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ELRCDismissedCause No 397 of 2014· [2016] KEELRC 494 (KLR)

Rose Bilha Watiri v Kimani Operations Limited [2016] KEELRC 494 (KLR)

Employment and Labour Relations Court
14 October 2016
764 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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If you accept a settlement through Kenya's Ministry of Labour conciliation and sign a discharge, courts will rarely let you sue again over the same dispute.

What this practically means

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Executive summary

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The Claimant, Rose Bilha Watiri, sued her former employer, Kimani Operations Limited, seeking severance pay, three months' salary in lieu of notice, leave dues, overtime and twelve months' compensation following termination of her employment on 30th April 2013, alleging there was no valid reason for termination and no due process. The Respondent denied employing her from 1994, asserting she was engaged as a casual labourer from 2011, denied supervisory duties, contended she was implicated in theft of trappers worth Kshs. 1 million, and argued that all her dues had been settled following conciliation at the Ministry of Labour, under an agreement dated 12th August 2013 witnessed by the County Labour Officer and a discharge executed on 23rd September 2013. The Court framed three issues: whether the claim was extinguished by the conciliation agreement, whether the termination was lawful and fair, and whether the remedies sought were available. Applying Article 159(2)(c) of the Constitution and Section 47(1)&(2) of the Employment Act, and following its earlier decision in Elizabeth Wanjiru Njogu v Kangei and Nyakinyua Building Co. Ltd, the Court held that a party who voluntarily submits to ADR and reaps its benefits cannot later question the process, save where there is a manifest miscarriage of justice or contravention of the Constitution or written law. Finding the Claimant had voluntarily conciliated, been compensated, and discharged the Respondent, the Court dismissed the entire claim with no order for costs.

Key legal issues

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01

Whether the conciliation agreement at the Ministry of Labour extinguished the Claimant's claim

Holding

Yes. The Claimant voluntarily submitted to conciliation before a duly appointed Conciliator, was compensated, and executed a discharge on 23rd September 2013; her claim was therefore extinguished.

Reasoning

Section 47(1)&(2) of the Employment Act provides for resolution of employment disputes before a Labour Officer, and Article 159(2)(c) of the Constitution enjoins the Court to promote alternative dispute resolution. The Claimant herself reported the dispute and produced the agreement dated 12th August 2013 witnessed by the County Labour Officer, Nyayo House, and the subsequent discharge. Following the precedent on voluntary submission to ADR, the Court held that absent a manifest miscarriage of justice or constitutional/statutory contravention, the consented conciliation outcome binds the parties.

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02

Whether the termination of the Claimant's employment was lawful and fair

Holding

Not decided on the merits, as the claim was dismissed on the conciliation agreement issue.

Reasoning

Although the Court framed the lawfulness and fairness of the termination as an issue, its finding on the conciliation agreement was dispositive. The Respondent had alleged the Claimant was implicated in theft of trappers worth Kshs. 1 million and could not defend herself upon interrogation, while the Claimant alleged no valid reason and no due process. The Court did not reach these matters, dismissing the claim outright on the ground that the conciliation process had extinguished it.

p. 3
03

Whether the Claimant is entitled to the remedies sought

Holding

No. All remedies were refused because the claim was dismissed.

Reasoning

Having found that the Claimant's claim was extinguished by the conciliation agreement and discharge executed after she was compensated, the Court held she was not entitled to any of the claimed sums: severance pay, salary in lieu of notice, leave days, overtime or 12 months' compensation. Costs were also declined, with no order for costs despite the dismissal.

p. 3

Legal principles established

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  • A party who voluntarily submits to ADR and benefits from it cannot later challenge the process or outcome, save where there is a manifest miscarriage of justice or contravention of the Constitution or written law
  • The Court will not interfere with the consented outcome of conciliation as that would render constitutional and statutory provisions on ADR ineffective

Court orders

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  1. 1.The Claimant's claim is dismissed
  2. 2.No order for costs

Authorities

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Legislation

  • Employment Act, 2007Section 47(1)&(2)
  • Constitution of KenyaArticle 159(2)(c)

Cases cited (2)

  • Jane Maureen Mbuya Okedi v United (EA) Ware House Limited
    [2015] eKLR
  • Elizabeth Wanjiru Njogu v Kangei and Nyakinyua Building Co. Ltd
    Cause No 385 of 2011
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes; Article 159(2)(c) of the Constitution on alternative dispute resolution; Section 47(1)&(2) of the Employment Act, 2007

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, "Rose Bilha Watiri v Kimani Operations Limited [2016] KEELRC 494 (KLR)", Case Analysis (2016). Cause No 397 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/494/eng@2016-10-14

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