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ELRCDismissedAppeal No E030 of 2021· [2023] KEELRC 1567 (KLR)

Okiro & 33 others v Rene Super Cleaning Services & another (Appeal E030 of 2021) [2023] KEELRC 1567 (KLR)

Employment and Labour Relations Court of Kenya at Kisumu
29 June 2023
2,154 words in judgment
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The bottom line

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The Employment Court in Kisumu upheld dismissal of 34 employees' claims because their case exceeded the money limit magistrates' courts can handle in employment disputes.

What this practically means

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Executive summary

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This was a first appeal to the Employment and Labour Relations Court at Kisumu against a ruling of the Chief Magistrate's Court delivered on 30th July, 2021, striking out the Appellants' suit on the ground that the 1st Claimant and one other could not testify on behalf of the other 33 Claimants. The Appellants advanced numerous grounds, principally that no proper preliminary objection existed, that they had complied with Rule 9(1) & (2) of the ELRC (Procedure) Rules, 2016 and Order 1 Rule 13 of the Civil Procedure Rules by filing written authority to act, and that the Trial Court wrongly declined jurisdiction contrary to Gazette Notice No. 6024 of 10th June, 2018. The 2nd Respondent maintained that the suit was not a proper representative suit given the individual nature of the employment contracts and the doctrine of privity, and invoked Article 50 on fair hearing. Baari J, re-evaluating the record as required on a first appeal, found that the Claimants had in fact complied with the representative-suit requirements and that the two Claimants could testify for the others. However, the court upheld the Trial Court's dismissal on the distinct ground of want of pecuniary jurisdiction: the delegated jurisdiction under Gazette Notice No. 6024 extended only to employment disputes where the employee's gross monthly pay does not exceed Kshs. 80,000, whereas the claims ranged between Kshs. 120,000 and Kshs. 179,000. The appeal was accordingly dismissed with no orders as to costs.

Key legal issues

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01

Whether the two Claimants could testify on behalf of the other 32 Claimants in a representative capacity

Holding

The Claimants complied with Rule 9(1) & (2) of the ELRC (Procedure) Rules, 2016 and Order 1 Rule 13 of the Civil Procedure Rules by filing written authority to act, so the objection that two Claimants could not testify for the others failed

Reasoning

The court found it undisputed that the cause of action was the same for all 34 Claimants and that the authority to act granted to Jack Odhiambo Okiro and Nashon Otieno was filed together with the statement of claim. Compliance with the written-authority requirements of Rule 9(1) & (2) ELRC Rules and Order 1 Rule 13 CPR meant the assertion that the two could not testify for the 32 others could not stand.

p. 5
02

Whether the Trial Magistrate's Court had pecuniary jurisdiction over the Claimants' claims

Holding

The Trial Court had no jurisdiction because the claims of between Kshs. 120,000 and Kshs. 179,000 per Claimant exceeded the delegated pecuniary limit of Kshs. 80,000 gross monthly pay under Gazette Notice No. 6024 of 10th June, 2018

Reasoning

Jurisdiction is everything; without it a court must down its tools. The Gazette Notice conferred delegated jurisdiction on Senior Resident Magistrates and above only over employment disputes where the employee's gross monthly pay does not exceed Kshs. 80,000. The claims ranged between Kshs. 120,000 and Kshs. 179,000, which fell outside the delegated pecuniary jurisdiction, so the dismissal of the suit was properly grounded on want of jurisdiction.

p. 5

Legal principles established

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  • On a first appeal, the appellate court's role is to re-evaluate, re-assess and re-analyse the record and determine whether the conclusions reached by the Trial Court are to stand
  • Where a suit is instituted in a representative capacity, a letter of authority signed by all the other parties must be filed with the statement of claim under Rule 9 of the ELRC (Procedure) Rules, 2016 and Order 1 Rule 13 of the Civil Procedure Rules
  • Magistrates' Courts exercising delegated employment jurisdiction under Gazette Notice No. 6024 of 10th June, 2018 are limited to disputes where the employee's gross monthly pay does not exceed KShs. 80,000

Court orders

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  1. 1.The appeal is dismissed
  2. 2.No orders as to costs

Authorities

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Legislation

  • Employment Act
  • Employment and Labour Relations Court (Procedure) RulesRule 9(1) & (2)
  • Civil Procedure RulesOrder 1 Rule 13(1) & (2)
  • Gazette Notice No. 6024 of 10th June, 2018
  • Employment and Labour Relations Court ActSection 29(3) and (4)(b)
  • Labour Relations Act
  • Constitution of KenyaArticle 50

Cases cited (5)

  • Mukisa Biscuit Ltd v West End Distributors Ltd
    [1969] E.A 696
  • Millicent Wairimu & Another v Johnson Nyaga Maina & 2 Others
    [2017] eKLR
  • Savings & Loan (K) Limited v Kanyenje Karangaita Gakombe & Another
    [2015] eKLR
  • Gitobu Imanyara & 2 others v Attorney General
    [2016] eKLR
  • John Kariuki & 347 Others v John Mungai Njoroge & 8 Others
    Nakuru HCCC No. 152 of 2003 (unreported)
On appeal from
Chief Magistrate's Court at Kisumu (Employment and Labour relations)
Employment Case Number 3 of 2018
Jurisdiction invoked
First appeal to the Employment and Labour Relations Court pursuant to the Employment and Labour Relations Court Act, 2011 (section 29(3) and (4)(b) delegation under Gazette Notice No. 6024 of 10th June, 2018)

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, "Okiro & 33 others v Rene Super Cleaning Services & another (Appeal E030 of 2021) [2023] KEELRC 1567 (KLR)", Case Analysis (2023). Appeal No E030 of 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1567/eng@2023-06-29

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