Transport Workers Union v Glory Driving School [2020] KEELRC 399 (KLR)
The bottom line
#A Kenyan court ruled a driving school's redundancy of 29 workers was unfair because the employer skipped mandatory legal steps and acted right after signing a union agreement.
What this practically means
#Executive summary
#Key legal issues
#Whether the redundancy amounted to unfair termination
Yes. The Respondent failed to comply with section 40(1) of the Employment Act and paragraphs 23(c) and (d) of the CBA, and failed to justify the redundancy
The Respondent did not prove financial constraints or any justification for the redundancies; it opened new branches after the terminations and re-engaged some grievants. It failed to show the selection criteria required by section 40(1)(c) and CBA paragraph 23(d), did not consult the union as required by CBA paragraph 23(c), and did not prove payment of terminal dues under section 40(1)(e), (f) and (g). The redundancy notices issued soon after CBA negotiations concluded, suggesting the redundancy was used to avoid CBA benefits.
Entitlement to compensation, notice pay and unpaid salary
Compensation awarded on a sliding scale by length of service; one month's notice pay awarded; salary for 10th to 26th March 2013 awarded
Having found unfair termination, the court exercised its discretion under sections 45 and 49 of the Employment Act, considering length of service, the manner of the redundancy immediately after signing the CBA, and release without terminal benefits. Notice pay was due because the Respondent did not notify the union and labour officer as required by section 40(1)(a) and the CBA. Unpaid salary was awarded because the Respondent disobeyed court orders staying the redundancy.
Legal principles established
#- An employer SHALL NOT terminate employment on account of redundancy unless it complies with all the conditions in section 40(1) of the Employment Act; failure to do so renders the termination unfair within the meaning of section 45
- The employer bears the burden of proving the criteria used in selecting employees for redundancy, with due regard to seniority, skill, ability and reliability as required by section 40(1)(c)
- An employer asserting financial constraint as justification for redundancy must adduce evidence to prove it; a redundancy declared immediately after concluding a CBA, without complying with section 40 or the CBA, may amount to an unfair labour practice
Court orders
#- 1.A declaration that the termination of the 29 Grievants on account of redundancy amounted to unfair termination
- 2.Compensation for unfair termination: 3 months' salary for Grievants with 1-3 years' service; 5 months' salary for 4-6 years; 8 months' salary for 7-9 years; 12 months' salary for 10-18 years or more
- 3.One month's salary in lieu of redundancy notice for each Grievant
- 4.Payment of unpaid salary for the period 10th March to 26th March 2013, the Respondent having disobeyed court orders staying the redundancy
- 5.The Respondent to issue each Grievant with a certificate of service in line with Section 51(2) of the Employment Act
- 6.The Respondent to bear the costs of the suit
- 7.Tabulation of compensation and notice pay to follow the salaries in the schedule provided by the Claimant in its submissions, with length of service reckoned from the date of first appointment
- 8.The judgment applies only to the 29 Grievants who signed the authority to act
- Jurisdiction invoked
- Original employment and labour relations jurisdiction (Memorandum of Claim filed under the Employment Act); no specific constitutional or statutory provision invoked for jurisdiction in the judgment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Transport Workers Union v Glory Driving School [2020] KEELRC 399 (KLR)", Case Analysis (2020). Cause No 296 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/399/eng@2020-10-09
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.