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ELRCAllowedPetition dated 5th May 2023· [2024] KEELRC 270 (KLR)

Universities Academic Staff Union (UASU)) v Moi University (Employment and Labour Relations Petition E087 of 2023) [2024] KEELRC 270 (KLR)

Employment and Labour Relations Court
13 February 2024
AMAnna Ngibuini Mwaure
1,637 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan employer that deducts union dues but fails to remit them must pay the union from its own accounts, plus costs and interest.

What this practically means

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Executive summary

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The Petitioner, a trade union with a Recognition Agreement and CBAs concluded with the Respondent through IPUCCF, petitioned the Employment and Labour Relations Court claiming that the Respondent deducted union dues and agency fees from its members but failed to remit them contrary to sections 48, 49 and 50 of the Labour Relations Act and Articles 41, 47 and 48 of the Constitution. The Petitioner quantified the arrears at Kshs 25,017,316.35 for the periods August to December 2021, March, May and December 2022 and January to March 2023. The Respondent filed no pleading in opposition and at some point indicated readiness to settle, later claiming to be waiting for exchequer funds. The court set out the statutory framework, including section 50(1) requiring remittance within ten days and section 50(8) prohibiting an employer from deducting money and not paying it to the union, and noted that section 50(10) makes breach a mandatory offence. Relying on BIFU v Maisha Bora Sacco, the court applied the principle that an employer who has deducted but failed to remit dues must pay them from its own accounts. Holding that the withheld monies were illegally retained, judgment was entered for Kshs 25,017,316, with a continuing order compelling remittance of dues and agency fees going forward, plus costs and interest from the date of judgment until payment in full.

Key legal issues

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01

Duty to remit deducted union dues and agency fees

Holding

The Respondent, having deducted union dues and agency fees, was under a mandatory statutory duty under sections 48, 49 and 50 of the Labour Relations Act to remit them to the Petitioner within ten days, and its failure was illegal and an offence under section 50(10).

Reasoning

Sections 48 and 49 empower the Minister to order employers to deduct union dues and agency fees; section 50(1) requires remittance within ten days and section 50(8) prohibits deducting money and not paying it to the union. Section 50(10) makes breach a mandatory offence. The Respondent filed no opposing pleadings and its explanations (waiting for exchequer funds) were rejected since the money was legally due to employees and withheld illegally.

p. 3
02

Uncontested claim liability

Holding

With no pleading filed in opposition and an admission of willingness to settle, judgment was entered for the full claimed amount.

Reasoning

The Respondent filed no pleadings and at some point admitted readiness to settle. Its explanation that it was waiting for exchequer funds did not excuse withholding monies deducted from employees. The court therefore held the petition merited and entered judgment for Kshs 25,017,316.35 with a forward-looking order of continued remittance.

p. 4

Legal principles established

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  • An employer who deducts union dues and fails to remit them to the trade union must remit such dues from its own accounts, as the amount deducted is legally due to the union.

Court orders

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  1. 1.Judgment entered in favour of the petitioner for Kshs 25,017,316.35
  2. 2.An order compelling the respondent to remit monetary dues and agency fees deducted from all members of the union in accordance with section 50 of the Labour Relations Act going forward
  3. 3.Respondent to pay costs of the suit and interest on the judgment sum from the date of judgment until payment in full

Authorities

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Legislation

  • Labour Relations Actsection 48(1),(2),(3)
  • Labour Relations Actsection 49
  • Labour Relations Actsection 50(1),(8),(10)
  • Labour Relations Actsection 82
  • Constitution of Kenya, 2010Articles 41(2)(4), 47, 48
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (3)

  • Said Ndege v Steel Makers Ltd
    [2014] eKLR
  • Kenya Concrete, Structural, Ceramic Tiles Wood Plys and Interior Design Workers Union v Wanxin Investments Limited
    [2021] eKLR
  • Banking, Insurance & Finance Union (Kenya) v Maisha Bora Sacco Society Limited
    [2016] eKLR
Jurisdiction invoked
Article 41, 47 and 48 of the Constitution and the Labour Relations Act, 2007

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, "Universities Academic Staff Union (UASU)) v Moi University (Employment and Labour Relations Petition E087 of 2023) [2024] KEELRC 270 (KLR)", Case Analysis (2024). Petition dated 5th May 2023. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/270/eng@2024-02-13

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