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ELRCDismissedNot stated in judgment· [2017] KEELRC 1659 (KLR)

Transport Workers Union (K) v Scarce Commodities Ltd [2017] KEELRC 1659 (KLR)

Employment and Labour Relations Court
17 March 2017
RSRadido Stephen
365 words in judgment
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The bottom line

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A Kenyan court dismissed union-backed unfair termination claims filed nearly six years late, confirming the strict three-year deadline in employment cases.

What this practically means

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Executive summary

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The Transport Workers Union (K) sued Scarce Commodities Ltd on 4 July 2016 on behalf of five grievants, alleging unfair termination and failure to pay terminal benefits arising from terminations effected between June and October 2010. The Union pleaded that the disputes had gone through conciliation and that a Certificate of Disagreement was issued on 26 September 2011. The Respondent raised a preliminary objection on 18 January 2017 contending that the causes of action were time barred under section 90 of the Employment Act, 2007. The Court held that the disputes arose out of contracts of service and accrued upon the terminations in September and October 2010, so proceedings should have been filed by September/October 2013; the Union's suit of 4 July 2016 was therefore statute barred. The Court further held that even if time ran from the Certificate of Disagreement of 26 September 2011, the claim filed in July 2016 was still out of time, as it ought to have been lodged by 25 September 2014. Upholding the preliminary objection, the Court dismissed the Memorandum of Claim with no order as to costs. Judgment was delivered in Nakuru on 17 March 2017 by Radido Stephen, Judge.

Key legal issues

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01

Limitation of employment claims under section 90 of the Employment Act, 2007

Holding

The claims filed on 4 July 2016 concerning terminations effected in September/October 2010 were time barred, the three-year limitation period having expired in September/October 2013

Reasoning

The causes of action arose out of contracts of service and accrued upon termination in September and October 2010 as pleaded in the Memorandum of Claim. Under section 90 of the Employment Act, 2007, proceedings must be instituted within three years of accrual. The Union filed on 4 July 2016, well outside that period. Even computing time from the Conciliator's Certificate of Disagreement of 26 September 2011, the claim would still have been late, having been filed after 25 September 2014.

p. 1

Legal principles established

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  • Employment claims founded on contract of service must be instituted within three years of the cause of action accruing under section 90 of the Employment Act, 2007
  • Time does not begin to run from the date of the Certificate of Disagreement where the cause of action accrued earlier upon termination

Court orders

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  1. 1.Upheld the preliminary objection on time bar
  2. 2.Dismissed the Memorandum of Claim with no order as to costs

Authorities

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Legislation

  • Employment Act, 2007section 90
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes; limitation under section 90 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, "Transport Workers Union (K) v Scarce Commodities Ltd [2017] KEELRC 1659 (KLR)", Case Analysis (2017). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2017/1659/eng@2017-03-17

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