Kenya Shoe & Leather Workers Union v East Track Management Consultants Ltd [2013] KEELRC 96 (KLR)
The bottom line
#Kenya's Industrial Court awarded a union wage increases, house allowance, notice pay and severance, ruling that labour-supply workers are not casuals.
What this practically means
#Executive summary
#Key legal issues
#Whether a basic minimum wage should be set for each category of the Respondent's employees
The court directed the application of the current basic minimum wage to all categories plus 5%
The Respondent supplied labour to Bata Shoe Company Limited. The Claimant argued the grievants did equal work with Bata employees for less pay and that the cost of living had risen. The Respondent argued the grades proposed were non-existent and the demands exceeded its ability to pay. The court applied the current basic minimum wage to all categories with a 5% uplift.
Whether the employees are entitled to house allowance
Awarded 10% of the basic minimum wage as house allowance across the board
The Claimant submitted that housing allowance is mandatory under section 31 of the Employment Act 2007 and that most employees live in slums. The court, having applied the current basic minimum wage plus 5%, awarded 10% of the basic minimum wage as house allowance across the board.
Whether the employees should be treated as casuals for purposes of termination benefits
The employees should not be treated as casuals; one month notice or pay in lieu and 15 days salary severance per completed year of service awarded across the board
Considering all circumstances and its finding that the employees are not casuals, the court awarded one month notice or payment in lieu, being the statutory minimum under the Employment Act, and severance pay of 15 days salary for each completed year of service, across the board.
Leave travelling allowance
Leave travelling allowance is now universal and applicable in almost all sectors
The Claimant sought Kshs.3,000 leave travelling allowance. Although no evidence was presented on the relative location of employees vis-a-vis the workplace, the court observed that leave travelling allowance has become universal across sectors, supporting an award to the employees.
Effective date and duration of the CBA
The court took judicial notice that CBAs in Kenya last two years and directed the CBA cover January 2013 to December 2014
The issue of effective date was not in the Certificate of unresolved dispute dated 18th November 2011 nor in the letter acknowledging the dispute dated 27th November 2011. The court nonetheless took judicial notice that Kenyan CBAs last two years and fixed the duration accordingly.
Legal principles established
#- Collective bargaining agreements in Kenya ordinarily last for two years
- Housing allowance is a mandatory statutory requirement under the Employment Act
- Employees of a labour supplier should not be treated as casuals and are entitled to statutory minimum notice and severance pay
Court orders
#- 1.Respondent to apply the current basic minimum wage to all categories of employees plus 5%
- 2.Award of 10% of the basic minimum wage as house allowance across the board
- 3.Award of one month notice or payment in lieu thereof across the board
- 4.Severance pay of 15 days salary for each completed year of service across the board
- 5.No award of night shift allowance; Respondent to consult the Claimant if night shifts are required
- 6.CBA to cover the period January, 2013 to December, 2014
- Jurisdiction invoked
- Reference of an unresolved collective bargaining dispute to the Industrial Court following conciliation (Labour Relations Act process); Certificate of unresolved dispute dated 18th November, 2011
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Shoe & Leather Workers Union v East Track Management Consultants Ltd [2013] KEELRC 96 (KLR)", Case Analysis (2013). Cause No. 1978 of 2011. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/96/eng@2013-10-18
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.