Kenya Union of Domestic, Hotels, Educational Institutions and Hospital Workers v Board of Management Namasoli Health Center (Cause 19 of 2023) [2024] KEELRC 607 (KLR)

Employment and Labour Relations Court

14 March 2024

JKJ. W. Keli

1,670 words in judgment

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AI-assisted case brief

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The bottom line

A Kenyan employment court enforced a settlement agreement as judgment, ruling financial hardship does not excuse an employer from negotiated payment terms.

What this practically means

Executive summary

The Claimant, a registered trade union, sued on behalf of four dismissed members (grievants) - Martha Shitindo, Philip Abuti, Phanice Musabi and Maurice Namayi - seeking adoption as an order of the Court of a settlement agreement dated 6th July 2021 reached after conciliation of an unfair termination trade dispute at the Kakamega labour office. The agreement, made under the applicable CBA, scheduled terminal dues (gratuity, salary arrears and house allowance) payable in a lump sum by December 2021 and monthly instalments to July 2023. The Respondent admitted the agreement but relied on financial hardship and a letter seeking renegotiation of terms. The Court found the existence and terms of the agreement undisputed and compliance only partial. Holding that a court cannot rewrite the contract between parties and that any amendment of terms is for the parties themselves, the Court adopted the agreement as judgment of the Court and allowed the amended claim. The deceased grievant's entitlement was left to be dealt with under the relevant laws since no estate administrator came on record. On costs, the Court, exercising discretion and noting costs follow the event, awarded the Claimant a fixed Kshs. 50,000/- to cover filing fees, transport and related costs. Judgment was delivered on 14th March 2024 by J.W. Keli, Judge, in open court at Kakamega.

Key legal issues

Whether the settlement agreement dated 6th July 2021 should be adopted as an order of the Court

Holding

Yes. The agreement was freely negotiated, undisputed, and only partially complied with; the Court adopted it as its judgment/order.

Reasoning

Both parties admitted the existence and terms of the agreement reached after conciliation of the unfair termination dispute. The Respondent's defence rested only on a request to renegotiate terms due to financial trouble, which does not undo a voluntarily concluded settlement. Since the Court cannot rewrite the contract between parties, the only lawful course was to enforce the agreement as made, leaving renegotiation to the parties themselves.

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Costs of the suit

Holding

The Claimant union was awarded a fixed sum of Kshs. 50,000/- instead of taxed costs.

Reasoning

Costs follow the event, but the Court exercised its discretion to fix a reasonable amount covering filing fees, transport and related expenses, taking into account that the Claimant is a union entitled to represent its members in trade disputes.

p. 5

Legal principles established

A court cannot rewrite a contract or settlement agreement voluntarily entered into by parties; it may adopt such an agreement as an order of the Court.

Court orders

1.The claim as amended on 11th October 2023 is allowed
2.The agreement between the parties dated 6th July 2021 is adopted as an Order of the Court
3.The issue of the deceased worker (Philip Abuti) to be dealt with according to the relevant laws
4.The Claimant is awarded costs of Kshs. 50,000/-

Jurisdiction invoked: Jurisdiction as an employment and labour relations court over a trade dispute and settlement agreement (provision not expressly cited in the judgment)

Key timeline

Practical implications

Frequently asked questions

Cite this brief

Caselaw, "Kenya Union of Domestic, Hotels, Educational Institutions and Hospital Workers v Board of Management Namasoli Health Center (Cause 19 of 2023) [2024] KEELRC 607 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/607/eng@2024-03-14

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