Banking Insurance and Finance Union v KCB Bank Kenya Limited (Cause 1615 of 2018) [2024] KEELRC 814 (KLR)
The bottom line
#Kenya's Employment Court dismissed a union's challenge to KCB's redundancy, ruling the union should have first used grievance and conciliation procedures before going to court.
What this practically means
#Executive summary
#Key legal issues
#Whether the Respondent complied with section 40(1) of the Employment Act and Clause A7 of the CBA in the redundancy
The Respondent complied: it notified the union and the Provincial Labour Officer one month in advance, issued individual notices, and provided terminal benefits per the CBA
The court found the notification letters dated 27 November 2018 satisfied section 40(1)(a) and Clause A7, and that individual notices with terminal benefits went beyond statutory requirements. The redundancy was based on valid operational reasons (outsourcing the Mailing Services function). The Claimant, which bore the burden of proof, adduced no evidence of non-compliance.
Whether the 'last in first out' selection criterion applied
It did not apply because the entire Mailing Services function, in which the three Grievants alone worked, was outsourced
RW1 testified that the 10 retained messengers worked in specialised areas (cash management, CEO's and legal offices) for which they had been trained, whereas the three Grievants served only in the outsourced Central Mailing Services. Clause A7(e) and section 40(1)(c) apply to selection within a particular class of employees affected; here the whole class in the affected function went.
Whether the Claimant was entitled to the reliefs sought
No; the claim was dismissed with each party bearing its own costs
The Claimant called no witness and adduced no evidence of discrimination in seniority, skill, ability or reliability. It also bypassed the grievance procedure in the recognition agreement and conciliation under section 74 of the Labour Relations Act, filing suit prematurely without even responding to the redundancy notice.
Legal principles established
#- A union challenging a redundancy must first engage the employer through the grievance/conciliation machinery before rushing to court; failure to seek explanation of selection criteria undermines its challenge
- Where the entire function or department occupied by the affected employees is outsourced or abolished, the 'last in first out' selection criterion in section 40(1)(c) is not applicable
Court orders
#- 1.The claim is dismissed
- 2.Each party shall bear its own costs of the claim
- Jurisdiction invoked
- Section 74 of the Labour Relations Act (referral of disputes to the Industrial Court)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Banking Insurance and Finance Union v KCB Bank Kenya Limited (Cause 1615 of 2018) [2024] KEELRC 814 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/814/eng@2024-04-12
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.