Kenya Union of Commercial Food and Allied Workers Union v Kapa Oil Refineries Limited [2018] KEELRC 674 (KLR)
The bottom line
#A Kenyan court replaced a 2004 reinstatement order with a rich compensation package because reinstating workers 15 years later was no longer practical.
What this practically means
#Executive summary
#Key legal issues
#Res judicata
The plea of res judicata fails; the earlier judicial review application (JR No. 18 of 2005, dismissed by Dulu J on 6th July 2012) does not bar the present review application
The court accepted that the respondent had earlier challenged the award through judicial review proceedings which were dismissed. However, it held that judicial review and review of a decree are distinct processes: a review is not another suit but an application to amend or set aside a decision. Accordingly, the dismissal of the judicial review application could not found a plea of res judicata against the review application.
Whether the court can review the decree of 3rd July 2017
Yes - the application was filed within 7 days of the decree, without unreasonable delay, and the impracticality of reinstating 106 grievants after 15 years constitutes 'sufficient reason' under Rule 33 of the ELRC Rules
The court applied Rule 33(1) of the ELRC Rules and the Origo v Mungala principles. The application was filed 7 days after the decree, so there was no delay. The respondent's reason - that reinstatement was impractical and would require training the 106 grievants afresh - was held to be sufficiently analogous to the enumerated grounds to constitute 'any other sufficient reason' warranting review.
Retrospectivity of the Employment Act three-year reinstatement limit
Section 12(3)(vii) of the Employment Act does not apply retrospectively; the award predates the Employment Act and is governed by the Trade Disputes Act, which imposed no time limit on reinstatement orders
The award was made on 22nd December 2004 under the repealed Trade Disputes Act, before the Employment Act No. 11 of 2007 came into force. Relying on Kenya Ports Authority v Odongo and the Supreme Court's non-retroactivity principle, the court held there is no express legislative intent for retrospective application, and paragraph 2(4) of the Fifth Schedule of the Labour Relations Act confirms the repealed Act governs pre-commencement disputes.
Practicability of reinstatement
Reinstatement after 15 years is impractical; the grievants are entitled to the alternative award of compensation and terminal dues in Order 4 of the award
Balancing the equities, the court noted the organisation had changed, labour had been outsourced to third parties, and retraining would be required. However, because the delay was occasioned by lengthy litigation, it would prejudice the grievants to deprive them of the award. The court therefore exercised its discretion to review the decree by substituting reinstatement with the compensation package already provided in the alternative Order 4 of the award.
Legal principles established
#- Section 12(3)(vii) of the Employment Act cannot be applied retrospectively to bar reinstatement ordered under the repealed Trade Disputes Act, which set no time limit for reinstatement
- An application for review of a decree or order is not barred by res judicata even where a judicial review application on the same award was previously dismissed
- Impracticability of reinstatement is assessed by balancing the interests of the parties, including the prospective effects of reinstatement on the employer, other employees and third parties
Court orders
#- 1.The decree of 3rd July 2017 is reviewed such that the reinstatement order is substituted with compensation
- 2.The respondent to pay to the grievants compensation amounting to 6 months of their full wages inclusive of house allowance and other allowances
- 3.The respondent to pay each grievant all outstanding wages due from the date of termination to date of judgment, leave pay and allowances provided for in the CBA
- 4.The respondent to pay each grievant pay in lieu of notice in accordance with clause 11 of the CBA
- 5.The respondent to pay each grievant gratuity in accordance with clause 26 of the CBA
- 6.The respondent to pay each grievant twelve (12) months wages by way of compensation based on gross monthly pay
- 7.All payments to attract interest from the date of the award
- 8.All sums already paid by the respondent to be taken into account in the implementation of the award
- Jurisdiction invoked
- Rule 33(1) and (6) of the Employment and Labour Relations Court Rules (review of decree)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Union of Commercial Food and Allied Workers Union v Kapa Oil Refineries Limited [2018] KEELRC 674 (KLR)", Case Analysis (2018). Application dated 7th July 2017, amended 24th July 2017, arising from Cause No. 25 of 2004 (case number of the application not stated in the judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/674/eng@2018-11-09
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.