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ELRCPartially AllowedNot stated in the judgment as provided (Memorandum of Claim dated 24th January 2022, amended 8th February 2022)· [2025] KEELRC 127 (KLR)

Kenya Chemical Workers Union v Agri Seeds (K) Ltd (Cause E040 of 2022) [2025] KEELRC 127 (KLR)

Employment and Labour Relations Court
23 January 2025
3,540 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 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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The Claimant union sued Seedco (K) Limited seeking recognition, deduction and remittance of union dues, retention of its members' services, and reinstatement of employees transferred to Staffing Africa Limited. The union claimed to have recruited 55 of the Respondent's 69 unionisable employees, exceeding the simple-majority threshold under section 54 of the Labour Relations Act, and alleged the Respondent locked out union members and then outsourced staff to defeat recognition. The Respondent countered that it had three categories of employees (pensionable, contract and temporary), that a genuine group restructuring led to termination of category three employees with payment of terminal dues, and that affected employees voluntarily moved to Staffing Africa Limited, leaving the union without locus. The court found the Respondent's list of separated employees comprised 104 unionisable employees, of whom 55 had joined the union - a simple majority qualifying for recognition. The Respondent produced no evidence of the alleged employment categories. The layoff memos referred only to temporary labour, yet employees with up to 15 years' service were laid off, showing the outsourcing was not genuine restructuring but a scheme to deny employees their rights under Articles 36 and 41 of the Constitution. The layoff was a redundancy that failed to comply with section 40(1) of the Employment Act, including notification of the union and Labour Officer. Reinstatement being impracticable, and applying Kenya Airways Limited v Aviation & Allied Workers Union Kenya, the court awarded graded compensation of between 2 and 12 months' salary to union members per check-off forms, plus costs of Kshs. 50,000 and interest at court rates from the date of judgment.

Key legal issues

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01

Recognition threshold under section 54 of the Labour Relations Act

Holding

The Claimant had recruited 55 of 104 unionisable employees, more than a simple majority, and was qualified for recognition.

Reasoning

From the Respondent's own list of separated employees, the court found 104 unionisable employees, of whom 55 had been recruited by the Claimant. This surpassed the simple-majority threshold in section 54 of the Labour Relations Act, entitling the union to recognition despite the Respondent's objection.

p. 8
02

Whether the outsourcing/layoff was genuine restructuring or an unfair labour practice

Holding

The outsourcing was not genuine; it targeted employees who had joined the union and violated their constitutional rights of association.

Reasoning

The internal memos referred only to temporary or short-term labour, yet employees with up to 15 years' service were laid off. The Respondent produced no evidence of employment categories or genuine restructuring. The court inferred the layoffs were aimed at defeating union recognition, breaching Articles 36 and 41 of the Constitution and section 4 of the Labour Relations Act.

p. 8
03

Compliance with redundancy procedure under section 40(1) of the Employment Act

Holding

The layoff, being a redundancy, did not comply with section 40(1), including notification of the union and labour officer.

Reasoning

The court held the layoffs amounted to redundancy. The Respondent neither notified the affected employees and the Labour Officer nor the Claimant union, despite knowing it had recruited the employees, as required by section 40(1)(a) and (b) of the Employment Act. This non-compliance compounded the unfair labour practice.

04

Remedy for unfair labour practice where reinstatement is no longer feasible

Holding

Damages in lieu of reinstatement were awarded, graded by length of service, following Kenya Airways Ltd v Aviation & Allied Workers Union.

Reasoning

Guided by the Court of Appeal decision in Kenya Airways Limited v Aviation & Allied Workers Union Kenya & 3 Others, where damages were awarded in lieu of reinstatement, the court awarded compensation of between 2 and 12 months' salary depending on each employee's length of service, limited to employees who were union members per check-off forms.

p. 9

Legal principles established

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  • An employer must recognise a trade union that has recruited a simple majority of its unionisable employees under section 54 of the Labour Relations Act.
  • Terminating or outsourcing employees to deny them the constitutional rights of association and union participation is a violation of Articles 36 and 41 of the Constitution and an unfair labour practice.
  • A redundancy must strictly comply with the conditions in section 40(1) of the Employment Act, including notification of the union and labour officer.
  • An employer averring different categories of employees bears the evidential burden of proving that averment.

Court orders

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  1. 1.Compensation awarded to the Claimant's members for unfair labour practices: 12 months' salary for employees with more than 10 years' service; 10 months' salary for 8 to less than 10 years; 8 months' salary for 6 to less than 8 years; 6 months' salary for one year up to 5 years; 2 months' salary for less than one year
  2. 2.The award relates only to employees who were members of the Claimant as per check-off forms
  3. 3.Costs of Kshs. 50,000 awarded to the Claimant
  4. 4.Interest at court rates from the date of judgment
Jurisdiction invoked
Article 41 of the Constitution and the Labour Relations Act (first-instance employment and labour relations dispute)

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 Chemical Workers Union v Agri Seeds (K) Ltd (Cause E040 of 2022) [2025] KEELRC 127 (KLR)", Case Analysis (2025). Not stated in the judgment as provided (Memorandum of Claim dated 24th January 2022, amended 8th February 2022). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/127/eng@2025-01-23

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