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ELRCAllowedNot stated in judgment (Memorandum of claim filed 12th October, 2009)· [2014] KEELRC 721 (KLR)

Kenya Plantation & Agriculture Workers Union v Coffee Research Foundation [2014] KEELRC 721 (KLR)

Industrial Court of Kenya (now Employment and Labour Relations Court)
28 January 2014
2,105 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Ten long-serving security guards won back pay and redundancy benefits because Kenyan law converts casual workers into full employees after two months.

What this practically means

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Executive summary

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The Claimant union sued on behalf of ten grievants employed as security guards, alleging that although a valid Recognition Agreement and CBA (with 13% salary increments for each of two years) existed between the parties, the Respondent implemented the CBA in a discriminatory manner by placing the grievants on less favourable three-month contracts as 'seasonal' or casual employees, refusing to implement check-off for their union dues, and terminating their employment on 30th May, 2009 without CBA or redundancy benefits. The Respondent admitted the CBAs but asserted two unions and two CBAs applied, that security staff fell under the commercial union's CBA, and that the grievants were casuals outside both agreements, employed on daily rates and later three-month contracts, hence not entitled to increments or severance. The court found the Claimant's evidence of continuous service exceeding five years unrebutted, and held that under Sections 37(1) and 37(3) of the Employment Act such long-serving security guards could not be regarded as casuals and acquired full statutory terms. The short-term contracts were imposed in response to the grievants' demands for CBA benefits and their termination was a device to deny those benefits. This violated Sections 5(3) and 5(4) of the Employment Act, ILO Convention No. 100 and the CBA itself. The court directed the Respondent to implement the CBA for the grievants, tabulate and pay arrears of wages and benefits, pay redundancy benefits, file computations within thirty days for court approval, and pay the Claimant's costs.

Key legal issues

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01

Status of the grievants: casual or unionisable employees entitled to CBA benefits

Holding

The grievants, having served continuously for periods exceeding five years as security guards, were not casual employees but were entitled to CBA benefits applicable to all unionisable employees.

Reasoning

The Claimant's unchallenged evidence established continuous service exceeding five years. Under Section 37(1)(a) and (b) and 37(3) of the Employment Act, security guards working 6 a.m. to 6 a.m. shifts and continuously for two months or more cannot be treated as casuals and acquire full terms of service. The short-term contracts were a device responding to the grievants' CBA demands.

p. 5
02

Discrimination in implementation of the CBA and remuneration

Holding

The Respondent's failure to implement the CBA with respect to the grievants violated Sections 5(3) and 5(4) of the Employment Act, ILO Convention No. 100 and the CBA itself.

Reasoning

The Respondent admitted not paying the grievants in terms of the CBA or the redundancy clause, alleging they were casuals outside both CBAs. Having found the grievants were entitled to be treated as unionisable employees, the court held that placing them on less favourable three-month contracts perpetuated discrimination and amounted to unfair labour practice, contrary to the Employment Act and ILO Convention No. 100.

p. 5
03

Union membership and check-off

Holding

The grievants were members of the Claimant union and the Respondent wrongfully refused to implement check-off forms to remit union dues.

Reasoning

The Respondent denied receiving check-off forms and contended the grievants were casuals and hence not unionisable. The court found credible the Claimant's evidence that the grievants were union members, that the Respondent refused to recognise their status and refused to remit dues, using newly imposed short-term contracts to terminate their services without CBA benefits.

p. 4

Legal principles established

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  • An employee initially engaged as a casual who works continuously becomes entitled to full terms and conditions of service as if not a casual employee
  • Employers must pay employees equal remuneration for work of equal value
  • An employer shall not discriminate directly or indirectly against an employee in respect of terms and conditions of employment or termination

Court orders

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  1. 1.Respondent to implement the CBA for the period 1st July, 2007 to 31st June, 2009 with respect to the 10 grievants
  2. 2.Respondent to tabulate and pay in arrears underpayment of wages and any other benefits not implemented with respect to the 10 grievants
  3. 3.Respondent to pay redundancy benefits to the 10 grievants in terms of the relevant clause of the CBA
  4. 4.Respondent to file and serve the Claimant with the computation of (a), (b) and (c) within thirty (30) days from the date of judgment for consideration and approval by the court
  5. 5.Respondent to pay costs of the suit to the Claimant

Authorities

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Legislation

  • Labour Relations ActSection 65(1)
  • Employment ActSection 5(3)
  • Employment ActSection 5(4)
  • Employment ActSection 37(1)(a) and (b)
  • Employment ActSection 37(3)
  • ILO Convention No. 100
  • Regulation of Wages Order
Jurisdiction invoked
Dispute reported to the Minister of Labour under Section 65(1) of the Labour Relations Act, 2007 and referred to the Industrial Court; jurisdiction under the Employment Act, 2007 and Labour Relations Act, 2007

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Kenya Plantation & Agriculture Workers Union v Coffee Research Foundation [2014] KEELRC 721 (KLR)", Case Analysis (2014). Not stated in judgment (Memorandum of claim filed 12th October, 2009). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/721/eng@2014-01-28

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