Okanya v Woodrow Communications Limited (Employment and Labour Relations Cause E825 of 2022) [2023] KEELRC 2674 (KLR)
The bottom line
#The Employment Court stayed an employee's unfair termination claim because his contract required arbitration, confirming Kenyan employers can enforce arbitration clauses early.
What this practically means
#Executive summary
#Key legal issues
#Timeliness of the application under section 6(1) of the Arbitration Act
The application was filed at the time of entering appearance and thus met the statutory timing requirement
Section 6(1) requires an application not later than the time of entering appearance or before taking any step in the proceedings. The court found that the Respondent filed the application at the time of entering appearance, and the Claimant did not contest validity or timeliness of the arbitration clause. The court relied on Mt. Kenya University v Step Up Holding and Adrec Limited v Nation Media Group on timing, and Eunice Soko Mlagui on the conditions prescribed by section 6.
Whether the dispute falls within the scope of the arbitration agreement and whether referral would defeat justice
The dispute arising out of the employment contract falls within the arbitration clause, and the Claimant's concern about losing declaratory relief was not a ground to refuse referral
The Claimant argued the claim also arose from breach of labour laws and that an arbitrator could not grant declarations of unfair termination. The court held the Claimant did not challenge the validity of the arbitration clause and objected only on the basis of being denied declaratory orders, which the court did not accept as showing the process would frustrate or deny him justice. Article 159(2)(c) promoting alternative dispute resolution supported referral.
Legal principles established
#- A court before which proceedings are brought in a matter subject to an arbitration agreement must stay proceedings and refer parties to arbitration if a timely application is made and no statutory exception applies
- An application under section 6 of the Arbitration Act made at the time of entering appearance satisfies the statutory timing requirement
Court orders
#- 1.The proceedings (claim) herein are stayed
- 2.The subject matter of the claim is referred to arbitration for hearing and determination
- 3.The parties are given 90 days to agree on an arbitrator and proceed with the arbitration and make a report to the court on February 7, 2024
- 4.Costs of the application to be in the cause
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment disputes; stay and referral governed by section 6 of the Arbitration Act, No. 4 of 1995, read with Article 159(2)(c) of the Constitution
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (1)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- Alubala v Zhongiao Third Highway Engineering EA Company limited (Cause E895 of 2023) [2024] KEELRC 2072 (KLR)[2024] KEELRC 2072 (KLR)31 Jul 2024
Cite this brief
#Cite this brief
Caselaw, "Okanya v Woodrow Communications Limited (Employment and Labour Relations Cause E825 of 2022) [2023] KEELRC 2674 (KLR)", Case Analysis (2023). Not stated in judgment extract (Memorandum of Claim dated November 10, 2022; Notice of Motion dated December 20, 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2674/eng@2023-10-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.