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ELRCAllowedCause pending at ELRC Nakuru (not stated in ruling)· [2024] KEELRC 2130 (KLR)

Kenya Building and Construction, Timber and Furniture Industries Employees Union v Timsales Limited (Cause E029, E030 & E031 of 2021 (Consolidated)) [2024] KEELRC 2130 (KLR)

Employment and Labour Relations Court
31 July 2024
4,416 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~18 min to read original · ~4 min brief

The bottom line

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The Employment and Labour Relations Court paused enforcement of a Kshs. 148 million award, but only if the employer deposits the full amount in a joint interest-earning account within 90 days.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court at Nakuru, delivered by Hon. Lady Justice Hellen Wasilwa on 31 July 2024, determines the Respondent/Applicant's Notice of Motion dated 4 April 2024 seeking stay of execution of the judgment of 17 January 2023 and subsequent rulings on computation of the decretal figures, pending the hearing of the Applicant's appeal to the Court of Appeal. The judgment had awarded grievants notice pay, leave pay, gratuity under clause 19 of the CBA, days worked, six months' compensation, costs, interest and certificates of service, with the decretal sum exceeding Kshs. 148 million. The Applicant, a company employing about 1,000 workers, argued it would suffer substantial loss if execution proceeded before the appeal, that grievants' addresses were unknown making repayment impracticable, and offered a bank guarantee of Kshs. 10 million. The Claimant/Respondent opposed, contending there was no demonstrated substantial loss, no imminent threat of execution, delay in filing, and that the proposed security was inadequate given the decree size. Both parties filed written submissions. Applying Order 42 rule 6(2) of the Civil Procedure Rules, the court found the application filed timeously given the post-judgment computation proceedings, found substantial loss demonstrated, and noted the Applicant's willingness to abide by conditions. The court allowed the stay on condition that the entire decretal sum be deposited in an interest-earning account in the joint names of counsel on record within 90 days, failing which execution may proceed. No express costs order appears in the final disposition.

Key legal issues

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Whether the applicant satisfied the conditions in Order 42 rule 6(2) for stay of execution pending appeal

Holding

The court found the conditions satisfied: the application was filed timeously given the post-judgment computation proceedings, substantial loss was demonstrated, and the applicant was willing to provide security by deposit of the decretal sum

Reasoning

The court applied the three cumulative requirements of Order 42 rule 6(2): substantial loss, application without unreasonable delay, and security. It accepted that the appeal process and the computation of figures through Labour Office reports explained the timing of the application, and noted the applicant's willingness to abide by conditions of stay, including deposit of the entire decretal sum in a joint interest-earning account.

p. 8

Legal principles established

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  • Stay of execution under Order 42 rule 6(2) requires substantial loss, reasonable delay and security; where the applicant offers to abide by conditions and delay is explained, conditional stay may be granted on security terms set by the court

Court orders

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  1. 1.Stay of execution of the judgment delivered on 17/01/2023 and subsequent rulings granted on condition that the entire decretal sum be deposited in an interest earning account held in joint names of counsels on record within 90 days
  2. 2.In default of such deposit, execution may proceed
Jurisdiction invoked
Article 50(7) of the Constitution of Kenya; Sections 12(3)(i) and 17 of the Employment and Labour Relations Court Act; Rule 17 of the ELRC Procedure Rules; Order 42 of the Civil Procedure Rules

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 Building and Construction, Timber and Furniture Industries Employees Union v Timsales Limited (Cause E029, E030 & E031 of 2021 (Consolidated)) [2024] KEELRC 2130 (KLR)", Case Analysis (2024). Cause pending at ELRC Nakuru (not stated in ruling). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2130/eng@2024-07-31

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