Banking Insurance & Finance Union v Rafiki Microfinance Bank (Cause E733 of 2022) [2023] KEELRC 970 (KLR)
The bottom line
#The Employment Court dismissed a union's claim for unremitted dues because employees had validly resigned, freeing the employer from deducting.
What this practically means
#Executive summary
#Key legal issues
#Whether the number of resignations was 40 (claimant) or 97 (respondent)
The claimant received copies of 40 resignations while the respondent held copies of 80 letters of resignation; the discrepancy arose because the respondent did not forward copies of resignation notices to the union as required by section 48(8), but the employees had in fact resigned
Section 48(6) bars deduction from an employee who has notified the employer of resignation; section 48(8) obliges the employer to forward a copy of such notice to the union. The respondent failed to forward copies, explaining why the claimant only received 40. The discrepancy did not alter the fact of resignation, so the respondent could not deduct dues from those employees.
Whether the claimant is entitled to the orders sought
No. The respondent was proved to have deducted and remitted all union dues it was legally obligated to remit, so the claim failed and was dismissed in its entirety
The court accepted the respondent's evidence that it continued to deduct and remit dues for remaining members, including one member, until October 2016. Given the valid resignations, the respondent was not obligated to deduct dues from the departed members. The claimant thus failed to discharge the burden of proving its claim and was not entitled to any prayer in the claim or notice of motion.
Legal principles established
#- Under section 48(6) of the Labour Relations Act an employer may not deduct union dues from an employee who has notified the employer in writing of resignation from the union, notwithstanding a discrepancy in resignation notices forwarded to the union
Court orders
#- 1.The claim is dismissed in its entirety
- 2.No orders for costs (each party to bear own costs)
- Jurisdiction invoked
- Labour Relations Act, section 48 (trade dispute over union dues, Employment and Labour Relations Court jurisdiction)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Banking Insurance & Finance Union v Rafiki Microfinance Bank (Cause E733 of 2022) [2023] KEELRC 970 (KLR)", Case Analysis (2023). Memorandum of claim dated 12th October 2022 (as amended 6th December 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/970/eng@2023-04-25
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.