Kenya Engineering Workers Union v Engineering Suppliers Limited (Cause E073 of 2021) [2025] KEELRC 93 (KLR)
The bottom line
#A Kenyan court awarded three workers six months' pay for being placed on indefinite unpaid leave without their consent, while upholding a pay cut they had signed for.
What this practically means
#Executive summary
#Key legal issues
#Locus standi of the Claimant union
The Claimant had locus standi because the Recognition Agreement was never cancelled or revoked by the National Labour Board and the Respondent did not refer any dispute for conciliation.
Although the Respondent terminated the CBA by letter dated 30th November 2019 and applied to the National Labour Board for revocation of the Recognition Agreement under Section 54(5) of the Labour Relations Act, the Board never responded or revoked the agreement, and the Respondent never invoked the conciliation route in Section 54(6). The Recognition Agreement therefore remained in place when the suit was filed, entitling the union to sue on behalf of the grievants.
Lawfulness of the 40% salary reduction
The reduction was consensual, in writing, and lawful under Section 10(5) of the Employment Act; the refund claim failed.
Each of the three grievants signed and dated letters dated 1st April 2020 agreeing to a pay cut until further notice, during the Covid-19 pandemic. The court was satisfied this variation of the employment contracts complied with Section 10(5) of the Employment Act, and declined the prayer for refund of the deducted sums.
Lawfulness of the unpaid leave
Sending the grievants on unpaid leave until further notice was unlawful as it varied their contracts without consent.
After the paid leave ended on 28th May 2020, the Respondent placed the grievants on unpaid leave until further notice. The Respondent adduced no evidence of consultation or consent. The reduced salaries had been paid for only two months. Unilateral variation of contract terms without consent is unlawful, so the grievants were entitled to their reduced salaries from 1st June to 30th November 2020.
Whether employment was terminated, and claims for 12 months' compensation and redundancy
No termination occurred; the 12 months' compensation claim failed and the redundancy declaration prayer was misplaced.
The grievants did not accept the redundancy offer letters dated 1st December 2020 within the five days given, and did not resume duty when called by emails. CW-1 indicated he was working elsewhere. The court found the contracts were never terminated, so no compensation under Section 49 was due, and a redundancy declaration could not be granted at the suit's behest.
Certificates of service
Allowed pursuant to Section 51(1) of the Employment Act, to be issued within thirty days.
The claim for certificates of service was granted as a statutory entitlement under Section 51(1) of the Employment Act, with the Respondent directed to issue them to the three grievants within thirty days of the judgment.
Legal principles established
#- A recognition agreement not revoked by the National Labour Board nor referred to conciliation under Section 54(6) of the Labour Relations Act remains in force and confers locus standi on the union.
- An employer cannot unilaterally vary contractual terms of employment, such as by placing employees on unpaid leave, without their consent.
Court orders
#- 1.Judgment entered for the Claimant against the Respondent: George Mwashumbe Kshs.360,000/=; Judith Muteshi Ivayo Kshs.168,000/=; Joseph Kadenge Kshs.107,100/=; total Kshs.635,100/=
- 2.The awarded sums shall be subject to statutory deductions pursuant to Section 49(2) of the Employment Act
- 3.The Claimant Trade Union is awarded Kshs.60,000/= as reimbursement of money spent in the course of litigation pursuant to Rule 70(4) of the ELRC (Procedure) Rules 2024
- 4.The Respondent shall issue the three grievants with Certificates of Service pursuant to Section 51(1) of the Employment Act within thirty days from the date of the Judgment
- Jurisdiction invoked
- Article 41 and 47 of the Constitution; Employment Act; Labour Relations Act 2007; Employment and Labour Relations Court (Procedure) Rules 2024
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Engineering Workers Union v Engineering Suppliers Limited (Cause E073 of 2021) [2025] KEELRC 93 (KLR)", Case Analysis (2025). Memorandum of Claim dated 9th July 2021, filed 6th August 2021. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/93/eng@2025-01-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.