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Court of AppealDismissedEmployment and Labour Relations Appeal from E&LRC Kericho Cause No. 218 of 2015· [2024] KECA 258 (KLR)

Sotik Highlands Tea Estate Ltd v Kenya Plantation and Agricultural Workers Union (Civil Appeal 8 of 2017) [2024] KECA 258 (KLR)

Court of Appeal
8 March 2024
8,502 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~34 min to read original · ~4 min brief

The bottom line

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Employers can fire striking workers, but the Court of Appeal confirmed each employee must still get an individual fair hearing before dismissal.

What this practically means

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Executive summary

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The Court of Appeal at Nakuru (Sicha, Nyamweya and Korir, JJA) dismissed an employer's appeal against the judgment of D.K. Marete J. of the Employment and Labour Relations Court at Kericho, which had found the summary dismissal of 232 tea pluckers unfair despite their participation in an unprotected strike. The Court agreed the 7 June 2012 strike was unprotected, depriving the grievants of section 46 Employment Act protection and validating the employer's reason for dismissal. However, it held the dismissal procedure - group show-cause letters read by loudhailer and collective disciplinary assembly - failed the fair-hearing requirements of section 41 of the Employment Act and Articles 47 and 50(1) of the Constitution, since not every employee was reached. The Court affirmed the awards of May 2012 salary, one month's pay in lieu of notice and terminal benefits, finding no misdirection in the trial court's exercise of discretion under section 49. On the counterclaim, the Court adopted a three-part test for employer claims against unions (unprotected strike; loss caused by it; union complicity) and, accepting comparative South African and United States authority, confirmed that an employer may in principle sue a trade union for damages arising from an unprotected strike. On the facts, the strike was spontaneous and the union intervened only to resolve it, so no nexus was established. The Court also held the trial judgment was complete despite the direction to the Commissioner of Labour to compute dues, since the boundaries of the computation were fixed by the orders. The appeal was dismissed with costs to the union.

Key legal issues

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01

Lawfulness of termination of employees who took part in an unprotected strike

Holding

The reason for dismissal was valid because the grievants engaged in an unprotected strike, but the termination was unfair because the employer adopted a collective/blanketed disciplinary procedure rather than affording each employee an individual fair hearing.

Reasoning

Sections 76, 78 and 79 of the Labour Relations Act prescribe procedural requirements for strikes, and non-compliance rendered the strike unprotected, removing section 46 Employment Act protection and exposing the employees to discipline. However, section 41 Employment Act and Articles 47 and 50(1) of the Constitution mandate an individualised process: notice of allegations understood by the employee and a chance to respond. Service by loudhailer and group assembly did not guarantee all employees knew of or could attend hearings, so the dismissal failed the fairness test.

p. 8
02

Liability of a trade union for losses arising from an unprotected strike

Holding

An employer can sue a trade union for damages arising from an unprotected strike, but must prove the three Rustenburg Platinum Mines requirements; on the facts there was no nexus between the union and the spontaneous strike, so the counterclaim failed.

Reasoning

Section 80 of the Labour Relations Act limits remedies against employees, but section 12 of the Employment and Labour Relations Court Act, 2011 empowers the E&LRC to award compensation or damages in any circumstances, including claims against trade unions. Comparative South African and US authority confirms union liability where the union authorises, instigates or ratifies the strike or fails to take reasonable precautions. Here the strike was spontaneous, initiated by grievants on their own motion, and the union intervened only afterwards to resolve it.

p. 13
03

Interference with discretionary remedies for unfair termination

Holding

The Court declined to interfere with the trial court's exercise of discretion in awarding May 2012 salary, one month's pay in lieu of notice and terminal benefits, since no misdirection or injustice was shown and the appellant adduced no proof of payment.

Reasoning

Remedies under section 49 of the Employment Act are discretionary; an appellate court interferes only where the judge misdirected himself or was clearly wrong and occasioned injustice. On the salary claim the appellant merely denied it without adducing payment vouchers or other proof. The grievants' contributory fault through the unprotected strike was already taken into account by the trial court in confining the awards.

p. 15
04

Completeness of the trial judgment delegating computation to the Commissioner of Labour

Holding

The judgment was complete and not a delegation of judicial function because the orders defined the boundaries of the computation; the direction merely facilitated execution.

Reasoning

While a judgment must be complete when pronounced and judicial functions cannot be delegated, the principle in Kenya Revenue Authority v Menginya Murgani was distinguishable: the Commissioner of Labour was directed to calculate specified, already-identified heads of award within defined boundaries under orders (ii), (iii) and (iv). The order was therefore ministerial in character and unobjectionable.

p. 15

Legal principles established

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  • Even where an employer is entitled to dismiss employees for participating in an unprotected strike, it must still comply with the fair-hearing procedure in section 41 of the Employment Act and Articles 47 and 50(1) of the Constitution; a collective or blanket disciplinary procedure does not satisfy this requirement.
  • An employer may sue a trade union for damages arising from an unprotected strike, but must prove the strike was unprotected, that the losses flowed from it, and that the union was complicit by calling for or participating in the strike.
  • Section 12 of the Employment and Labour Relations Court Act, 2011 empowers the E&LRC to award compensation or damages for losses in an unprotected strike beyond the remedies in section 80 of the Labour Relations Act.
  • Not every undefended or unopposed claim must succeed; the claimant still bears the burden of proof.

Court orders

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  1. 1.Appeal dismissed with costs to the respondent

Authorities

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Legislation

  • Employment Actsections 41, 43, 43(1), 44, 45, 45(1), 45(2), 45(4)(b), 45(5), 46, 46(i), 47(5), 49
  • Labour Relations Actsections 76, 78, 79, 80
  • Labour Relations Act (South Africa), No. 66 of 1995sections 67(6), 67(8), 68
  • Employment and Labour Relations Court Act, 2011section 12, 12(3)
  • Evidence Actsection 107
  • Court of Appeal Rules, 2022Rule 31(1)(a)
  • Constitution of Kenya, 2010Articles 47, 50(1)

Cases cited (24)

  • Barclays Bank of Kenya Ltd v Evans Ondusa Onzere
    [2015] eKLR
  • East African Portland Cement Company Ltd v Ismael Otieno Ondingo
    CA No. 13 of 2016
  • Sotik Highlands Tea Estate Ltd v KPAWU
    [2017] eKLR
  • Peter Njuguna Chege v Timsales Ltd
    [2020] eKLR
  • Reuben Ikatwa & 17 others v Commanding Officer British Army Training Unit Kenya & Another
    [2017] eKLR
  • Kenya Revenue Authority v Menginya Murgani
    [2010] eKLR
  • Robert Kaingu & others v Cook “N” Lite
    [2019] eKLR
  • KPAWU v Uniliver Tea Kenya Ltd
    [2017] eKLR
  • Mohamed Yakub Athman & 29 others v Kenya Ports Authority
    [2016] eKLR
  • Muriungi Kanoru Jeremiah v Stephen Ungu M’warabua
    [2015] eKLR
  • Kenya Pipeline Company Ltd v Corporate Business Forms
    [2019] eKLR
  • Muthaiga Country Club v Kudheiha Workers
    [2017] eKLR
  • Kenya Revenue Authority v Reuwel Waithaka Gitahi & 2 others
    [2019] eKLR
  • Abok James Odera T/A A.J Odera & Associates v John Patrick Machira T/A Machira & Co. Advocates
    [2013] eKLR
  • Pius Machafu Isindu v Lavington Security Guards Limited
    [2017] eKLR
  • National Bank of Kenya v Samuel Nguru Mutonya
    [2019] eKLR
  • Janet Nyandiko v Kenya Commercial Bank Limited
    [2017] eKLR
  • Mukoma v Cannon Assurance Ltd
    [2022] KECA 86 (KLR)
  • Red Lands Roses Limited v Kenya Plantations and Agricultural Workers Union
    [2020] eKLR
  • Rustenburg Platinum Mines v Mouthpiece Workers Union
    [2002] 1 BLLR 84 (LC)
  • Mondi Ltd-Mondi Kraft Division v Chemical Energy Paper Printing Wood & Allied Workers Union and Others
    [2005] 26 ILJ 1458 (LC)
  • Glacier Northwest, Inc. v International Brotherhood of Teamsters Local Union No. 174
    No. 21-1449, 598 U.S.
  • Kenfreight (E.A) Limited v Benson K Nguti
    [2019] eKLR
  • Coffee Board of Kenya v Thika Coffee Mills Limited & 2 Others
    [2014] eKLR
On appeal from
Employment and Labour Relations Court, Kericho
Cause No. 218 of 2015
Jurisdiction invoked
First appeal to the Court of Appeal under Rule 31(1)(a) of the Court of Appeal Rules, 2022

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Sotik Highlands Tea Estate Ltd v Kenya Plantation and Agricultural Workers Union (Civil Appeal 8 of 2017) [2024] KECA 258 (KLR)", Case Analysis (2024). Employment and Labour Relations Appeal from E&LRC Kericho Cause No. 218 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/258/eng@2024-03-08

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