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ELRCStruck OutNot stated in the judgment excerpt· [2021] KEELRC 1366 (KLR)

Chrisopher Warui v Office of the Auditor General & another [2021] KEELRC 1366 (KLR)

Employment and Labour Relations Court
29 June 2021
2,400 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court struck out a retired civil servant's pension claim, ruling pension disputes belong elsewhere and must be filed within three years.

What this practically means

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Executive summary

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The Respondents filed preliminary objections against the Claimant's claim of 15th October 2020, contending that the suit was time-barred under Section 90 of the Employment Act, an abuse of process, and outside the jurisdiction of the Employment and Labour Relations Court in light of the Supreme Court's decision in Albert Chaurembo Mumba, which held that disputes between pension scheme trustees and pensioners are governed by the Retirement Benefits Act and trust law, not employment law. The Claimant countered that his claim concerned breach of his employment contract - the failure to implement an SRC-approved salary increment in computing his pension - rather than a dispute with pension trustees, that the Supreme Court decision was distinguishable, and that continuing underpayment of his monthly pension constituted a continuing injury keeping the claim alive. The Claimant had served the 1st Respondent for 35 years, retired on 20th July 2015, and filed suit on 15th October 2020 after protracted correspondence and after the 1st Respondent vacated the Director of Pensions' advice to revise former employees' pension dues. The court held that the claim was in substance one for pension dues, which the Supreme Court's binding decision placed outside the Court's jurisdiction, and that in any event the claim was filed more than three years after retirement and was therefore statute-barred. The preliminary objections were upheld, the suit was struck out, and each party was ordered to bear their own costs.

Key legal issues

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01

Jurisdiction of the ELRC over pension disputes involving former employees

Holding

The court held that a claim by a retired civil servant for pension benefits is not within the ELRC's jurisdiction, the employer-employee relationship having ended on retirement, per the binding Supreme Court decision in Albert Chaurembo Mumba

Reasoning

The court relied on the Supreme Court's holding that once a member leaves employment and becomes a pensioner, the relationship becomes one of trustee and beneficiaries governed by the Retirement Benefits Act and trust law, not employment law, and that the ELRC Act confers no jurisdiction over such disputes. The court considered the claimant's assertion that his claim was about breach of the employment contract (non-implementation of an SRC salary increment) but found the claim to be in substance one for pension dues.

p. 3
02

Limitation under Section 90 of the Employment Act

Holding

The claim was statute-barred, having been filed more than three years after the cause of action arose on the claimant's retirement on 20th July 2015, with no continuing injury to bring it within the proviso

Reasoning

The cause of action arose on retirement on 20th July 2015; the suit was filed on 15th October 2020, over five years later. The court found no justification for the delay and rejected the claimant's argument that ongoing underpayment of monthly pension constituted a continuing injury. Section 90 is in mandatory terms and admits no extension of time.

p. 3
03

Whether the claim was an abuse of process warranting striking out

Holding

The suit was found devoid of merit and incompetent and was struck out

Reasoning

Both the jurisdictional defect and the statutory bar rendered the suit incompetent. The court struck it out rather than dismissing it, exercising its power on the preliminary objections.

p. 3

Legal principles established

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  • A pensioner's dispute with the trustees of a pension scheme is outside the jurisdiction of the Employment and Labour Relations Court, the relationship being one of trustee and beneficiary governed by the Retirement Benefits Act and trust law
  • Claims based on the Employment Act or a contract of service must be instituted within three years, and there is no discretion to extend time under Section 90 of the Employment Act

Court orders

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  1. 1.The suit is struck out
  2. 2.Each party to bear their own costs

Authorities

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Legislation

  • Employment Act, 2007Section 90
  • Employment and Labour Relations Court ActSection 12(2)
  • Retirement Benefits Authority ActSections 46 and 47
  • Limitation of Actions Act (Cap. 22)Section 4(1)
  • Trustee Act (Cap 167)Not specified
  • Constitution of Kenya, 2010Article 165(3)(d)(ii)

Cases cited (10)

  • Albert Chaurembo Mumba & 7 Others v Maurice Munyao & 148 Others
    [2019] eKLR
  • Mukisa Biscuits Manufacturing Ltd v West End Distributors Ltd
    [1969] EA 696
  • Republic v Karisa Chengo & 2 Others
    [2017] eKLR
  • Beatrice Kahai Adagala v Postal Corporation of Kenya
    [2015] eKLR
  • Ephraim Gachigua Mwangi v Teachers Service Commission & Board of Management Thogoto Teachers College
    [2018] eKLR
  • David Ngugi Waweru v Attorney General & Another
    [2017] eKLR
  • Abdullahi Ali Mohammed v Kenya Ports Authority & Another
    [2016] eKLR
  • Sarah Mang'oli v Kenya Medical Research Institute & Another
    [2020] eKLR
  • Republic v Attorney General & Another Ex-Parte Sister Nabwire Hendrika
    [2016] eKLR
  • Humphrey Mackori Nyagoe v Kenya Airports Authority & Another
    [2019] eKLR
Jurisdiction invoked
Section 12 of the Employment and Labour Relations Court Act (in issue whether the Court has jurisdiction over pension-related claims); Section 90 of the Employment Act, 2007 on limitation

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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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, "Chrisopher Warui v Office of the Auditor General & another [2021] KEELRC 1366 (KLR)", Case Analysis (2021). Not stated in the judgment excerpt. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/1366/eng@2021-06-29

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