Kenya Union of Commercial Food & Allied Workers v Ruchu Garage Farmers Co-op Society Limited [2014] KEELRC 1502 (KLR)
The bottom line
#A Kenyan court confirmed that a collective agreement registered late is still valid and corrected severance pay to one month's salary per year worked.
What this practically means
#Executive summary
#Key legal issues
#Validity of a Collective Bargaining Agreement registered beyond the 14-day statutory period
Late registration does not invalidate the CBA; the court's registration, which follows defined parameters and is discretionary, validates it.
Section 60(1) of the Labour Relations Act 2007 requires a collective agreement to be submitted for registration within fourteen days of conclusion. However, Section 60(7)(a), empowering the court to register a collective agreement within fourteen days of receiving it, is not mandatory in its wording. The court does not blindly register CBAs but applies parameters and may refuse registration. Registration therefore cures the late submission.
Whether the computation of severance pay at 15 days per year worked instead of per the CBA constituted an error apparent on the face of the record
Yes. The claimant had asked for computation per the CBA, which tiered severance by length of service; for 11 years' service, at least 1 month per year worked was due under Clause 5(vi).
The court had computed severance for the claimant's 11 years of service (January 1999 to February 2009) at 15 days' salary per year worked, whereas the claimant had requested computation under the CBA, whose Article 5 categorised calculations by length of service. Under Clause 5(viii), 11 years' service would trigger referral to a joint Committee; there was no proof of that, so Clause 5(vi) applied, giving at least 12 months. The order was varied to 1 month per year worked, yielding Ksh 64,240.
Legal principles established
#- Late submission of a Collective Agreement for registration beyond the 14 days prescribed by Section 60(1) of the Labour Relations Act does not invalidate it once registered, because registration is not mandatory.
- The Industrial Court has power to review its own judgments, awards, orders or decrees in accordance with the Rules, including where there is an error apparent on the face of the record.
Court orders
#- 1.The court reviewed its judgment of 18.12.2012, in particular Order No. 3
- 2.Severance pay computed at 1 month's salary for each year worked instead of 15 days per year worked, resulting in Ksh 32,120 x 2 = Ksh 64,240
- 3.No order as to costs
- Jurisdiction invoked
- Sections 3, 12 and 16 of the Industrial Court Act 2011, Rule 32 of the Industrial Court (Procedure) Rules 2010 and Section 87 of the Employment Act 2007
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Union of Commercial Food & Allied Workers v Ruchu Garage Farmers Co-op Society Limited [2014] KEELRC 1502 (KLR)", Case Analysis (2014). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1502/eng@2014-06-30
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.