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ELRCAllowedCause No. 82 of 2001· [2002] KEELRC 31 (KLR)

KENYA CHEMICAL & ALLIED WORKERS’ UNION v LABORATORY & ALLIED LTD [2002] KEELRC 31 (KLR)

High Court of Kenya (Industrial Court)
23 January 2002
CCCharles P. Chemmuttut
422 words in judgment
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The bottom line

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Kenya's Industrial Court converted a union–employer settlement into a binding award, paying each dismissed worker Kshs. 44,715 in full and final settlement.

What this practically means

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Executive summary

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This was a trade dispute referred to the Industrial Court by the Minister for Labour on 22nd August 2001 under Section 8 of the Trade Disputes Act, Cap. 234, concerning the termination of services of two grievants, Ms. Susan Mueni Ndambuki and Ms. Roda Kanji Mutinda. The reference, accompanied by statutory certificates from the Labour Commissioner and the Minister under Section 14(9)(e) and (f), was received on 27th August 2001. Directions were issued for the filing of written memoranda; the Union filed its memorandum on 5th October 2001 but the Company did not reply. Before the fixed hearing date, the parties on 21st January 2002 filed a memorandum of settlement dated 9th November 2001, signed by Mr. Jagdish G. Dixit for the Company and Cllr. Fanuel Y. Ajwang for the Union, and witnessed by Mr. L.W. Kariuki of the F.K.E. The settlement provided for payment to each grievant of Kshs. 44,715.00, subject to statutory deductions, in full and final settlement, comprising two months' notice (Kshs. 9,756.00), salary for February 1998 (Kshs. 4,878.00), pro-rata leave (Kshs. 14,634.00), three months' compensation (Kshs. 3,252.00) and salary/gratuity for 5 years at 15 days per year (Kshs. 12,195.00). Chemmuttut J found the terms fair and reasonable and entered an award by consent adopting them on 23rd January 2002. No costs order was recorded.

Key legal issues

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01

Effect and adoption of a memorandum of settlement in a referred trade dispute

Holding

The court adopted the memorandum of settlement dated 9th November 2001 as its award, directing payment of Kshs. 44,715.00 to each grievant subject to statutory deductions in full and final settlement.

Reasoning

The dispute was referred by the Minister for Labour under Section 8 of the Trade Disputes Act with statutory certificates from the Labour Commissioner and the Minister under Section 14(9)(e) and (f). Before hearing, on 21st January 2002, the parties filed a memorandum of settlement signed by their authorised representatives and witnessed by an F.K.E. officer. The court, being satisfied the negotiated terms were fair and reasonable, exercised its power to enter an award by consent adopting those terms.

p. 1

Legal principles established

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  • Where parties to a referred trade dispute reach a settlement, the court may enter a consent award on the terms of the settlement if satisfied they are fair and reasonable.

Court orders

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  1. 1.An award by consent entered in terms of the memorandum of settlement dated 9th November 2001
  2. 2.Payment to each grievant (Susan Mueni Ndambuki and Roda Kanji Mutinda) of Kshs. 44,715.00, subject to statutory deductions, in full and final settlement of their claims

Authorities

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Legislation

  • Trade Disputes Act, Cap. 234Section 8
  • Trade Disputes Act, Cap. 234Section 14(9)(e) and (f)
Jurisdiction invoked
Section 8 of the Trade Disputes Act, Cap. 234 (dispute referred 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 CHEMICAL & ALLIED WORKERS’ UNION v LABORATORY & ALLIED LTD [2002] KEELRC 31 (KLR)", Case Analysis (2002). Cause No. 82 of 2001. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2002/31/eng@2002-01-23

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