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ELRCOtherCause No. 366 of 2015· [2015] KEELRC 400 (KLR)

Mohamed Ali Gaal v Anwarali & Brothers Ltd [2015] KEELRC 400 (KLR)

Employment & Labour Relations Court
19 October 2015
JRJames Rika
207 words in judgment
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The bottom line

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A Mombasa court converted a Kshs. 156,040 out-of-court settlement into a binding judgment, so the employer must pay or face execution.

What this practically means

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Executive summary

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This was an unfair and unlawful termination claim filed by Mohamed Ali Gaal against Anwarali & Brothers Ltd in the Employment & Labour Relations Court at Mombasa (Cause No. 366 of 2015). The Claimant filed his Statement of Claim on 28th May 2015 and the Respondent its Statement of Response on 29th June 2015. Before the matter proceeded to a full hearing, the parties on 19th October 2015 informed the Court that they had settled the dispute. The settlement, presented for adoption under Rule 27(1)(a) of the Industrial Court (Procedure) Rules 2010, provided for a consent judgment in favour of the Claimant comprising compensation for unfair termination computed at 11,395 x 5, stated as Kshs. 56,040.00, together with costs of Kshs. 100,000.00, totalling Kshs. 156,040.00, payable within thirty (30) days, in default of which execution would issue. Rika J was satisfied that the proposed terms were fair, adequate, regular and made in accordance with the Law, and ordered that award be entered in terms of the parties' proposal. The dispute was thus resolved by consent without any contested findings on the merits of the termination. The Claimant succeeded in obtaining compensation and costs, but solely on the basis of the negotiated settlement rather than adjudicated liability. Note: the stated compensation figure does not correspond arithmetically to 11,395 x 5, though the consented total of Kshs. 156,040.00 was adopted as ordered.

Key legal issues

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01

Whether to adopt the parties' settlement as a consent judgment

Holding

The Court adopted the settlement and entered award in the agreed terms of Kshs. 156,040.00.

Reasoning

The parties recorded a settlement on 19th October 2015 providing compensation for unfair termination calculated at 11,395 x 5, i.e. Kshs. 56,040.00, plus costs of Kshs. 100,000.00, payable within 30 days. The Court, exercising its power under Rule 27(1)(a) of the Industrial Court (Procedure) Rules 2010, reviewed the proposal and was satisfied it was fair, adequate, regular and lawful, and therefore entered judgment by consent.

p. 2

Legal principles established

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  • A court may enter consent judgment where the proposed settlement terms are fair, adequate, regular and made in accordance with the Law.

Court orders

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  1. 1.Consent award entered in terms of the parties' proposal: compensation for unfair termination of Kshs. 56,040.00 and costs of Kshs. 100,000.00, total Kshs. 156,040.00
  2. 2.Payment to be effected within thirty (30) days, in default execution to issue

Authorities

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Legislation

  • Industrial Court (Procedure) Rules 2010Rule 27(1)(a)
Jurisdiction invoked
Industrial Court (Procedure) Rules 2010, Rule 27(1)(a) - consent judgment on settlement terms

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, "Mohamed Ali Gaal v Anwarali & Brothers Ltd [2015] KEELRC 400 (KLR)", Case Analysis (2015). Cause No. 366 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/400/eng@2015-10-19

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