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ELRCPartially AllowedCause (not stated in judgment excerpt)· [2021] KEELRC 957 (KLR)

Kenya Private Universities Non-Teaching Workers Union v Pan Africa University [2021] KEELRC 957 (KLR)

Employment and Labour Relations Court
23 September 2021
3,285 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that paying severance isn't enough—an employer must give at least 30 days' notice before a redundancy takes effect, or pay compensation.

What this practically means

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Executive summary

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The Claimant Union sued the Respondent University in April 2015 on behalf of 11 Grievants declared redundant on 17th April 2015, alleging the redundancy was unfair, unprocedural and motivated by the Grievants' affiliation to the Union. The Union sought declarations under Sections 40 and 45 of the Employment Act, 12 months' compensation, notice pay, outstanding wages, certificates of service and costs. The Respondent denied prior knowledge of union membership, asserting the redundancy began in 2014 pursuant to a directive of the Commission for University Education, that the Grievants were consulted, notified and paid their dues, and that they signed release letters. One witness testified for each side. The Respondent contended the Claimant failed to prove union membership or the quantified dues, relying on Section 47(5) on burden of proof. The court found that although terminal dues including notice, severance and accrued leave were calculated and paid, the redundancy letters dated 15th April 2015 took effect on 16th April 2015, contrary to Section 40's requirement of at least 30 days' notice. The redundancy was therefore improperly declared, entitling the Grievants to recompense. The certificates of service, issued subject to an impermissible condition under Section 51, were declared invalid. The claim based on union membership was not sustained, the issue remaining fluid and unproved. The court awarded each Grievant 2 months' salary as compensation, with itemised amounts per Grievant, costs quantified at Kshs. 40,000/-, and interest at court rates from the date of judgment until payment in full.

Key legal issues

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01

Compliance with Section 40 procedural requirements for redundancy

Holding

The redundancy was procedurally flawed because the letters dated 15th April 2015 took effect on 16th April 2015, contrary to the requirement of at least 30 days' notice

Reasoning

The court found that although terminal dues including notice pay, severance and accrued leave were calculated and paid, the redundancy notices gave the Grievants no statutory notice period. Section 40 requires at least one month's notice to the employee and the labour officer, allowing time for consultations and verification of preconditions. Taking effect one day after issue defeated the statutory scheme, rendering the redundancy unlawful and entitling the Grievants to compensation.

02

Burden of proof of union membership and alleged victimisation for union activities

Holding

The claim that the Grievants were terminated for union membership was not sustained; the issue of membership remained unproved

Reasoning

The Respondent denied ever receiving notification of union membership, and the Respondent's witness confirmed receipt of Form 'S' only in late March 2015, close to the redundancy. No union official testified or signed witness statements to prove membership. The court did not found the claim on victimisation for union activities, treating the issue of membership as fluid and unestablished, and instead rested liability on the procedural defects in the redundancy declaration.

p. 3
03

Validity of the certificates of service issued

Holding

The certificates of service were invalid because the Respondent imposed a condition of seeking additional information from the employer, contrary to Section 51 of the Employment Act

Reasoning

Section 51 regulates what a certificate of service must contain and does not permit an employer to attach conditions requiring employees to seek additional information from the employer. By imposing such a condition, the Respondent issued certificates that did not accord with the statute. The court declared them invalid in law and directed that they be reissued in accordance with the law.

p. 3

Legal principles established

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  • A redundancy declaration must comply with the notice period required under Section 40 of the Employment Act; letters taking effect one day after issue breach the statutory 30-day notice
  • Where a redundancy is not properly declared, the affected employees are entitled to compensation
  • A certificate of service issued subject to conditions not permitted by Section 51 of the Employment Act is invalid and must be reissued in accordance with the law

Court orders

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  1. 1.Judgment entered for the Grievants against the Respondent for 2 months' salary each as compensation for unlawful redundancy, itemised per Grievant
  2. 2.Costs of the suit quantified at Kshs. 40,000/- payable by the Respondent
  3. 3.Interest on the compensation sums at court rates from the date of judgment until payment in full

Authorities

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Legislation

  • Employment Act, 2007Section 40
  • Employment Act, 2007Section 45
  • Employment Act, 2007Section 47(5)
  • Employment Act, 2007Section 51
  • Labour Relations Act, 2007
  • Constitution of KenyaArticle 41
  • Regulation of Wages (General) (Amendment) Orders – Minimum Wages Orders2009, 2012 and 2015 Orders

Cases cited (8)

  • Joseph Chege Njeri v Bollore Transport & Logistics Kenya Limited
    [2019] eKLR
  • Mary Nyawira Karimi v Pure Circle (K) Limited
    [2018] eKLR
  • Kenya Airways Limited v Aviation & Allied Workers Union Kenya & 3 Others
    [2014] eKLR
  • Gerrishom Mukhutsi Obayo v Dsv Air & Sea Limited
    [2018] eKLR
  • Barclays Bank of Kenya Ltd & Another v Gladys Muthoni & 20 Others
    [2018] eKLR
  • Amalgamated Union of Kenya Metal Workers v Associated Motors Limited
    [2021] eKLR
  • Pure Circle (K) Ltd v Paul Koech & 12 Others
    [2018] eKLR
  • Mercy Wangari v Total Kenya Limited
    [2020] eKLR
Jurisdiction invoked
First-instance employment and labour relations jurisdiction under Article 162(2) of the Constitution (implied; the judgment does not expressly invoke a jurisdictional provision)

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, "Kenya Private Universities Non-Teaching Workers Union v Pan Africa University [2021] KEELRC 957 (KLR)", Case Analysis (2021). Cause (not stated in judgment excerpt). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/957/eng@2021-09-23

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