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ELRCDismissedNot stated in judgment (Cause)· [2025] KEELRC 1530 (KLR)

Kenya Engineering Workers Union v Bhachu Industries Ltd (Cause E657 of 2024) [2025] KEELRC 1530 (KLR)

Employment and Labour Relations Court
22 May 2025
634 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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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

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Executive summary

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Bhachu Industries Ltd raised a preliminary objection dated 15 October 2024 contending that the Employment and Labour Relations Court lacked pecuniary jurisdiction over a Claim filed by the Kenya Engineering Workers Union on behalf of two members, Francis Kyalo Kisua (monthly basic salary Kshs 28,026) and Nicholas Munywoki Mbatha (Kshs 49,411), because Gazette Notice No 6024 of 22 June 2018 limits the matters delegated to Magistrates' Courts to employment disputes where gross monthly pay does not exceed Kshs 80,000. The Union filed grounds of opposition and both parties filed submissions. The Court considered the Gazette Notice issued by Chief Justice Maraga under section 29(3) and (4)(b) of the Employment and Labour Relations Court Act, which appointed Senior Resident Magistrates and above as Special Magistrates to hear employment disputes within the salary threshold. The Court held that the Gazette Notice delegated certain jurisdictions to Magistrates' Courts but expressly denied delegated jurisdiction over trade disputes. Applying the definition of a trade dispute in section 2 of the Labour Relations Act, and noting that the Union is a registered trade union with a recognition agreement with the Respondent and brought the Cause on behalf of its members, the Court found the action to be without doubt a trade dispute, outside the Magistrates' Courts' delegated jurisdiction and properly before the ELRC irrespective of the grievants' salaries. The preliminary objection was dismissed with costs to the Union on 22 May 2025.

Key legal issues

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01

Whether the Court lacks pecuniary jurisdiction because the grievants earned below Kshs 80,000/- gross monthly pay

Holding

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

Reasoning

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.

p. 3
02

Whether the Claim constitutes a trade dispute within section 2 of the Labour Relations Act

Holding

Yes; a dispute between a trade union and an employer concerning an employment matter is a trade dispute

Reasoning

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.

p. 3

Legal principles established

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  • 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

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  1. 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

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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 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.