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ELRCOtherNot stated in the judgment (ELRC Mombasa, transferred from Chief Magistrate's Court Mombasa)· [2019] KEELRC 2170 (KLR)

Juma Abdalla Gafo v Postal Corporation of Kenya [2019] KEELRC 2170 (KLR)

Employment and Labour Relations Court
22 February 2019
1,743 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court threw out a former Postal Corporation worker's Kshs. 3.3 million claim because it was filed more than a year after dismissal.

What this practically means

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Executive summary

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The Claimant sued his former employer, a State Corporation, for wrongful dismissal, seeking a declaration, terminal dues of Kshs. 3,363,915, gratuity, costs and interest. The suit was filed in the Chief Magistrate's Court Mombasa in 2004 and transferred to the Employment and Labour Relations Court on jurisdictional grounds. The Respondent filed a Notice of Preliminary Objection in October 2018, arguing that the Claim offended Section 24 of the Postal Corporation Act, which requires notice to the Postmaster General and commencement of proceedings within 12 months of the act complained of. The Objection was argued on submissions and pleadings. The Respondent relied on Court of Appeal authorities establishing that such time-bar provisions are jurisdictional, including Kenya Ports Authority v Cyrus Maina Njoroge and Owners of Motor Vessel Lilian S. The Claimant relied on a High Court decision holding Section 24 inapplicable to employment contracts, and argued that his cause of action accrued on rejection of his internal appeal in August 2003, making his August 2004 filing timely. The Court deferred to the Court of Appeal authorities, holding they supersede inferior court decisions, and found the Claim filed out of time, the internal appeal having no effect on accrual of the cause of action. However, the second limb of the Objection failed: following Kenya Bus Service, the Court held Section 24(a)'s notice requirement unconstitutional as an impediment to access to justice. The Claim was rejected as time-barred, with no order on costs. The Court also discussed the effective date of termination, applying Societe Generale v Geys and Newcastle upon Tyne Hospitals NHS Foundation Trust v Haywood.

Key legal issues

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01

Whether Section 24 of the Postal Corporation Act applies to employment disputes

Holding

The Court accepted that the better interpretation is that Section 24 protects the Corporation's core business functions under Section 5 and not employment contracts, but nonetheless followed binding Court of Appeal authority that such time-bar provisions are jurisdictional, resulting in the Claim being rejected as out of time.

Reasoning

The Claimant relied on a High Court decision holding Section 24 inapplicable to employment contracts. The Court agreed that interpretation appeared correct but held that Court of Appeal decisions supersede those of inferior courts, and the Court of Appeal in Kenya Ports Authority v Cyrus Maina Njoroge affirmed that the equivalent KPA Act provision is a jurisdictional law requiring claims within one year.

p. 2
02

Effect of the Claimant's Internal Appeal on the accrual of the cause of action

Holding

The internal appeal had no effect on the date the cause of action arose; the claim accrued on dismissal on 31st March 2003.

Reasoning

Relying on Court of Appeal decisions, the Court held that non-adjudicatory internal mechanisms do not extend the limitation period. Dismissal took effect on 31st March 2003; the Claim filed on 20th August 2004 fell outside the 12-month window in Section 24(b).

p. 2
03

Whether the notice requirement in Section 24(a) (notice to the Postmaster General) is enforceable

Holding

The second limb of the Preliminary Objection failed; Section 24(a) was held unconstitutional as an impediment to access to justice, following the High Court's treatment of Section 13A of the Government Proceedings Act.

Reasoning

The High Court in Kenya Bus Service Ltd v Minister of Transport declared Section 13A of the Government Proceedings Act unconstitutional as an impediment to access to justice. Section 24(a) is of the same genre and therefore incapable of sustaining the Respondent's objection based on non-compliance with the notice requirement.

p. 2
04

When termination of employment takes effect

Holding

Termination takes effect when notice is received (and read, or with reasonable opportunity to read it) or when notice pay is received; the date in the termination letter is not immutable.

Reasoning

Applying Societe Generale v Geys and Newcastle upon Tyne Hospitals NHS Foundation Trust v Haywood, the Court emphasised that the effective date of termination has significant legal consequences, including limitation and terminal benefits, and must be critically examined rather than taken at face value.

p. 2

Legal principles established

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  • Time-bar provisions in State Corporations' constitutive Acts are jurisdictional in nature, per Court of Appeal authority which this Court defers to
  • Decisions of the Court of Appeal supersede those of courts below, so the Court of Appeal's treatment of the KPA Act time-bar prevails over a contrary High Court interpretation
  • Termination takes effect when notice is received and read, or there is reasonable opportunity to read it, not merely on the date expressed in the termination letter
  • Statutory notice-of-intention-to-sue provisions modelled on Section 13A of the Government Proceedings Act are unconstitutional impediments to access to justice
  • Internal appeals and other non-adjudicatory mechanisms have no effect on the date the cause of action arose

Court orders

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  1. 1.The Claim is time-barred under Section 24(b) of the Postal Corporation Act, and is therefore rejected
  2. 2.No order on the costs

Authorities

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Legislation

  • Postal Corporation ActSection 24 (including 24(a) and 24(b))
  • Postal Corporation ActSection 5
  • Kenya Ports Authority ActSection 66
  • Kenya Railways Corporation ActSection 87 (Cap 397)
  • Kenya Airports Authority ActSection 34 (No. 3 of 1991)
  • Employment ActSections 36, 40(1)(f) and 90
  • Limitation of Actions Act
  • Government Proceedings ActSection 13A

Cases cited (10)

  • Kenya Ports Authority v. Cyrus Maina Njoroge
    Civil Appeal No. 89 of 2017
  • Attorney-General & Anor v. Andrew Maina Githinji & Anor
    [2016] e-KLR
  • Rift Valley Railways [Kenya] Limited v. Hawkins Wagunza Musonye & Anor
    [2016] e-KLR
  • Owners of Motor Vessel Lilian S v. Caltex Oil [K] Limited
    [1989] KLR
  • Postal Corporation of Kenya v. Peter Achar & Another
    [2012] e-KLR
  • Telkom Kenya Limited v. Kenya Railways Corporation
    [2018] eKLR
  • Societe Generale, London Branch v. Geys
    [2012] UKSC
  • Alex Kiema Mwinzi v. Factory Guards Limited
    [2018]
  • Newcastle upon Tyne Hospitals NHS Foundation Trust v. Haywood
    [2018] UKSC 22
  • Kenya Bus Service Limited & Anor v Minister of Transport & 2 Ors
    [2012] e-KLR
On appeal from
Chief Magistrate's Court Mombasa (transferred on jurisdictional grounds, not on appeal)
Jurisdiction invoked
Jurisdiction transferred from the Chief Magistrate's Court Mombasa to the Employment and Labour Relations Court on jurisdictional grounds

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, "Juma Abdalla Gafo v Postal Corporation of Kenya [2019] KEELRC 2170 (KLR)", Case Analysis (2019). Not stated in the judgment (ELRC Mombasa, transferred from Chief Magistrate's Court Mombasa). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/2170/eng@2019-02-22

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