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ELRCPartially AllowedNot stated in the judgment as provided· [2022] KEELRC 52 (KLR)

Kenya Union of Commercial, Food and Allied Workers v National Social Security Fund (Cause 968 of 2017) [2022] KEELRC 52 (KLR)

Employment and Labour Relations Court
11 May 2022
2,281 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 confirmed that a Collective Bargaining Agreement overrides an employer's HR manual, so the NSSF employee won his transfer allowance.

What this practically means

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Executive summary

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The Claimant, a trade union, filed a claim on behalf of its member, grievant Dismas Nyamweya Osano, an employee of the Respondent, the National Social Security Fund, seeking payment of transfer allowance following his transfer from Head Office to Kitengela Branch by letter dated August 21, 2014. The claim was founded on Clause 7.4 of the parties' 2013-2015 CBA, which provided for a transfer allowance of Kshs.4,700 per day for up to 30 days. The Respondent refused payment, relying on its Human Resource Manual as amended by a circular of April 14, 2014, which limited transfer allowance to transfers over 50 kilometres, and contending that the CBA, signed on March 23, 2015, was not enforceable at the time of the transfer. The court disposed of the suit on pleadings, documents and written submissions. It held that the Respondent could not unilaterally alter the transfer allowance clause through a Board-reviewed circular while the CBA was under negotiation, without proposing the change during negotiations, and where the circular was silent on its effective date. The Human Resource Manual itself provided that the CBA prevails in case of conflict, and clauses denying a CBA benefit must be construed in favour of the employee. The grievant's assertion that the Managing Trustee agreed Kitengela was in a different county and allowance was payable was not denied. The court found the grievant entitled to transfer allowance under Clause 7.4 and directed payment, with costs of Kshs.50,000/- to the Claimant.

Key legal issues

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01

Applicability of the CBA 2013/2015 to a transfer before its registration

Holding

The grievant is entitled to transfer allowance under Clause 7.4 of the CBA despite the transfer preceding registration, as the CBA was effective from July 1, 2013.

Reasoning

The court accepted the Claimant's argument that although the CBA was signed on March 23, 2015, it was effective from July 1, 2013, with arrears paid from that effective date. The Respondent's unilateral changes to the Human Resource Manual were made while the CBA was under negotiation, without proposing the change in negotiations, without an effective date, and contrary to the Manual's own conflict clause preferring the CBA. The grievant's uncontroverted evidence that the Managing Trustee agreed Kitengela transfers attracted allowance was accepted.

p. 5
02

Primacy of the CBA over the Human Resource Manual

Holding

The CBA prevails over the Human Resource Manual where the two conflict.

Reasoning

Paragraph 1.2 of the Human Resource Manual expressly provides that where the Policies and Regulations conflict with the CBA in force, the latter prevails. The court held that a clause that would deny an employee a CBA benefit must be interpreted in the manner favourable to the employee. The Respondent's 50-kilometre distance threshold in the Manual could not defeat the express CBA entitlement.

p. 5

Legal principles established

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  • Where a Human Resource Manual conflicts with a CBA in force, the CBA prevails; clauses denying a CBA benefit must be interpreted in favour of the employee.
  • An employer cannot vary a CBA clause unilaterally through a Board-approved circular while the CBA is under negotiation, and a circular silent on its effective date cannot override the CBA.

Court orders

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  1. 1.Declaration that the Respondent's letter dated 4th November 2014 is inconsistent with Clause 7.4 of the registered CBA 2013/2015 and therefore null and void (as sought and upheld)
  2. 2.The grievant is entitled to transfer allowance in accordance with Clause 7.4 of the CBA, and the Respondent is directed to pay the same
  3. 3.Respondent to pay costs of Kshs.50,000/- to the Claimant

Authorities

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Legislation

  • Labour Relations ActSections 59 and 60
  • Employment ActSection 5
  • National Social Security Fund Act No. 45 of 2013
  • Employment and Labour Relations Court (Procedure) Rules, 2016Rule 21
  • Civil Procedure RulesOrder 21 Rule 1
  • Civil Procedure ActSection 1B
  • Constitution of KenyaArticles 159(2)(d) and 48
Jurisdiction invoked
Jurisdiction under the Employment and Labour Relations Court Act and Labour Relations Act over disputes between a trade union and employer under a registered CBA

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, "Kenya Union of Commercial, Food and Allied Workers v National Social Security Fund (Cause 968 of 2017) [2022] KEELRC 52 (KLR)", Case Analysis (2022). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/52/eng@2022-05-11

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