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ELRCAllowedCause No. 257 of 2014· [2015] KEELRC 1433 (KLR)

Paul Odera Okech & 2 others v Steel Makers Limited [2015] KEELRC 1433 (KLR)

Industrial Court of Kenya
13 February 2015
JRJames Rika
261 words in judgment
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The bottom line

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The Employment & Labour Relations Court approved a negotiated payout of Kshs.190,516 to three terminated Steel Makers workers, payable within 30 days.

What this practically means

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Executive summary

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The Claimants, Paul Odera Okech, Ali Suleiman Mwakulonda and Hassan Mdudu, sued Steel Makers Limited at the Industrial Court at Mombasa in Cause No. 257 of 2014 over unfair and unlawful termination. The Statement of Claim was filed on 19th June 2014 and the Respondent's Statement of Response on 6th October 2014. Before any contested hearing, the advocates for both parties informed the Court on 13th February 2015 that they had reached a settlement. The agreed terms gave judgment for the Claimants, with each claimant receiving a balance of notice pay, underpaid gratuity and salary arrears: Okech Kshs.49,866; Mwakulonda Kshs.50,415.50; and Mdudu Kshs.65,336.50. The parties also agreed costs of Kshs.25,000 to the Claimants, making a total decretal sum of Kshs.190,516 payable within 30 days. Rika J expressed satisfaction that the proposed terms were fair, adequate, regular and made in accordance with the law, and ordered that an award be entered on those terms. The matter was thus concluded by consent rather than by adjudication on the merits; no findings were made on the fairness of the terminations themselves, and no authorities or statutes were cited. The award was dated and delivered at Mombasa on 13th February 2015.

Key legal issues

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01

Adoption of out-of-court settlement terms as an award

Holding

The Court adopted the parties' negotiated settlement and entered judgment on its terms, being satisfied the terms were fair, adequate, regular and lawful.

Reasoning

The dispute over unfair and unlawful termination was resolved through negotiation between the parties' advocates, who informed the Court on 13th February 2015 that they had reached settlement. The Court reviewed the proposed terms, which provided differential compensation for each claimant covering notice pay, underpaid gratuity and salary arrears, plus agreed costs and a 30-day payment period, and found them compliant with the law before entering the award.

p. 2

Legal principles established

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  • A court may adopt as an award settlement terms it is satisfied are fair, adequate, regular and lawful

Court orders

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  1. 1.Judgment for the Claimants against the Respondent on the agreed settlement terms
  2. 2.Paul Odera Oketch to be paid balance of notice of Ksh.9,200, underpaid gratuity of Kshs.16,334 and salary arrears of Kshs.24,332 – total Kshs.49,866
  3. 3.Ali Suleiman Mwakulonda to be paid balance of notice Kshs.9,749, underpaid gratuity Kshs.16,334 and salary arrears Kshs.24,332 – total Kshs.50,415.50
  4. 4.Hassan Mdudu to be paid balance of notice pay at Kshs.12,880.50, underpaid gratuity Kshs.19,990 and salary arrears Kshs.33,077 – total Kshs.65,336.50
  5. 5.Costs of Kshs.25,000 to the Claimants
  6. 6.Total decretal sum of Kshs.190,516 payable within 30 days
  7. 7.Award entered on the terms above
Jurisdiction invoked
Jurisdiction of the Industrial Court over disputes of unfair and unlawful termination (employment and labour relations matter, Cause No. 257 of 2014)

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, "Paul Odera Okech & 2 others v Steel Makers Limited [2015] KEELRC 1433 (KLR)", Case Analysis (2015). Cause No. 257 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2015/1433/eng@2015-02-13

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