Kenya National Union of Nurses [KNUN] v National Industrial Bank (NIC) & 5 others (Cause 387 of 2018) [2023] KEELRC 796 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Mandatory remittance of trade union dues to the Minister's designated account
Remittance of union dues into any account other than the Minister's designated account breaches sections 48 and 50 of the LRA, and the monies so held must be remitted to the claimant's authorised account
Section 48(2) directs that dues be paid into a specified account of the trade union; section 50(1) prohibits an employer from deducting money and not paying it into the designated account or paying into another account; section 50(9) and (10) criminalise requesting or using such deductions for other purposes. Given the claimant's recognition, diversion of dues into account No.xxx was a serious breach done in collusion with the 3rd to 6th respondents.
Effect of non-attendance by the 2nd to 6th respondents
The 2nd to 6th respondents' non-attendance left the claimant's evidence unchallenged and it was accepted
The 3rd to 6th respondents had knowledge of the proceedings as the account holders; their failure to attend denied the court crucial material evidence and left the claims against them unchallenged, so the claimant's word was taken as correct against them.
Liability of the 1st respondent (bank) and its obligation to render an account
The 1st respondent, though alleging due diligence, ought to have filed the account statements when called upon; it was ordered to produce them rather than bear liability outright
Even where a bank opens an account on customers' instructions, once served and called upon to account it should in good faith file the statement of the account. The court directed it to produce the statements to enable the claimant identify employers and pursue recovery and investigations under section 50(10).
Legal principles established
#- Where an employer has a Recognition Agreement with a trade union and the Minister has gazetted the authorised account, remitting union dues to any other account is a serious breach of sections 48 and 50 of the LRA
- Where respondents served with proceedings do not attend or challenge the claim, the claimant's uncontroverted evidence stands
Court orders
#- 1.All monies held in account No.xxx held by the 1st respondent from the date the account was opened to date shall be removed and remitted to the claimant through the Kenya National Union of Nurses Barclays Bank of Kenya Queensway Branch Nairobi account
- 2.The 1st respondent is directed to remit to the claimant bank statement(s) with regard to account No.xxx from the date the account was opened to date to allow the claimant address pursuant to section 50(10) of the Labour Relations Act, 2007
- 3.Based on the bank statements, the claimant shall be at liberty to pursue recovery of any monies remitted to account No.xxx and removed by the 3rd to 6th respondents relating to trade union dues
- 4.Costs of the proceedings for the claimant shall be met by the 3rd, 4th, 5th and 6th respondents jointly and or individually
- 5.The 1st respondent shall bear its own costs
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over trade union dues disputes under the Labour Relations Act, 2007 and Article 41 of the Constitution
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya National Union of Nurses [KNUN] v National Industrial Bank (NIC) & 5 others (Cause 387 of 2018) [2023] KEELRC 796 (KLR)", Case Analysis (2023). Cause No 387 of 2018. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/796/eng@2023-03-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.