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IndustrialAllowedCause 106 of 2000· [2001] KEIC 11 (KLR)

Kenya Engineering Workers’ Union v Heavy Engineering Ltd (Cause 106 of 2000) [2001] KEIC 11 (KLR)

Industrial Court at Nairobi
14 March 2001
CCCharles P. Chemmuttut
466 words in judgment
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The bottom line

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Kenya's Industrial Court confirmed that a signed settlement between an employer and union becomes binding and enforceable once the court finds it fair.

What this practically means

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Executive summary

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This Industrial Court award arose from a dispute referred to the Court by the Minister for Labour on 13 September 2000 under section 8 of the Trade Disputes Act, Cap. 234, concerning the dismissal of Mr. Dalmas Amolo Migoti, a grievant represented by the Kenya Engineering Workers' Union against Heavy Engineering Ltd. The reference, accompanied by statutory certificates from the Minister and the Labour Commissioner under section 14(9)(e) and (f), was received on 4 October 2000. The Union's memorandum was filed on 16 November 2000 and the Company's reply statement, filed belatedly through Mr. L.W. Kariuki for the F.K.E., on 16 February 2001. At the hearing on 20 February 2001 the parties' representatives jointly sought an adjournment to explore an out-of-court settlement, which was granted. On 14 March 2001 the parties filed a memorandum of settlement signed by Mr. S. Mutambi for the Union and Mr. Kariuki for the Company, and prayed that an award by consent of Kshs. 41,447.75 be entered in favour of the grievant in full and final settlement of his dues. The settlement comprised gratuity for 7 years (Kshs. 24,730.87), unpaid overtime (Kshs. 1,009.42), leave due for 42 days (Kshs. 8,479.15), net salary for September (Kshs. 5,793.30), and one month's notice in lieu (Kshs. 5,249.00), less taxation of Kshs. 3,814.80. The judge found the terms fair and reasonable and awarded in terms thereof on 14 March 2001. Neither party appeared in person; the award was made on the consent memorandum.

Key legal issues

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Adoption of a memorandum of settlement as a consent award

Holding

The court adopted the signed settlement in full and final settlement of the grievant's dues following his dismissal.

Reasoning

The dispute was referred by the Minister for Labour under section 8 of the Trade Disputes Act. After an adjournment to explore settlement, the parties filed a memorandum of settlement signed by their representatives quantifying the grievant's dues at Kshs. 41,447.75, covering gratuity, overtime, leave, salary and notice in lieu, less taxation. The judge found the terms fair and reasonable and awarded accordingly.

p. 2

Legal principles established

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  • A court may enter an award by consent where the parties file a signed memorandum of settlement whose terms the court finds fair and reasonable

Court orders

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  1. 1.Award by consent of Kshs. 41,447.75 entered in favour of the grievant in full and final settlement of his dues, in terms of the memorandum of settlement

Authorities

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Legislation

  • Trade Disputes ActSection 8
  • Trade Disputes ActSection 14(9)(e) and (f)
Jurisdiction invoked
Section 8 of the Trade Disputes Act, Cap. 234, Laws of Kenya (reference by the Minister for Labour)

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 Heavy Engineering Ltd (Cause 106 of 2000) [2001] KEIC 11 (KLR)", Case Analysis (2001). Cause 106 of 2000. Source: https://new.kenyalaw.org/akn/ke/judgment/keic/2001/11/eng@2001-03-14

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