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ELRCStruck OutNot stated in judgment· [2024] KEELRC 2215 (KLR)

Nabwayo v SBM Bank (Kenya) Limited & 3 others (Cause 986 of 2023) [2024] KEELRC 2215 (KLR)

Employment and Labour Relations Court of Kenya
19 September 2024
460 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court struck out a claim entirely because the main employment case was filed too late, even though other claims were timely.

What this practically means

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Executive summary

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This ruling of the Employment and Labour Relations Court at Nairobi, delivered virtually on 19th September 2024 by Linnet Ndolo J, determines a preliminary objection dated 23rd April 2024 raised by the 1st Respondent. The objection challenged the Court's jurisdiction on two fronts: first, that the Claimant's claim for unfair termination was statute barred under Section 90 of the Employment Act; and second, that the claim for malicious prosecution fell outside the Court's mandate under Article 162(2)(a) of the Constitution and Section 12 of the Employment and Labour Relations Court Act. The matter had been transferred from the High Court by Meoli J, who held that the substantive claim arose from alleged unfair termination and was therefore best handled by the ELRC. The Court agreed that the dominant cause of action arose from the termination of employment, with the malicious prosecution claim being auxiliary or consequential. Relying on emerging jurisprudence including Banking Insurance & Finance Union (Kenya) v Consolidated Bank of Kenya and Abraham Nyambane Atsiago v Barclays Bank of Kenya, the Court affirmed that it has jurisdiction over auxiliary claims where the dominant cause of action is employment-related. However, since the substantive cause of action was admitted to be statute barred, the Court held that it was stripped of jurisdiction over the entire claim. The preliminary objection was upheld, the Claimant's claim was struck out, and each party was ordered to bear their own costs.

Key legal issues

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01

Jurisdiction over auxiliary claims in mixed cause-of-action suits

Holding

The ELRC has jurisdiction over auxiliary claims where the dominant cause of action arises from employment

Reasoning

The Court relied on emerging jurisprudence, citing Banking Insurance & Finance Union (Kenya) v Consolidated Bank of Kenya and Abraham Nyambane Atsiago v Barclays Bank of Kenya, holding that where the dominant cause of action arises from an employment relationship, the Court may deal with all auxiliary claims, including the claim for malicious prosecution.

p. 2
02

Effect of limitation on the substantive cause of action

Holding

Because the substantive employment claim was statute barred under Section 90 of the Employment Act, the Court was stripped of jurisdiction over the entire claim, including the auxiliary claim

Reasoning

The Court accepted the parties' admission that the unfair termination claim was time-barred under Section 90 of the Employment Act. Since jurisdiction attaches to the substantive cause of action, its being statute barred deprived the Court of jurisdiction to entertain the whole suit, justifying striking out the claim on the preliminary objection.

p. 2

Legal principles established

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  • Where the dominant cause of action arises from an employment relationship, the Employment and Labour Relations Court has jurisdiction to deal with all auxiliary claims
  • In a mixed grill case, jurisdiction is conferred by the substantive cause of action; if that cause is statute barred, the Court is stripped of jurisdiction over the entire claim

Court orders

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  1. 1.The 1st Respondent's Preliminary Objection is upheld
  2. 2.The Claimant's claim is struck out
  3. 3.Each party will bear their own costs
Jurisdiction invoked
Article 162(2)(a) of the Constitution of Kenya and the Employment and Labour Relations Court Act (mandate challenged by the 1st Respondent); limitation under Section 90 of the Employment Act

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, "Nabwayo v SBM Bank (Kenya) Limited & 3 others (Cause 986 of 2023) [2024] KEELRC 2215 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2215/eng@2024-09-19

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