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ELRCDismissedNot stated in the judgment extract· [2025] KEELRC 1418 (KLR)

Kenya Engineering Workers Union v Elite Lodgit Limited & another (Cause E655 of 2024) [2025] KEELRC 1418 (KLR)

Employment and Labour Relations Court
15 May 2025
CBC. N. Baari
1,221 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~5 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed that once conciliation of a labour dispute concludes, a union can go to court even if individual contracts require mediation first.

What this practically means

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Executive summary

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This ruling by the Employment and Labour Relations Court at Nairobi (C. N. Baari, J) determined a preliminary objection dated 4th February 2025 raised by the 1st Respondent against a claim by the Kenya Engineering Workers Union. The 1st Respondent argued that the employment contracts contained a clause requiring disputes to be referred to mediation before court, that an active trade dispute (MLSP/LD/IR/13/46/2024) before a conciliator covered the same subject matter, and that the employees had not exhausted alternative dispute resolution mechanisms, rendering the suit premature. The 2nd Respondent supported the objection and additionally contended that the Claimant lacked locus standi, having no recognition agreement or CBA with the 1st Respondent, contrary to Section 54 of the Labour Relations Act. The Claimant countered that the conciliation process had concluded within the stipulated period, that a conciliator's report dated 1st March 2025 had been issued, and that a registered CBA supersedes inferior individual contracts. The court held that the conciliation process had been concluded, as confirmed by the conciliator's report, and that although the suit was filed on 9th November 2024 before the conciliator's decision, this was immaterial. The court further held that a mediation clause in individual contracts is superseded by a CBA, and that the applicable dispute resolution procedure is Part VIII of the Labour Relations Act, which the Claimant had exhausted. Section 73 of the Labour Relations Act then permitted reference of the unresolved dispute to the court. The preliminary objection was dismissed as devoid of merit, with costs to abide the cause.

Key legal issues

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01

Whether the claim was premature because conciliation was still pending and a contractual mediation clause had not been exhausted

Holding

The objection was dismissed; conciliation had been concluded as evidenced by a conciliator's report dated 1st March 2025, so the claim was properly before the court notwithstanding that the suit was filed on 9th November 2024 before the conciliator's decision.

Reasoning

The court noted it was not disputed that a trade dispute existed, and the question was whether conciliation had concluded. The Claimant produced a conciliation report dated 1st March 2025 confirming conclusion. Although the suit predated the report, the court held this immaterial since conciliation had since been concluded, and Section 73 of the Labour Relations Act then permitted reference of the unresolved dispute to the court.

p. 3
02

Whether the mediation clause in individual employment contracts survived the CBA

Holding

The mediation clause was superseded by the CBA; the applicable dispute resolution procedure is Part VIII of the Labour Relations Act, which the Claimant had exhausted.

Reasoning

The court held that upon registration a CBA supersedes inferior individual contracts, as the Claimant submitted. The operative dispute resolution mechanism was therefore the statutory conciliation framework under Part VIII of the Labour Relations Act. Having exhausted it, the Claimant could invoke the court's jurisdiction under Section 73.

p. 3

Legal principles established

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  • A mediation or dispute-resolution clause in individual employment contracts is superseded by a collective bargaining agreement between the parties.
  • Where conciliation of a trade dispute has been concluded, a party may refer the dispute to the Industrial Court under Section 73 of the Labour Relations Act.

Court orders

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  1. 1.The 1st Respondent's preliminary objection dated 4th February 2025 is dismissed as devoid of merit
  2. 2.A finding that the Claimant's claim is properly before court
  3. 3.Costs shall abide the cause

Authorities

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Legislation

  • Civil Procedure ActSection 1A
  • Labour Relations ActPart VIII
  • Labour Relations ActSection 54
  • Labour Relations ActSection 73

Cases cited (4)

  • Geoffrey Ongeri Ondimu v. Beverly School of Kenya Limited
    (2020) KELRC614 KLR
  • KUDHEIHA V. Board of Management Kaimosi Teachers Training College
    (2024) KEELRC 821 (KLR)
  • Kenya Union of Employees of Voluntary and Charitable Organisations [KUEVACO] v Board of Governors & Maino Wanjigi Secondary School
    [2015] KEELRC 1053 (KLR)
  • Law Society of Kenya versus Commissioner of Lands and Others, Nakuru High Court, Civil Case No.464 of 2000
    KLR 706
Jurisdiction invoked
Section 73 of the Labour Relations Act; jurisdiction of the Industrial Court (ELRC) over trade disputes not resolved after conciliation

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 Engineering Workers Union v Elite Lodgit Limited & another (Cause E655 of 2024) [2025] KEELRC 1418 (KLR)", Case Analysis (2025). Not stated in the judgment extract. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1418/eng@2025-05-15

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