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ELRCPartially AllowedNot stated in judgment· [2023] KEELRC 2568 (KLR)

Amalgameted Union of Kenya Metal Workers v Pelican Signs Limited (Cause 317 of 2019) [2023] KEELRC 2568 (KLR)

Employment and Labour Relations Court
5 October 2023
MOM. Onyango
2,226 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~9 min to read original · ~4 min brief

The bottom line

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An Eldoret court ordered Pelican Signs to pay 27 dismissed workers over Ksh 11 million in terminal dues, enforcing the union's collective bargaining agreement.

What this practically means

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Executive summary

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The Claimant, a trade union with a recognition agreement with the Respondent since 2002, sued on behalf of 27 grievant employees summarily dismissed on 15th May 2019 and allegedly locked out after demanding unpaid April 2019 salaries. The Claimant alleged the lock-out and dismissals breached section 76 of the Labour Relations Act, Article 50 of the Constitution and sections 41 and 43 of the Employment Act, and sought reinstatement or, alternatively, terminal dues and twelve months' compensation. The Respondent justified the dismissals as a lawful sanction for persistent refusal to complete daily work reports after show-cause and disciplinary hearings, and attributed the salary delay to a bank overdrawal. The court directed conciliation before L.W. Kariuki of the Federation of Kenya Employers, where two agreements were signed: the first providing notice per the CBA and outstanding leave; the second reducing the dismissals to normal termination with terminal dues to be negotiated. A partial consent declared the termination unfair. On unresolved quantum, the court directed written submissions. The parties' tabulations coincided on notice, pro-rata leave and leave travelling allowance; the Respondent omitted gratuity. Applying CBA Clauses 17, 20 and 22, including gratuity at 16 days' consolidated wages per completed year of service, the court entered judgment for the Claimant on behalf of the 27 grievants in the total sum of Ksh. 11,107,652.87, with each party bearing its own costs. The claim succeeded in part: monetary relief was granted but reinstatement and 12 months' compensation were not awarded.

Key legal issues

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01

Enforcement of conciliation consents and CBA terminal benefits

Holding

The court computed terminal dues in accordance with the two consents signed before the conciliator and CBA Clauses 17, 20 and 22, awarding notice, pro-rata leave, leave travelling allowance and gratuity.

Reasoning

The parties signed two agreements before L.W. Kariuki of the Federation of Kenya Employers: one providing for notice per CBA and outstanding leave, the other reducing the dismissal to normal termination with terminal dues to be negotiated. A partial consent declared the termination unfair. The parties' tabulations agreed on notice, leave and leave travelling allowance; only gratuity differed, the Respondent having omitted it. Applying CBA Clause 22 (gratuity of 16 days' wages per completed year), the court adopted the Claimant's tabulation and entered judgment for the total sum.

p. 6

Legal principles established

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  • Where parties record consents in conciliation reducing a summary dismissal to normal termination and agreeing notice and leave entitlements, the court enforces terminal dues on that agreed basis.
  • Under the applicable CBA, terminated employees are entitled to notice per CBA, outstanding leave, and gratuity at 16 days consolidated wages per completed year of service.

Court orders

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  1. 1.Judgment entered for the Claimant on behalf of the 27 Grievants in the total sum of Ksh. 11,107,652.87 as per the tabulation
  2. 2.Each party to bear its own costs

Authorities

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Legislation

  • Labour Relations Actsection 76
  • Employment Actsections 41, 43
  • Constitution of KenyaArticle 50
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (claim founded on Employment Act 2007, Labour Relations Act 2007 and the CBA)

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, "Amalgameted Union of Kenya Metal Workers v Pelican Signs Limited (Cause 317 of 2019) [2023] KEELRC 2568 (KLR)", Case Analysis (2023). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2568/eng@2023-10-05

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