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ELRCPartially AllowedAppeal No 22 of 2016· [2021] KEELRC 2418 (KLR)

Variety Flooring Works Limited v Matheka (Appeal 22 of 2016) [2021] KEELRC 2418 (KLR)

Employment and Labour Relations Court
3 November 2021
1,581 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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This was an appeal to the Employment and Labour Relations Court at Nairobi, decided by Nzioki wa Makau, J, against a ruling of Hon. Senior Principal Magistrate Grace Mmasi delivered on 19th August 2016 in Milimani CMCC No. 2476 of 2015, in which the magistrate disallowed a Notice of Motion seeking to strike out the Respondent's plaint as statute-barred. The Appellant argued that the Respondent's claim, arising from workplace injuries in 2012, was filed on 30th April 2015, outside the three-year period prescribed by Section 90 of the Employment Act, 2007, and that the magistrate was bound by precedent to strike it out. The Respondent countered that settlement negotiations amounted to alternative dispute resolution which suspended accrual of the cause of action, invoking authorities and the doctrine of legitimate expectation, and noting that the G4S decision to the contrary post-dated his filing. The court held that limitation is prescribed by statute, that Section 90 caps employment claims at three years, and that time ran continuously regardless of the Respondent's treatment or negotiations; limitation set in on 2nd February 2015, rendering the April 2015 suit stale. The court allowed the appeal, set aside the magistrate's order, allowed the Notice of Motion, struck out the plaint and the suit, and made no order as to costs.

Key legal issues

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01

Applicability of Section 90 of the Employment Act limitation period

Holding

The suit filed on 30th April 2015, arising from injuries of 2nd February 2012, was statute-barred as limitation set in on 2nd February 2015

Reasoning

The court held that limitation is prescribed by statute and that Section 90 of the Employment Act provides a clear 3-year timeline for claims arising out of contracts of service. The law had been in force since 2007, evidencing legislative intent to cap limitation at 3 years. The plaintiff's ongoing treatment or settlement negotiations did not stop time from running, so the plaint was a stale suit.

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02

Whether the doctrine of legitimate expectation or ADR suspends limitation

Holding

The court rejected the argument implicitly by holding time ran continuously notwithstanding the respondent's conciliation/treatment claims

Reasoning

The Respondent argued that time spent in conciliation or alternative dispute resolution suspended accrual of the cause of action, relying on several authorities and invoking legitimate expectation. The court did not accept this, finding that limitation set in on 2nd February 2015 regardless of treatment or settlement discussions, and that the suit filed in April 2015 was misplaced and should suffer the fate of a stale suit.

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03

Failure of the trial Magistrate to give reasons

Holding

The magistrate's ruling was set aside and the striking-out application allowed

Reasoning

The Appellant complained that the magistrate's ruling merely observed the application had no merit without addressing its arguments and authorities. On re-evaluation of the limitation issue, the court found the suit statute-barred and therefore set aside the ruling of 19th August 2016 and allowed the Notice of Motion striking out the plaint and the suit.

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Legal principles established

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  • Limitation is prescribed by statute; Section 90 of the Employment Act caps employment claims at 3 years from when the cause of action accrues
  • Time continues to run during conciliation or treatment; the limitation period under Section 90 is not suspended

Court orders

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  1. 1.The Learned Magistrate's order of 19th August 2016 set aside
  2. 2.Substituted with an order allowing the Notice of Motion application dated 5th April 2016
  3. 3.Striking out the Plaint and consequently the suit in Nairobi CMCC No. 2476 of 2015
  4. 4.No order as to costs

Authorities

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Legislation

  • Employment ActSection 90
  • Limitation of Actions ActSection 26
  • Constitution of Kenyaalternative dispute resolution mechanisms provisions

Cases cited (8)

  • Laban Chema Libabu v Bata Shoe Company (K) Limited
    [2013] eKLR, Misc. App No. 46 of 2013 Nairobi
  • Banking Insurance & Finance Union (Kenya) v Kirinyaga District Co-operative Union Ltd & Anor
    [2014] eKLR, Industrial Cause No. 6 of 2013
  • Kenya Electrical Traders & Allied Workers Union v Kenya Power & Lighting Company Ltd
    Misc. App No. 3 of 2015
  • Kenya Plantation & Agricultural Workers Union v Mununga Leaf Base
    [2013] eKLR
  • Leonida Makokha & 3 Others v Munene Estate Limited
    [2014] eKLR
  • Kenya Scientific Research International Technical and Allied Institutions Workers Union v Rainald Schumer's & Another
    [2012] eKLR
  • G4S Security Services (K) Limited v Joseph Kamau & 468 Others
    [2018] eKLR
  • Communications Commission of Kenya & 5 Others v Royal Media Services Limited & 5 Others
    [2014] eKLR
On appeal from
Chief Magistrates Court (Milimani)
CMCC No. 2476 of 2015
Jurisdiction invoked
Appellate jurisdiction over appeals from the magistrates' court in a claim arising from a contract of service under the Employment Act, 2007

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, "Variety Flooring Works Limited v Matheka (Appeal 22 of 2016) [2021] KEELRC 2418 (KLR)", Case Analysis (2021). Appeal No 22 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/2418/eng@2021-11-03

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