. Findings on those entitlements were independent of the lawfulness of the termination, so the awards stood.

p. 5

Legal principles established

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  • A registered trade union whose constitution so empowers has standing to institute and prosecute a claim on behalf of its employee members before the ELRC, and whether an employee is a union member is a question of fact provable by evidence.
  • A finding that termination of employment was lawful does not divest the trial court of jurisdiction to determine and award statutory employment entitlements arising from the mischaracterisation of employment as casual.
  • Long-serving casual employees are deemed permanent under section 37(1) of the Employment Act and become entitled to statutory benefits including annual leave, gratuity and notice pay.
  • In a representative suit, one claimant may testify on behalf of similarly-situated claimants whose particulars are pleaded; calling each claimant is unnecessary where their evidence would add nothing.

Court orders

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  1. 1.Appeal dismissed with costs to the respondent

Authorities

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Legislation

  • Employment and Labour Relations Court ActSection 13
  • Employment and Labour Relations Court (Procedure) Rules 2016Rule 5(11)(a)
  • Employment and Labour Relations Court (Procedure) Rules 2016Rule 9
  • Employment and Labour Relations Court (Procedure) Rules 2016Rule 24
  • Employment ActSection 37(1)
  • Employment and Labour Relations ActSection 22
  • Employment and Labour Relations ActSection 20
  • Labour Relations Act No. 14 of 2007
  • Constitution of Kenya, 2010Article 41
  • Constitution of Kenya, 2010Article 36
  • Constitution of Kenya, 2010Article 258(2)(d)
  • Court of Appeal RulesRule 29

Cases cited (2)

  • Peters v Sunday Post
    [1958] EA 424

    The deference owed by a first appellate court to the trial judge's findings of fact who saw and heard the witnesses

  • Modern Soap Factory v Kenya Shoe and Leather Workers Union
    (2020) eKLR

    A registered union whose constitution so empowers has standing to institute and represent claims on behalf of its members

On appeal from
Employment and Labour Relations Court of Kenya at Nairobi
ELRC Cause No. 1567 of 2010
Jurisdiction invoked
First appeal under Rule 29 of the Court of Appeal Rules

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Bunny Industries Limited v Tailors & Textiles Workers Union", Case Analysis (2022). Civil Appeal 386 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2022/857/eng@2022-06-10

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.