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ELRCAllowedCause No 2188 of 2014· [2018] KEELRC 1108 (KLR)

Stephen Mureith Ndungu v Kenya Forestry Research Institute & another [2018] KEELRC 1108 (KLR)

Employment and Labour Relations Court
28 September 2018
2,297 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 Court ruled KEFRI unlawfully discriminated against an employee by skipping his automatic promotion under its own scheme of service, awarding salary arrears of over Kshs.1.1 million.

What this practically means

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Executive summary

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The claimant, employed by KEFRI since 1988 and risen to Assistant Research Scientist Job Grade RF8, sued after the respondent implemented new schemes of service on 1.6.2011 under which the RF8 post was scrapped and the lowest scientific post became Research Scientist II Job Grade RF9. He sought declarations of discrimination, payment of salary arrears, placement in RF9 and an immediate pay rise. The respondent admitted the facts but contended the claimant was not advanced because he lacked a Masters degree, and that RF8's omission from the new scheme was an error later corrected by a Board addendum of 8.12.2014 (yet unapproved by the parent Ministry). The court held that the schemes of service constituted binding contractual terms requiring automatic conversion of all serving officers irrespective of qualifications, relying on clauses 1.5 and 1.9. The claimant's enrolment and attainment of a Masters degree (February 2018) satisfied any duty to train. The respondent's unilateral failure to convert him was unlawful and discriminatory. Judgment was entered for the claimant: declaration of discrimination, placement in Research Scientist II Job Grade KEFRI 9 retrospectively from 1.6.2011, salary arrears of Kshs.1,175,704.00 as at 4.6.2018 plus further accruing arrears less statutory deductions, with costs and interest at court rates. The claim was allowed in full; the respondent's defence was rejected.

Key legal issues

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01

Whether the new schemes of service formed part of the claimant's contract of service

Holding

Yes - the schemes of service implemented on 1.6.2011 became binding contractual terms for all serving employees

Reasoning

The court found the schemes were a culmination of consultation between the respondent and her employees and received the parent Ministry's approval. They were therefore not mere guidelines but formed part of each employee's contract from the effective date, binding both employer and employees unless an employee voluntarily opted out. Clauses 1.2 and 1.9 required automatic conversion of all serving officers.

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02

Whether failure to advance the claimant to Research Scientist II RF9 was discriminatory and unlawful

Holding

Yes - the conversion was automatic despite the claimant lacking a Masters degree; the respondent's unilateral failure was unlawful and discriminatory

Reasoning

Clause 1.5 provided that serving officers convert even without requisite qualifications, with the only obligation being to acquire qualifications for future advancement. The claimant proved he enrolled for a Masters in 2013 and attained it in February 2018. The Board's later addendum reinstating the RF8 entry grade had not received Ministry approval, and the court held the respondent had a duty, not an option, to implement the scheme to all serving officers.

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Legal principles established

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  • A scheme of service implemented by an employer constitutes binding contractual terms which the employer must apply to all serving officers on the effective date.
  • Serving officers convert automatically to a new scheme of service whether or not they possess the minimum qualifications for the grade, per clauses 1.5 and 1.9.
  • Unilateral suspension of the applicable scheme of service for one employee is unlawful and discriminatory.

Court orders

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  1. 1.Declaration that the failure by the respondent to convert and advance the claimant to the post of Research Scientist II effective 1.6.2011 was discriminatory and infringed the claimant's labour rights
  2. 2.The respondent is directed to place the claimant in the post of Research Scientist II Job Grade KEFRI 9 effective 1.6.2011
  3. 3.The claimant is awarded his salary arrears for the position of Research Scientist II Job Group 9 retrospectively from 1.6.2011 less what he has been paid as Assistant Research Scientist Job Grade KEFRI 8
  4. 4.The respondent is directed to pay Kshs.1,175,704.00 salary arrears plus any further arrears accruing from that date less statutory deductions
  5. 5.The claimant to have costs of the suit
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over labour disputes (employment claim concerning schemes of service, discrimination and labour rights)

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, "Stephen Mureith Ndungu v Kenya Forestry Research Institute & another [2018] KEELRC 1108 (KLR)", Case Analysis (2018). Cause No 2188 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/1108/eng@2018-09-28

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