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Case Brief · caselaw.co.ke
ELRCPartially AllowedNot stated in judgment (ELRC Cause/Motion; Notice of Motion dated 10th June 2025)· [2025] KEELRC 2403 (KLR)

Amalgamated Union of Kenya Metal Workers v Shankar Electronics (Cause E064 of 2025) [2025] KEELRC 2403 (KLR)

Employment and Labour Relations Court
29 July 2025
1,536 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~6 min to read original · ~4 min brief

The bottom line

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A Kenyan employer selling its business must tell the union within 21 days whether workers keep their jobs, but the court won't halt the sale negotiations.

What this practically means

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Executive summary

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The Claimant trade union, holding a Recognition Agreement and Collective Bargaining Agreement with the Respondent employer, moved the Court by Notice of Motion dated 10th June 2025 seeking urgent orders to stay ongoing negotiations for the sale of the Respondent's business, to have a union representative present at any such negotiations, and to restrain the Respondent from intimidating or coercing employees to withdraw union membership. The union alleged clandestine negotiations and refusal to engage it, invoking Article 41 of the Constitution and Section 74 of the Labour Relations Act. The Respondent opposed via a preliminary objection on prematurity and jurisdiction, arguing the dispute required conciliation under Section 62 of the Labour Relations Act and that the union had not proved the alleged sale (relying on Speaker of the National Assembly v Karume and section 107 of the Evidence Act). The court declined to stay the negotiations, holding that a union's authority under a Recognition Agreement and CBA is not an authority at large but is confined to human capital matters; however, the union has a right to receive information facilitating effective collective bargaining. Because the Respondent filed no replying affidavit, the factual assertion of ongoing negotiations stood unrebutted. The court allowed the application only to the extent of ordering the Respondent, within 21 days, to disclose whether employees will automatically transfer to the new owner upon transfer of the business and, if not, how they will be disengaged. Costs were placed in the cause.

Key legal issues

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01

Extent of a trade union's participation in negotiations for the sale of an employer's business

Holding

The union has a right to information relevant to collective bargaining, but cannot be inserted into the entire sale negotiation process; the court ordered disclosure of information on employee transfer/disengagement instead of staying the negotiations.

Reasoning

Recognition Agreements and CBAs confer authority to engage on behalf of unionisable employees, but this authority is limited to matters of human capital, not all business decisions. The sale negotiations will cover matters beyond human resources, so it would be inequitable to shackle the negotiating parties as sought. The court instead leveraged the union's informational right, ordering the Respondent to disclose within 21 days whether employees will automatically transfer to the new owner and, if not, how they will be disengaged.

p. 4
02

Effect of failure to file a replying affidavit on uncontroverted facts

Holding

The Respondent's factual assertions, including the ongoing negotiations, stood unrebutted; its submission that the Claimant failed to prove the sale under section 107 of the Evidence Act failed.

Reasoning

Despite court directions, the Respondent filed no replying affidavit against the application. The factual matters in the supporting affidavit therefore required no further proof; the evidential burden argument based on section 107 of the Evidence Act could not stand on unrebutted affidavit evidence.

p. 4

Legal principles established

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  • A trade union's authority under a Recognition Agreement and CBA to engage the employer is not an authority at large over all business decisions, but is confined to matters directly affecting employees' terms and conditions of work and human capital.
  • An employer with a Recognition Agreement and CBA has an obligation to supply the union with information that would facilitate effective collective bargaining.
  • Factual assertions in a supporting affidavit that are not controverted by a replying affidavit stand unrebutted.

Court orders

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  1. 1.Application allowed only in the terms that the Respondent shall, within 21 days of the ruling, supply the Claimant with information pertaining to whether employees will automatically transit into the employment of the new owner upon transfer of business, and if not, how they will be disengaged from their employment
  2. 2.Costs of the application shall be in the cause
Jurisdiction invoked
Section 74 of the Labour Relations Act, 2007 (invoked by the Claimant); Respondent challenged jurisdiction on prematurity

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, "Amalgamated Union of Kenya Metal Workers v Shankar Electronics (Cause E064 of 2025) [2025] KEELRC 2403 (KLR)", Case Analysis (2025). Not stated in judgment (ELRC Cause/Motion; Notice of Motion dated 10th June 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2403/eng@2025-07-29

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