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ELRCDismissedNot stated in the judgment· [2016] KEELRC 1672 (KLR)

Anne Wangui Ngugi & 524 Others v Retirement Benefits Authority & another [2016] KEELRC 1672 (KLR)

Employment and Labour Relations Court
10 February 2016
ANAbuodha J N
2,433 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment and Labour Relations Court confirmed it can hear pension disputes raised by retired employees, keeping the appeal alive.

What this practically means

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Executive summary

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The 2nd respondent raised a preliminary objection contending that (a) the Employment and Labour Relations Court lacks jurisdiction over disputes to a retirement benefits or pension scheme and appeals from the Retirement Benefits Appeals Tribunal, and (b) no right of appeal lies to the Court as none is conferred by the Constitution, the Employment and Labour Relations Act or the Retirement Benefits Act. Senior Counsel Mr. Fred Ojiambo for the respondents argued that the Court's jurisdiction is confined to employer-employee disputes, that retirement is a voluntary termination distinct from employment, and that appellate jurisdiction from the Tribunal lies with the High Court by virtue of section 65(1) of the Civil Procedure Act as applied through section 52 of the Retirement Benefits Act. Mr. Koceyo for the appellants countered that retirement benefits arise directly from employment and that the Constitution confers supervisory and appellate competence. The Court held that jurisdiction is everything and that, on a purposive interpretation, retirement benefits are rooted in the employer-employee relationship, extending the Court's jurisdiction to former employees. It further held that section 49(1) of the Retirement Benefits Act equates the Appeals Tribunal to a subordinate first-class court, not the High Court, and that although the Act is silent on appealability, statutory silence cannot oust the fundamental right of access to the Courts. Drawing on principles governing ouster clauses, the Court admitted the appeal for hearing on merit but recommended that future appeals from the Tribunal be filed only with leave of Court first had and obtained. The preliminary objection was disallowed with no order as to costs.

Key legal issues

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01

Whether the ELRC has jurisdiction over retirement benefits disputes

Holding

The Court has jurisdiction; retirement benefits find their rooting in the employer-employee relationship, and the jurisdiction covers prospective and former employees.

Reasoning

The Court held that retirement benefits derive from the relationship of employment. Though the appellants had retired, their benefits arose from their former employment with Kenya Commercial Bank. A purposive reading of the Court's jurisdiction under Article 162(2) and section 12(1) of the ELRC Act encompasses disputes of former employees. The argument that retirement is distinct from employment was rejected as erroneous.

p. 3
02

Whether an appeal lies to the Court from the Retirement Benefits Appeals Tribunal absent an express statutory provision

Holding

The Tribunal has the status of a subordinate first-class court, not the High Court; the Act is silent on appealability, but the absence of an inhibitive provision cannot oust the right of access to the Court.

Reasoning

Section 49(1) of the Retirement Benefits Act equates the Tribunal with a subordinate first-class court, contradicting the respondents' claim of High Court status. The Act is regulatory and silent on appealability. Applying principles on ouster clauses, statutory silence does not deny access to the Court, though the Court will only intervene in clear and obvious cases. The appeal was admitted, with future appeals recommended to be filed only with leave.

p. 5

Legal principles established

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  • Jurisdiction is foundational; a court without jurisdiction must down its tools.
  • Retirement benefits disputes are rooted in the employer-employee relationship, and a purposive interpretation of the Court's jurisdiction extends to former employees.
  • Statutory provisions tending to oust the jurisdiction of the Court should be construed strictly and narrowly.
  • The absence of an express appellate provision does not oust the fundamental right of access to the Courts, though leave should be sought before filing such appeals.

Court orders

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  1. 1.The limb of the preliminary objection on jurisdiction is disallowed
  2. 2.The second limb of the preliminary objection on the right of appeal is disallowed
  3. 3.The preliminary objection is disallowed with no order as to costs
  4. 4.The appeal is admitted for hearing on merit, with a recommendation that future appeals from the Tribunal be filed only with leave of Court first had and obtained
On appeal from
Retirement Benefits Authority Appeals Tribunal
Jurisdiction invoked
Article 162(2) of the Constitution and section 12 of the Employment and Labour Relations Court Act

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, "Anne Wangui Ngugi & 524 Others v Retirement Benefits Authority & another [2016] KEELRC 1672 (KLR)", Case Analysis (2016). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1672/eng@2016-02-10

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