Kenya Engineering Workers Union v Bhachu Industries Ltd (Cause E657 of 2024) [2025] KEELRC 1530 (KLR)
The bottom line
#Kenya's Employment Court ruled that salary caps do not apply when a trade union files a case, so union-backed disputes stay in the ELRC.
What this practically means
#Executive summary
#Key legal issues
#Whether the Court lacks pecuniary jurisdiction because the grievants earned below Kshs 80,000/- gross monthly pay
The pecuniary threshold in Gazette Notice No 6024 applies only to disputes delegated to Magistrates' Courts; it does not oust the ELRC's jurisdiction where the dispute is a trade dispute reserved to the ELRC
The Gazette Notice appointed Senior Resident Magistrates and above as Special Magistrates to hear employment disputes where gross monthly pay does not exceed Kshs 80,000, but expressly excluded trade disputes under the Labour Relations Act. Since the Union, a registered trade union with a recognition agreement, brought the Cause on behalf of members, it is a trade dispute and falls outside the delegated jurisdiction, remaining properly before the ELRC.
Whether the Claim constitutes a trade dispute within section 2 of the Labour Relations Act
Yes; a dispute between a trade union and an employer concerning an employment matter is a trade dispute
Section 2 of the Labour Relations Act defines a trade dispute as a dispute between employers and trade unions concerning any employment matter, including dismissal, suspension or redundancy. The Union is registered and has a recognition agreement with the Respondent, and it filed the Cause on behalf of its members, squarely bringing the dispute within the statutory definition.
Legal principles established
#- A Cause brought by a registered trade union with a recognition agreement on behalf of its members is a trade dispute under section 2 of the Labour Relations Act
- Gazette Notice No 6024 of 22 June 2018 expressly excludes trade disputes from the employment matters delegated to Magistrates' Courts, irrespective of the employees' salary levels
Court orders
#- 1.The Notice of Preliminary Objection dated 15 October 2024 is dismissed with costs to the Union
- Jurisdiction invoked
- Employment and Labour Relations Court Act, 2011; Labour Relations Act, 2007 (definition of trade dispute); Gazette Notice No 6024 of 22 June 2018 issued under section 29(3) and (4)(b) of the ELRC Act
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Engineering Workers Union v Bhachu Industries Ltd (Cause E657 of 2024) [2025] KEELRC 1530 (KLR)", Case Analysis (2025). Not stated in judgment (Cause). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1530/eng@2025-05-22
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.