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ELRCPartially AllowedCause Nos. 309, 316, 317, 466, 524, 526, 688, 690, 1347 and 1537 of 2015· [2020] KEELRC 1753 (KLR)

Serah Nthule Muthiani & 9 others v Chandaria Industries Limited [2020] KEELRC 1753 (KLR)

Employment and Labour Relations Court
31 January 2020
MOMaureen Onyango
816 words in judgment
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The bottom line

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Ten former employees won unpaid notice and service pay from their employer after a Kenyan employment court adopted an earlier judgment covering identical terminations.

What this practically means

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Executive summary

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This is a consolidated first-instance judgment of the Employment and Labour Relations Court at Nairobi in ten employment causes (Nos. 309, 316, 317, 466, 524, 526, 688, 690, 1347 and 1537 of 2015) brought by former employees of the respondent, all terminated together in the same circumstances. The court relied on its earlier judgment of 11th October 2019 in Cause No. 808 of 2015 (consolidated with Cause No. 312 of 2015), which found that the claimants were not declared redundant but were terminated following their refusal to relocate to another department or take leave while the respondent overhauled its machinery and equipment, with the union fully involved. On 12th November 2019 the parties agreed in court that the judgment in Cause No. 808 of 2015 be adopted in all the related suits. The court therefore adopted it and, applying CBA Clause 20 (notice scales: 1 month for 1-5 completed years, 2 months for 6-10 years, 3 months for over 10 years) and Clause 21(e) (22 days' service pay per completed year of redundancy), awarded each claimant the balance of notice pay (2 months' salary less the Kshs.3,297 already paid, where applicable) and the balance of service pay, tabulated per claimant according to years of service and last salary, with some claimants recorded as having been paid in full. The respondent was ordered to pay the claimants' costs, with instruction fees based on the consolidated judgment as the cases were heard together. The judgment was delivered at Nairobi on 31st January 2020 by Maureen Onyango, Judge.

Key legal issues

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01

Adoption of prior judgment in related suits

Holding

The judgment in Cause No. 808 of 2015 was adopted in all related suits as the parties agreed on 12th November 2019, since the claimants' services were terminated together under the same circumstances

Reasoning

All claimants were former employees terminated together under the same circumstances; similar suits had already been determined with a finding that the terminations followed refusal to relocate or take leave during an overhaul, and the union was fully involved. By consent in open court, that judgment governs these consolidated causes.

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02

Quantum of notice and service pay under the CBA

Holding

Each claimant was awarded 2 months' notice (less Kshs.3,297 already paid) where they had 6-10 completed years of service, and balance of service pay at 22 days per completed year of service, calculated on last salary per the tabulated schedule

Reasoning

The court applied CBA Clause 20 (notice scales) and Clause 21(e) (entitlement of redundant employees to 22 days' pay per completed year). Where the earlier judgment found underpayment of notice (Kshs.3,297 paid instead of 2 months' salary) and shortfall in service pay for years worked, the corresponding balances were awarded to each claimant based on individual service records.

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Legal principles established

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  • Where parties agree in court that a judgment in a similar suit be adopted in related suits, the court adopts it and applies the same calculations to each claimant based on years of service and last salary under the CBA
  • Under CBA Clause 20, employees with 6 to 10 completed years of service are entitled to 2 months' notice on termination

Court orders

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  1. 1.Adoption of the judgment in Cause No. 808 of 2015 in all the consolidated suits by agreement of the parties
  2. 2.Award to each claimant of notice pay (2 months less Kshs.3,297 paid) and balance of service pay per the tabulated schedule, with those recorded as 'Paid in full' receiving amounts already paid
  3. 3.The respondent shall pay costs to the claimants
  4. 4.Instruction fees shall be based on the consolidated judgment as the cases were heard together

Authorities

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Legislation

  • Collective Bargaining Agreement (between the parties)Clause 20 (Termination of Service - notice)
  • Collective Bargaining Agreement (between the parties)Clause 21(e) (Entitlement of Redundant Employees)
  • Collective Bargaining Agreement (between the parties)Clause 19(a)
Jurisdiction invoked
Employment and Labour Relations Court, first-instance jurisdiction over employment causes (Cause numbers under ELRC); specific statutory provision not stated

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, "Serah Nthule Muthiani & 9 others v Chandaria Industries Limited [2020] KEELRC 1753 (KLR)", Case Analysis (2020). Cause Nos. 309, 316, 317, 466, 524, 526, 688, 690, 1347 and 1537 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1753/eng@2020-01-31

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