Kenya Union of Domestic, Hotels, Educational, Institution Hospitals and Allied Workers v Nakuru War Memorial Hospital (Employment and Labour Relations Cause 470 of 2016) [2023] KEELRC 3482 (KLR)
The bottom line
#A Kenyan court ruled hospital staff unfairly declared redundant must receive both terminal benefits and severance pay under their Collective Bargaining Agreement.
What this practically means
#Executive summary
#Key legal issues
#Whether the redundancy was fair
The redundancy was unfair because the notice fell short of the 30 days required by law
The union was served with the notice of redundancy on 4/11/2016 to run for 30 days, ending 4/12/2016, yet the members were declared redundant on 9th December 2016. The notice period was therefore shorter than the 30 days envisaged in section 40(1)(a) of the Employment Act and clause 11 of the CBA, rendering the redundancy unfair.
Whether grievants are entitled to both terminal benefits under clause 10 and severance pay under clause 11 of the CBA
They are entitled to both; dues to be calculated on both clauses with the figure agreed by the parties for adoption by the court
Clause 10 entitles every employee leaving the hospital for any reason other than gross misconduct to 30 days' benefits per completed year of service. Clause 11(iii) entitles redundant employees to all terminal benefits under the agreement plus severance pay. Since the grievants' departure was not based on gross misconduct, both clauses apply, and the Respondent's argument that only severance pay is payable was rejected.
Legal principles established
#- A redundancy notice falling short of the 30 days envisaged in law renders the redundancy unfair
- Where clause 11(iii) of a CBA provides that redundant employees are entitled to all terminal benefits and also severance pay, both are payable
Court orders
#- 1.A finding that the grievants are entitled to their terminal benefits provided for under clause 10 of the CBA as their departure was not based on gross misconduct
- 2.A finding that the grievants are also entitled to their redundancy package under clause 11 of the CBA
- 3.That the dues of the grievants shall be calculated based on clauses 10 and 11 of the CBA and a figure agreed upon by the parties for adoption by the court as part of the judgment
- 4.Costs to the claimant
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act and Labour Relations Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Union of Domestic, Hotels, Educational, Institution Hospitals and Allied Workers v Nakuru War Memorial Hospital (Employment and Labour Relations Cause 470 of 2016) [2023] KEELRC 3482 (KLR)", Case Analysis (2023). ELRC Cause (Memorandum of Claim dated 28th November 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3482/eng@2023-12-11
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.