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ELRCOtherCause No. 79 of 2000· [2002] KEELRC 30 (KLR)

KENYA UNION OF DOMESTIC, HOTELS, EDUCATIONAL INSTITUTIONS, HOSPITALS & ALLIED WORKERS v PANAFRIC HOTEL [2002] KEELRC 30 (KLR)

Industrial Court of Kenya (High Court of Kenya, Nairobi)
15 January 2002
CCCharles P. Chemmuttut
357 words in judgment
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The bottom line

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Kenya's Industrial Court turned a signed settlement between a hotel workers' union and Panafric Hotel into a binding award, ending four employees' dismissal claims.

What this practically means

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Executive summary

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This is a consent award of the Industrial Court at Nairobi in a trade dispute referred to the court by the Minister for Labour under Section 8 of the Trade Disputes Act, Cap. 234. The dispute concerned the alleged wrongful termination of Gabriel N. Wanyoike and the wrongful dismissal of Samuel Mwangi, Douglas Njuguna and Christopher Macharia, all employed by Panafric Hotel. After protracted negotiations failed, the Union filed its memorandum on 25th July 2001 and the Hotel its reply on 20th September 2001. When the matter came up for hearing, neither party appeared; instead, the parties presented a memorandum of settlement dated 10th January 2002, signed by an Industrial Relations Officer for the Union and an Advocate for the Hotel, praying that an award by consent be entered. The settlement provided payment of Kshs. 74,128.00 to Samuel Irungu Mwangi, Kshs. 54,848.00 to Douglas Muroko Njuguna and Kshs. 31,801.00 to Christopher Macharia. The court recorded that Gabriel N. Wanyoike had already received terminal benefits of Kshs. 60,112.70 by cheque No. 004425 of 25th May 2001 and was no longer a party, so his case was treated as settled. Judge Charles P. Chemmuttut found the terms fair and reasonable and awarded accordingly on 15th January 2002. No costs order was made. The award illustrates the court's practice of converting signed settlement memoranda into binding consent awards where the terms are fair and reasonable.

Key legal issues

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01

Adoption of a memorandum of settlement as an award by consent

Holding

The court adopted the parties' signed settlement and awarded the sums agreed for the three employees

Reasoning

The parties presented a memorandum of settlement dated 10th January 2002, signed by their representatives, praying that an award by consent be entered. The court, exercising its discretion, examined the terms and concluded they were fair and reasonable, and therefore awarded accordingly, giving the settlement the force of an award of the court.

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02

Status of a claimant employee who has already received terminal benefits

Holding

Gabriel N. Wanyoike's claim for wrongful termination was treated as settled because he had received his terminal benefits of Kshs. 60,112.70 by cheque No. 004425 of 25th May 2001

Reasoning

The court recorded that Wanyoike had received his terminal benefits before the hearing, which meant he was no longer a party to the proceedings. His claim for wrongful termination therefore required no adjudication and was treated as settled alongside the consent settlement covering the other three employees.

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Legal principles established

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  • The Industrial Court may enter an award by consent where the parties present a signed memorandum of settlement whose terms the court considers fair and reasonable

Court orders

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  1. 1.Award entered by consent in terms of the memorandum of settlement dated 10th January 2002: Samuel Irungu Mwangi Kshs. 74,128.00; Douglas Muroko Njuguna Kshs. 54,848.00; Christopher Macharia Kshs. 31,801.00
  2. 2.The claim of Gabriel N. Wanyoike treated as settled, he having received terminal benefits of Kshs. 60,112.70 by cheque No. 004425 of 25th May 2001

Authorities

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Legislation

  • Trade Disputes Act, Cap. 234, Laws of KenyaSection 8
  • Trade Disputes Act, Cap. 234, Laws of KenyaSection 14(9)(e) and (f)
Jurisdiction invoked
Section 8 of the Trade Disputes Act, Cap. 234, Laws of Kenya - reference by the Minister for Labour

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, "KENYA UNION OF DOMESTIC, HOTELS, EDUCATIONAL INSTITUTIONS, HOSPITALS & ALLIED WORKERS v PANAFRIC HOTEL [2002] KEELRC 30 (KLR)", Case Analysis (2002). Cause No. 79 of 2000. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2002/30/eng@2002-01-15

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