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ELRCOtherCause arising from Memorandum of Claim filed 25 April 2013 (number not stated in judgment)· [2014] KEELRC 1134 (KLR)

Kenya Hotels & Allied Workers Union v Southern Palm Beach Resort [2014] KEELRC 1134 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
11 July 2014
1,372 words in judgment
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The bottom line

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Kenya's Employment Court allowed a union to sue over a 2005 dismissal, ruling the three-year limit in the 2007 Employment Act doesn't apply to older terminations.

What this practically means

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Executive summary

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The Union lodged a Memorandum of Claim on 25 April 2013 alleging wrongful/unfair termination of its shop steward, Zebedeo Ogwankwa Onyansi, on 7 November 2005 on grounds of trade union activities. The Respondent filed a Preliminary Objection under section 90 of the Employment Act, 2007, and in submissions relied on the Limitation of Actions Act, contending the claim was time barred. The Union invoked the transitional provisions of the fifth schedule to the Labour Relations Act and explained that a trade dispute reported in 2006 had been conciliated, with the Conciliator's report issued only on 27 January 2010. The Court held that section 90 of the Employment Act, 2007 is not retrospective and did not apply to a 2005 termination; the operative statutes were the Trade Disputes Act (repealed) and the Limitation of Actions Act. The repealed Trade Disputes Act was sui generis and set no time limit within which parties should move the Minister or the Minister should refer an unresolved dispute to the Industrial Court; since no referral had been made, limitation was technically not triggered, though parties must act reasonably. Interpreting Articles 20(3)(b), 48 and 50 of the Constitution in favour of access to justice and substantive justice, the Court declined to send the Union back to the Minister, observing that this would be a pyrrhic procedural victory and that the dispute would only return to Court. The Preliminary Objection was dismissed with no order as to costs, and the Cause was directed to proceed to hearing on the merits. The Court expressly limited its ruling to the peculiar circumstances, disclaiming any general principle on limitation for pre-2007 trade disputes.

Key legal issues

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01

Applicability of section 90 of the Employment Act, 2007 to a pre-2007 termination

Holding

Section 90 is not retrospective and does not apply to a termination effected before the Employment Act, 2007 came into force

Reasoning

The Grievant was terminated on 7 November 2005, before the Employment Act, 2007 was enacted. Since section 90 has not been given retrospective effect, it cannot ground a limitation defence. The applicable statutes at the time of termination were the Trade Disputes Act (repealed) and the Limitation of Actions Act.

p. 2
02

Limitation under the Trade Disputes Act (repealed) regime

Holding

The Trade Disputes Act was sui generis and provided no time limit for referral of an unresolved dispute to the Industrial Court, so limitation was technically not yet triggered

Reasoning

Under section 8 of the repealed Trade Disputes Act, a party could request the Minister to refer an unresolved dispute to the Industrial Court. Neither party did so, and the Act prescribed no timelines for the Minister's action. Until the Minister took that precipitate step, limitation was technically inapplicable, though parties should act within a reasonable time.

p. 2
03

Whether sending the Union back to the Minister would serve substantive justice

Holding

No - it would be a procedural technicality producing a pyrrhic victory, and the Cause should be heard on the merits

Reasoning

Invoking Articles 20(3)(b), 48 and 50 of the Constitution, the Court held that forcing the Union to seek a Ministerial referral after the repeal of the Trade Disputes Act would defeat access to justice and substantive justice. The dispute would only find its way back to Court, so the Preliminary Objection was dismissed.

p. 2

Legal principles established

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  • Section 90 of the Employment Act, 2007 has not been given retrospective operation and does not apply to terminations occurring before its enactment
  • The Trade Disputes Act (repealed) contained no limitation periods comparable to the Limitation of Actions Act or section 90 of the Employment Act
  • Because the repealed Trade Disputes Act fixed no time limit for moving the Minister or for the Minister to refer a dispute to the Industrial Court, limitation does not technically apply until the Minister takes the required precipitate step, though parties must act within a reasonable time
  • Courts should not give undue weight to procedural technicalities where doing so would defeat substantive justice, having regard to Articles 20(3)(b), 48 and 50 of the Constitution

Court orders

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  1. 1.The Preliminary Objection is dismissed with no order as to costs
  2. 2.The Cause to proceed to hearing on the merits

Authorities

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Legislation

  • Employment Actsection 90; cap 226 (repealed)
  • Limitation of Actions Actgeneral (6-year period referenced)
  • Labour Relations Actfifth schedule, section 2(1)(4); section 73
  • Trade Disputes Act (repealed)section 4(4); section 8
  • Constitution of Kenya, 2010Article 20(3)(b); Article 48; Article 50; Article 162

Cases cited (1)

  • Kenya Hotels & Allied Workers Union v Southern Palm Beach Resort, Nairobi Cause No. 120 of 2005
Jurisdiction invoked
Article 162 of the Constitution (Industrial Court as a superior court of record) and the 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 Hotels & Allied Workers Union v Southern Palm Beach Resort [2014] KEELRC 1134 (KLR)", Case Analysis (2014). Cause arising from Memorandum of Claim filed 25 April 2013 (number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1134/eng@2014-07-11

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