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ELRCDismissedIndustrial Court Cause Number 358 of 2010 (application for review dated 19th July 2012)· [2013] KEELRC 495 (KLR)

SAMUEL G. MOMANYI V SDV TRANSAMI KENYA LIMITED [2013] KEELRC 495 (KLR)

Industrial Court of Kenya
27 February 2013
3,873 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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The Industrial Court refused to revive an unfair dismissal claim struck out before section 45(3) was declared unconstitutional — that invalidity only applies to claims filed after 18 May 2012.

What this practically means

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Executive summary

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The Claimant, Samuel G. Momanyi, worked for SDV Transami Kenya Limited for 11 months and 27 days before his termination on 27th February 2010. He claimed notice pay, service or severance pay, relocation allowance and Kshs.6,360,000 compensation for unfair termination. On a preliminary challenge by the Respondent, the Industrial Court (James Rika, Judge) ruled on 10th December 2010 that the unfair termination claim was improperly before it, section 45(3) of the Employment Act 2007 requiring at least thirteen months of continuous service, and struck out that claim. The Claimant then petitioned the High Court, which on 18th May 2012 declared section 45(3) inconsistent with Articles 28, 41(1), 47, 48 and 50(1) of the Constitution and invalid. The Claimant applied for review of the Industrial Court Ruling, arguing section 45(3) was void ab initio from 2nd June 2008. The Respondent contended the Court was functus officio and that invalidity operates only prospectively. Framing the issues around the effective date of invalidity and its consequences for prior acts, the Court held that in the absence of any Kenyan constitutional rule on retrospectivity, and guided by the Supreme Court's protection of vested rights in Samuel Kamau Macharia, the declaration of invalidity applies only to claims filed after 18th May 2012. The Court also observed, by comparative reference to English and South African law, that qualifying periods are objectively justifiable limitations. The review application was rejected, the parties were directed to agree a hearing date for the main claim, and costs were awarded in the cause.

Key legal issues

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01

Effective date of a declaration of invalidity where the Constitution is silent on retrospectivity

Holding

The declaration of invalidity of section 45(3) applies only to claims filed after 18th May 2012; it does not operate retrospectively

Reasoning

The Court noted Kenya's Constitution contains no specific rule on retroactivity or suspension of declarations of invalidity, unlike South Africa's section 172(1). Drawing on the Supreme Court's decision in Samuel Kamau Macharia, it held that judicial caution, legal certainty and protection of vested rights preclude retrospective invalidation. Reopening past dismissals would trigger a turbulence in private legal relations. Parties should seek clarification on effective dates from the court that made the declaration.

p. 7
02

Whether the Industrial Court should review its Ruling of 10th December 2010 severing the unfair termination claim

Holding

The review application was rejected because the Ruling was validly made under section 45(3) when it had the force of law

Reasoning

The Respondent had a vested right to raise the section 45(3) defence before the declaration of invalidity, and the Court's Ruling predates the High Court judgment. Allowing review would invite all similarly unsuccessful claimants to troop back to court. The Court acted in accordance with the law as it stood on 10th December 2010, so no ground for review under Rule 32 was made out.

p. 7
03

Objective justifiability of qualifying periods for unfair termination claims

Holding

Qualifying periods are legitimate limitations justifiable in an open and democratic society, best left to social partners

Reasoning

Comparing English and South African law, the Court observed that qualifying periods exist in different labour markets, serve objectives such as strengthening the employment relationship, easing the burden on the industrial justice system and improving business confidence, and are justifiable limitations. It noted with concern that Kenya's Employment Act lumps discrimination and automatically unfair dismissal claims together under the qualifying period.

p. 5

Legal principles established

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  • A declaration of constitutional invalidity of a statutory provision operates prospectively only, and does not disturb rights vested, or judicial decisions made, before the date of the declaration
  • Until expressly declared invalid by a court, a statute has the force of law notwithstanding constitutional repugnance

Court orders

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  1. 1.The application for review is rejected
  2. 2.Parties to agree on a date for the hearing of the main claim
  3. 3.Costs in the cause

Authorities

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Legislation

  • Employment Actsection 45(3)
  • Employment Actsections 35, 42, 49
  • Constitution of Kenya 2010Articles 22, 23, 23(2), 28, 35, 41(1), 47, 48, 50(1), 165; Sixth Schedule
  • Industrial Court Actsection 16
  • Industrial Court (Procedure) RulesRule 32
  • Interim Constitution of South Africasection 98
  • Constitution of South Africasection 172(1)
  • Employment Rights Act 1996 (England)section 108
  • Industrial Relations Act 1971 (England)
  • Unfair Dismissal and Statement of Reasons for Dismissal (Variation of Qualifying Period) Order 2012 (England)
  • Unfair Dismissal (Variation of the Qualifying Period) Order 1995 (England)
  • Central Bank of Kenya (Amendment) ActNo. 4 of 2001
  • EC Equal Treatment Directive76/207/EEC

Cases cited (5)

  • Kenya Bankers Association & Others v. Minister for Finance & Another
    High Court at Nairobi, Miscellaneous Civil Application No. 908 of 2001; (2002)
  • Carr v. State
    (1890) 127 Ind. 204, 26 N.E. 778; 11 L.R.A. 370
  • R v Secretary of State for Employment ex parte Seymour-Smith and Perez
    (1996) 1 All ER (EC) 1
  • Seymour-Smith v. SS Employment
    UKHL; (2000) 1 All ER 857
  • Samuel Kamau Macharia and Another v. Kenya Commercial Bank Limited and 2 Others
    Application No. 2 of 2011, (e.KLR 2012)
Jurisdiction invoked
Section 16 of the Industrial Court Act No. 20 of 2011 and Rule 32 of the Industrial Court (Procedure) Rules, 2010 (review of the Court's own decisions)

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, "SAMUEL G. MOMANYI V SDV TRANSAMI KENYA LIMITED [2013] KEELRC 495 (KLR)", Case Analysis (2013). Industrial Court Cause Number 358 of 2010 (application for review dated 19th July 2012). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/495/eng@2013-02-27

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