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ELRCDismissedNotice of Motion dated 2nd March 2020 (ELRC Cause - number not stated in judgment)· [2020] KEELRC 595 (KLR)

Sarah Mang’oli v Kenya Medical Research Institute & another [2020] KEELRC 595 (KLR)

Employment and Labour Relations Court
30 July 2020
HWHellen Wasilwa
2,826 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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The Respondents, Kenya Medical Research Institute and its Staff Retirement Benefit Scheme, brought a Notice of Motion dated 2nd March 2020 seeking to strike out the Claimant Sarah Mang’oli's suit, or alternatively her pension claim, for want of jurisdiction, with costs. They argued that the Claimant, having retired in 2018, was a pensioner whose relationship with the employer had become that of trustee and beneficiary governed by the Retirement Benefits Act, whose Sections 46-49 provide an exhaustion mechanism before the Retirement Benefits Appeals Tribunal. They relied on Staff Pension Fund v Ann Wangui Ngugi (Court of Appeal) and Albert Chaurembo Mumba (Supreme Court). The Claimant countered that her claim was that the employer deducted pension contributions from her salary and failed to remit them to the scheme, an outstanding amount of Kshs. 2,833,993.04 as at 30th June 2018, and that she remained in staff quarters pending settlement of dues per the employer's practice. She relied on Abdullahi AH Mohammed and Betty U Chamba to show the ELRC's jurisdiction extends to post-employment disputes. The Court held that Sections 46-49 of the Retirement Benefits Act govern disputes between a scheme member and the scheme's manager, administrator, custodian or trustees, whereas the Claimant's grievance was against her employer's non-remittance. The claim emanated from the contract of employment and was a breach of that contract, not a pension dispute, distinguishing the authorities cited. The preliminary objection was dismissed with costs in the cause, and the claim directed to proceed before the Court.

Key legal issues

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01

Jurisdiction of the ELRC over claims for unremitted pension contributions

Holding

The ELRC has jurisdiction where the claim is that the employer failed to remit pension deductions, as such a claim arises from the contract of employment

Reasoning

The Court distinguished the authorities relied on by the Applicants, which concerned disputes with pension scheme administrators or trustees. Here the grievance is against the employer for deducting pension contributions from salary and failing to remit them to the scheme, an obligation arising out of the employment relationship. The Court therefore found the preliminary objection without merit.

p. 4
02

Scope of the Retirement Benefits Act dispute resolution mechanism

Holding

Sections 46-49 apply only to disputes between a scheme member and the manager, administrator, custodian or trustees of the scheme; the Claimant has no dispute with the 2nd Respondent scheme

Reasoning

Section 46 requires dissatisfaction with a decision of the manager, administrator, custodian or trustees of a scheme. The Claimant's pleaded grievance is against her employer's non-remittance, not any decision of the scheme, so the statutory exhaustion mechanism was not triggered.

p. 4

Legal principles established

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  • A claim that the employer failed to remit pension contributions deducted from an employee's salary emanates from the contract of employment and is not a pension dispute within the Retirement Benefits Act dispute resolution mechanism
  • Matters under Section 46 of the Retirement Benefits Act concern disputes between a member and the manager, administrator, custodian or trustee of a scheme and are handled by the Retirement Benefits Appeals Tribunal

Court orders

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  1. 1.The Preliminary Objection/application seeking striking out of the suit for want of jurisdiction is dismissed
  2. 2.The claim proceeds before the Court
  3. 3.Costs in the cause

Authorities

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Legislation

  • Retirement Benefits ActSections 46, 47, 48, 49 (Nos. 3 of 1997)
  • Employment and Labour Relations Court ActSection 12
  • Constitution of Kenya, 2010Articles 41, 162(2)
  • Trustee ActNot specified

Cases cited (8)

  • Staff Pension Fund & Kenya Commercial Bank Staff Retirement (DC) Scheme 2006 & Another v Ann Wangui Ngugi & 524 Others
    Civil Appeal No. 20 of 2017 [2018] eKLR
  • Albert Chaurembo Mumba & 7 Others v Maurice M. Munyao & 148 Others
    Petition 3 of 2016 [2019] eKLR; [2016] eKLR
  • Abdullahi AH Mohammed v Kenya Ports Authority & another
    [2016] eKLR
  • Samuel Kamau Macharia & Anor v K.C.B. & 2 Others
    [2012] eKLR
  • Jimmy R. Kavilu & 16 others v Stanbic Bank Kenya Limited & 7 others
    (2019) eKLR
  • Abdalla Osman & 628 others v Standard Chartered Bank (K) Limited & 11 others
    ELRC Cause No. 59 of 2018 [2018] eKLR
  • Richard Maina Mwangi v John Kaguchia Chairman Mukurwe-Ini Constituency Development Fund Committee and Another
    [2015] eKLR
  • Betty U Chamba v Kenya Ports Authority & another
    [2019] eKLR
Jurisdiction invoked
Article 162(2) read with Article 41 of the Constitution of Kenya, 2010; Section 12 of the Employment and Labour Relations Court Act

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (6)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Sarah Mang’oli v Kenya Medical Research Institute & another [2020] KEELRC 595 (KLR)", Case Analysis (2020). Notice of Motion dated 2nd March 2020 (ELRC Cause - number not stated in judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/595/eng@2020-07-30

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