Kenya Union of Domestic Workers, Hotels, Educational Institutions and Hospital Workers Union(KUDHEIHA) v Board of Management - Magui Secondary School (Employment and Labour Relations Cause E014 of 2024) [2024] KEELRC 2639 (KLR)
The bottom line
#A Kenyan employment court refused to impose a pay rise itself, ruling that wages must be settled through genuine negotiation backed by expert financial analysis.
What this practically means
#Executive summary
#Key legal issues
#Whether the Respondent should grant the union's proposed wage increment (30%/20%) or its own 0% proposal
The Court declined to decide the increment itself and referred the question to the Central Planning and Monitoring Unit of the Ministry of Labour and Social Protection for an expert report to be filed within 30 days, with the matter to be mentioned on 27th November 2024.
The Court relied on ILO Convention 98 Article 4 and the Court of Appeal authority that collective bargaining is voluntary and that in economic disputes a court should consider productivity, cost of living and ability to pay. Holding itself not an expert on labour costs, and unwilling to substitute its preference for the parties' freedom of contract, it found expert evidence necessary to assess the Respondent's financial capacity and accordingly referred the issue for expert determination.
Whether the CBA effective date should be 1st July 2023 to 30th June 2025 (union) or 1st July 2024 to 30th June 2026 (employer)
The Court adopted the Respondent's proposal, holding the effective period of the CBA to be 1st July 2024 to 30th June 2026.
The Court applied section 59 of the Labour Relations Act and accepted the Respondent's submission, supported by Mtana v Sopa Lodges (2024) eKLR and Black's Law Dictionary, that before conclusion of negotiations in 2024 the CBA was an inchoate contract whose rights had not vested. Since negotiations concluded in 2024 and the employer bears the burden of labour costs, backdating the CBA would be unreasonable; the Respondent's dates were correct and reasonable.
Legal principles established
#- Negotiation of a CBA is voluntary and founded on social dialogue between employer and trade union; the Court cannot substitute its preference for the parties' freedom to agree on terms of employment.
- A court faced with a question of wage increment ought to take into account productivity, cost of living and the ability of the employer to pay.
- Rights and terms under a CBA do not vest before conclusion of negotiations; a collective agreement becomes enforceable upon registration by the Industrial Court and is effective from the date agreed by the parties.
Court orders
#- 1.The dispute on wage increment is referred to the Central Planning and Monitoring Unit of the Ministry of Labour and Social Protection to prepare an expert report taking into account all relevant parameters to assist the Court in determining whether the Respondent should grant a 30%/20% increment or a 0% increment
- 2.The effective date of the CBA is fixed at 1st July 2024 to 30th June 2026, adopting the Respondent's proposal
- 3.The expert report to be filed in Court in 30 days and supplied to the parties
- 4.Parties to appear before the Court on 27th November 2024 to canvass the report and for determination of the wage increment issue
- Jurisdiction invoked
- Jurisdiction under the Labour Relations Act and Employment Act following failed conciliation of an unresolved collective bargaining dispute (Certificate of unresolved dispute dated 3rd April 2024)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Union of Domestic Workers, Hotels, Educational Institutions and Hospital Workers Union(KUDHEIHA) v Board of Management - Magui Secondary School (Employment and Labour Relations Cause E014 of 2024) [2024] KEELRC 2639 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2639/eng@2024-10-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.