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ELRCStruck OutELRC Cause (Nyeri), Claimant's Amended Memorandum of Claim of 30th May 2022· [2023] KEELRC 1271 (KLR)

Kenya Union of Domestic, Hotels, Educational Institution & Hospital Workers v Murang’a University of Technology (Cause E057 of 2021) [2023] KEELRC 1271 (KLR)

Employment and Labour Relations Court
19 May 2023
3,253 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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The Employment Court struck out a union's claim for terminal benefits because it was filed about eight years after the claims arose, far past Kenya's three-year employment claim deadline.

What this practically means

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Executive summary

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The claimant union sued on behalf of 45 grievants formerly employed by Murang'a College of Technology (MCT), which transitioned into the respondent university under Legal Notice No. 129 of 2011, with new contracts issued in 2013. The union sought terminal benefits (service gratuity, severance pay, salary in lieu of notice), interest from 2013, damages for delay, and costs, contending that the CBA rights accrued at MCT were transferred to the university and became payable when the grievants' new employment ended. The respondent defended the suit as time barred under section 90 of the Employment Act, argued the CBA and MCT schemes of service ended on transition, denied any redundancy or termination (hence no severance or notice pay), invoked the doctrine of election against the grievants who signed new contracts, and submitted that one grievant, John Munene, was res judicata having litigated in Cause No. E015 of 2020. The court framed three issues: res judicata, limitation, and reliefs. It held Munene's claim res judicata, being determined by Marete J's unappealed judgment of 28th September 2022. On limitation, it found the claims accrued in 2013 and the suit, filed on 1st December 2021, was about eight years out of time; the claimant's assertion that gratuity was payable only at the end of the university employment was unsupported and an afterthought. Section 90 being mandatory, the court lacked jurisdiction, sympathetically struck out the suit, and declined to award the respondent costs since the suit was not determined on merits.

Key legal issues

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01

Whether John Munene's claim is res judicata

Holding

Yes - his claim for gratuity and dues was determined in Cause No. E015 of 2020 by Marete J and that judgment was not appealed against

Reasoning

John Munene, the sole employee who did not transition, had already sued in ELRC Cause No. E015 of 2020 claiming unfair termination compensation and service gratuity for 32 years. That suit was determined by a judgment of Marete J dated 28th September 2022 and was never appealed. His claim in the present suit for 31 years' gratuity and termination dues was directly and substantially in issue, between related parties, and conclusively determined by a competent court, hence res judicata.

p. 5
02

Whether the suit is time barred under section 90 of the Employment Act

Holding

Yes - the claims accrued in 2013 upon transition and the suit filed on 1st December 2021 was about 8 years late

Reasoning

Section 90 of the Employment Act mandates that claims arising out of the Act or a contract of service be filed within three years. The grievants sought benefits that accrued in 2013 when MCT transitioned to a university. The suit was filed on 1st December 2021, roughly 8 years later. The claimant's argument that gratuity became payable only when the new employment ended had no evidentiary support and was an afterthought. Being statute-barred, the suit robbed the court of jurisdiction.

p. 6
03

Whether the reliefs sought should be granted

Holding

Not determined - the suit was struck out for being time barred before merits could be reached

Reasoning

Having found the suit time barred and the court deprived of jurisdiction, the court declined to determine entitlement to gratuity, severance pay, salary in lieu of notice or damages. It observed there was no evidence of when the transferred liabilities became payable and that the union ought to have negotiated for the benefits at transition, since courts cannot rewrite contracts for parties.

p. 6

Legal principles established

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  • Claims based on contract of employment must be instituted within three years under section 90 of the Employment Act, and limitation cannot be extended in contractual matters
  • Where a suit is time barred, the court lacks jurisdiction to determine it
  • Res judicata elements must be satisfied conjunctively

Court orders

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  1. 1.The suit is struck out for being time barred
  2. 2.Each party to bear own costs (claimant not condemned to costs since suit not determined on merits)

Authorities

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Legislation

  • Employment Actsection 90
  • Limitation of Actions Actsection 4(1)
  • Labour Relations Actsection 59
  • Legal Notice No. 129 of 2011clause 4 (transfer of liabilities)
  • ELRC Procedure RulesRule 28(3)

Cases cited (12)

  • Ephraim Gachigua Mwangi v Teachers Service Commission of Board of Management, Thogoto Teachers College
    (2018) eKLR
  • John Kiiru Njiiri v University of Nairobi
    (2021) eKLR
  • Sammy Mbuvi v Sai Office Suppliers Limited
    (2020) eKLR
  • Kenya Broadcasting Corporation v Geoffrey Wakio
    (2019) eKLR
  • United Australia Ltd v Barclays Bank Ltd
    (1940) 4 ALL ER 20 at 37-8
  • C.K Bett Traders Limited & 2 others v Kennedy Mwangi & Another
    High Court Kajiado Civil Appeal No.7 of 2020
  • Independent Electoral and Boundaries Commission v Maina Kiai & 5 others
    (2017) eKLR
  • Beatrice Kahai Adagala v The Postal Corporation of Kenya
    [2015] eKLR
  • Divecon Limited vs Samani
    [1995-1998] 1 EA p. 48
  • Dedan Kimathi University (case cited by claimant)
  • Technical University of Mombasa (case cited by claimant)
  • Cause No. E015 of 2020 (John Munene v the University)
    judgment of Marete J dated 28th September 2022
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and Labour Relations Act (ELRC), suit on terminal benefits arising from a contract of service

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, "Kenya Union of Domestic, Hotels, Educational Institution & Hospital Workers v Murang’a University of Technology (Cause E057 of 2021) [2023] KEELRC 1271 (KLR)", Case Analysis (2023). ELRC Cause (Nyeri), Claimant's Amended Memorandum of Claim of 30th May 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1271/eng@2023-05-19

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