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ELRCPartially AllowedMemorandum of Claim dated 12th February, 2019 (not otherwise stated in the judgment)· [2024] KEELRC 1622 (KLR)

Kenya Plantation & Agricultural Workers Union v Solio Ranch Limited (Cause 7A of 2019) [2024] KEELRC 1622 (KLR)

Employment and Labour Relations Court
26 June 2024
2,711 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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A registered trade union filed a memorandum of claim on 13th February 2019 against an incorporated limited liability company, seeking a declaration that the respondent's conduct amounted to unfair labour practice and an order compelling the respondent to execute a recognition agreement within 14 days. The claimant alleged that it recruited 62 of the respondent's employees on 8th March 2014, who signed Form S authorising union dues deductions; that it served a draft recognition agreement on 30th April 2018 with reminders on 7th August 2018 and 11th January 2019; and that the respondent refused to engage or execute. The respondent denied the named persons were its employees or a simple majority of its workforce, pleaded absence of a demand notice, and raised prematurity on exhaustion grounds. The parties consented to disposal by written submissions. The court identified two issues: whether the claimant proved its cause on a balance of probabilities, and costs. Holding that Sections 10 and 74 of the Employment Act obligate employers to keep employment records, the court shifted the evidential burden to the respondent, which failed to avail records. The stamped December 2018 union dues deductions list further showed the respondent had treated the 62 as its employees. The court rejected the exhaustion argument, holding Section 74 of the Labour Relations Act permits direct filing under a certificate of urgency. It found unfair labour practice under Article 41 and allowed the claim, ordering execution of a recognition agreement within 30 days (varying the 14 days sought) and awarding costs to the claimant.

Key legal issues

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01

Whether the claimant proved that the 62 named persons were employees of the respondent constituting a simple majority, entitling it to a recognition agreement under Section 54 of the Labour Relations Act

Holding

Yes. The burden shifted to the respondent, which failed to produce its employment records; the stamped union dues deductions list for December 2018 further corroborated the claim.

Reasoning

Sections 10 and 74 of the Employment Act obligate employers to keep employment records, so the respondent was best placed to disprove the claim. The respondent failed to avail such records while simultaneously alleging the 62 persons were not employees. The stamped December 2018 deductions list showed the respondent had treated them as unionisable employees and remitted dues, only stopping in January 2019 without explanation.

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02

Whether the respondent's refusal to execute a recognition agreement amounts to unfair labour practice under Article 41 of the Constitution

Holding

Yes. The respondent deliberately, unreasonably and unlawfully refused to engage and execute the recognition agreement.

Reasoning

The claimant served the recognition agreement and reminders, and correspondences were sent to the respondent's own postal address (P.O BOX 2, Naro Moru) as reflected in its rubber stamp. The respondent's failure to respond or execute, despite engaging in settlement discussions after the cause was filed, constituted unfair labour practice under Article 41 and denied the employees the benefits of a CBA.

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03

Whether the cause was premature for failure to exhaust Sections 62 and 74 of the Labour Relations Act

Holding

No. Section 74 of the Act allows a trade union to approach the court directly as the claimant did.

Reasoning

Counsel for the respondent argued violation of the doctrine of exhaustion, relying on authority that alternative dispute resolution mechanisms must be exhausted. The court held that Section 74 expressly permits a trade union to file such a cause in court under a certificate of urgency, which the claimant did, so there was no violation of the exhaustion doctrine.

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Legal principles established

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  • Once a claimant alleges that named persons are employees of an employer, the burden shifts to the employer, who is statutorily obliged to keep employment records, to dislodge that claim.
  • A trade union filing a cause under Section 74 of the Labour Relations Act does not violate the doctrine of exhaustion.

Court orders

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  1. 1.A declaration be and is hereby issued that by failing, refusing, and or neglecting to execute a recognition agreement with the claimant, the respondent has engaged in unfair labour practices.
  2. 2.An order be and is hereby issued directing the respondent to engage and execute a recognition agreement with the claimant within 30 days of this judgment.
  3. 3.Costs of the cause to the claimant.

Authorities

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Legislation

  • Labour Relations ActSection 54(1)
  • Labour Relations ActSection 54
  • Labour Relations ActSection 62
  • Labour Relations ActSection 74
  • Employment ActSections 10 & 74
  • Evidence ActSections 107, 108 & 109
  • Constitution of KenyaArticle 41

Cases cited (4)

  • Kenya Long Distance Truck Drivers & Allied Workers Union V Ms. Kyoga Hauliers Limited
    (2013) eKLR
  • Charterhouse Bank Limited (Under statutory management) V Frank N. Kamau
    (2016) eKLR
  • Daniel Kenga Katana & 4 Others V Dzitu Toto Bokole & 3 Others
    (2022) eKLR
  • Geoffrey Muthiga Kabiru & 2 Others V Samuel Munga Henry & 1756 Others
    (2015) eKLR
Jurisdiction invoked
Sections 54 and 74 of the Labour Relations Act; Article 41 of the Constitution

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, "Kenya Plantation & Agricultural Workers Union v Solio Ranch Limited (Cause 7A of 2019) [2024] KEELRC 1622 (KLR)", Case Analysis (2024). Memorandum of Claim dated 12th February, 2019 (not otherwise stated in the judgment). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1622/eng@2024-06-26

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