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ELRCDismissedNotice of Motion dated 25th November 2019 (Claimant's application)· [2020] KEELRC 414 (KLR)

Dock Workers Union (K) v Kenya Ports Authority [2020] KEELRC 414 (KLR)

Employment and Labour Relations Court
8 October 2020
1,736 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 ruled that staff housing rights end when employment ends, so KRA could evict its former employees despite pending appeals.

What this practically means

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Executive summary

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The Dockworkers Union, as Claimant, moved the Employment and Labour Relations Court at Mombasa by Notice of Motion dated 25th November 2019 seeking to restrain the Respondent, Kenya Revenue Authority, from evicting three former employees (Grievants) - Zuhura Ali, Elphas Mang'oli and Stephen Muthui - from its staff houses. The Union argued that the Grievants' appeals against termination had not been exhausted and that they enjoyed running tenancies. The Respondent, through the affidavits of Constance Mcharo and Bildad Kisero, showed that all three Grievants' employment had been terminated following disciplinary processes and appeals; it relied on its Housing Policy (requiring vacation within one month of dismissal) and on Sections 31 and 26 of the Employment Act and Section 12(2)(l) of the Kenya Revenue Authority Act. During the hearing Muthui died and his claim lapsed; Mang'oli's claim had already been dismissed by Makau J in Cause No 61 of 2016 and only a Court of Appeal appeal was pending; Ali produced no evidence of a pending internal process. The Court, per Linnet Ndolo J, applied Makau J's decision in Fadhil Juma Kisua, holding that Section 31 housing rights end with employment, and found that the check-off rent arrangement, coupled with house allowances exceeding rent, constituted negotiated superior terms of employment under Section 26, not a tenancy. Applying Giella v Cassman Brown, the Court found the Claimant had not established a prima facie case or irreparable harm. The application was disallowed, interim orders of 27th November 2019 discharged, and each party ordered to bear its own costs.

Key legal issues

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01

Whether housing rights under Section 31 of the Employment Act survive termination of employment

Holding

They do not; the right is available only while the employment relationship exists

Reasoning

The Court adopted Makau J's reasoning in Fadhil Juma Kisua that Section 31 housing is either physical shelter or a housing allowance tied to employment. From the evidence, the Grievants were no longer employees, and pending appeals did not alter that fact. Clause L.3 of the Housing Policy also required vacation upon retirement, death, dismissal or resignation.

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02

Whether occupation of staff houses at market-rate rent created a tenancy surviving employment

Holding

No tenancy was created; the arrangement was superior terms of employment under Section 26 of the Employment Act

Reasoning

Rent was recovered through check-off from salaries, and the Grievants were paid house allowance exceeding the rent charged. The Court found the parties negotiated superior employment terms, which did not create a tenancy agreement outside the employment relationship.

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03

Whether the Claimant satisfied the Giella v Cassman Brown conditions for an injunction

Holding

It did not; the assertion that eviction would compromise the right of appeal was unsupported by evidence

Reasoning

The Court applied the Giella v Cassman Brown criteria: prima facie case, irreparable harm and balance of convenience. The only claim advanced - that vacating the houses would compromise the Grievants' appeals - was neither extrapolated nor backed by evidence, so the injunction could not issue.

p. 3

Legal principles established

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  • The right to housing under Section 31 of the Employment Act exists only during the employment relationship and does not survive termination unless the employer permits continued occupation
  • Payment of market-rate rent by check-off coupled with house allowance in excess of rent constitutes negotiated superior terms of employment under Section 26, not a landlord-tenant relationship

Court orders

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  1. 1.The application dated 25th November 2019 is disallowed
  2. 2.The interim orders issued on 27th November 2019 are discharged
  3. 3.Each party will bear their own costs
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment dispute between the Union and the Respondent as employer (Employment Act, 2007; Section 12 of the Employment Act referenced by the parties)

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, "Dock Workers Union (K) v Kenya Ports Authority [2020] KEELRC 414 (KLR)", Case Analysis (2020). Notice of Motion dated 25th November 2019 (Claimant's application). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/414/eng@2020-10-08

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