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ELRCAllowedCause No. 52 of 2001· [2002] KEELRC 33 (KLR)

KENYA CHEMICAL & ALLIED WORKERS’ UNION v CROWN-BERGER KENYA LTD [2002] KEELRC 33 (KLR)

Industrial Court of Kenya
22 January 2002
CCCharles P. Chemmuttut
416 words in judgment
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The bottom line

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Kenya's Industrial Court approved a union-employer settlement paying two dismissed Crown-Berger workers notice pay, leave dues and gratuity.

What this practically means

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Executive summary

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This was a trade dispute referred to the Industrial Court of Kenya at Nairobi by the Minister for Labour on 7th May 2001 under Section 8 of the Trade Disputes Act, Cap. 234, concerning the dismissal/termination of Mr. Peter S. Ndale and George Amugune, employees of Crown-Berger Kenya Ltd. The reference, together with statutory certificates from the Labour Commissioner and the Minister under Section 14(9)(e) and (f), was received on 10th May 2001. At a mention on 15th June 2001, the parties' advocates, Messrs. Talib Ouko (Union) and L.W. Kariuki (Company), were directed to file written memoranda, with the dispute fixed for hearing on 9th October 2001. The Union filed its memorandum on 31st August 2001, but the Company failed twice to file its reply despite an extension to 9th November 2001. The hearing was rescheduled by mutual agreement to 22nd January 2002. On the eve of the hearing, the parties filed a memorandum of settlement under a letter dated 19th January 2002 from the Union's National General Secretary, Mr. Were D. Ogutu, seeking an award by consent. The settlement quantified for Peter Ndale seven days' notice pay, leave for 50 months and service gratuity totalling Kshs. 15,847.20, and for George Amugune notice pay, leave for 58 months and service gratuity totalling Kshs. 18,350.925. Chemmuttut J found the terms fair and reasonable and entered an award accordingly on 22nd January 2002. No costs order was recorded.

Key legal issues

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01

Whether the consent settlement on the dismissal/termination of Mr. Peter S. Ndale and George Amugune should be adopted as an award

Holding

The Court found the settlement terms fair and reasonable and entered an award by consent in those terms, quantifying notice pay, leave due and service gratuity for each grievant.

Reasoning

The dispute was referred by the Minister for Labour under Section 8 of the Trade Disputes Act. Despite directions, the Company failed to file its reply memorandum. On the hearing date the parties instead filed a memorandum of settlement signed by the Union's National General Secretary, setting out lump-sum payments for each grievant. The Court, exercising its statutory function, examined the figures for notice, accrued leave and service gratuity and concluded the terms were fair and reasonable, adopting them as an award by consent.

p. 2

Legal principles established

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  • Where parties to a trade dispute referred to the Industrial Court file a memorandum of settlement, the Court may enter award by consent if satisfied the terms are fair and reasonable.

Court orders

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  1. 1.Award by consent entered in terms of the memorandum of settlement dated 19th January 2002
  2. 2.Respondent to pay Peter Ndale Kshs. 15,847.20 (7 days notice Kshs. 795.20; leave due Kshs. 9,940.00; service gratuity Kshs. 5,112.00)
  3. 3.Respondent to pay George Amugune Kshs. 18,350.925 (7 days notice Kshs. 836.35; leave due Kshs. 12,134.325; service gratuity Kshs. 5,379.75)

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 (reference by the Minister for Labour), with statutory certificates under Section 14(9)(e) and (f)

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 CROWN-BERGER KENYA LTD [2002] KEELRC 33 (KLR)", Case Analysis (2002). Cause No. 52 of 2001. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2002/33/eng@2002-01-22

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