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IndustrialAllowedCause 7 of 2003· [2003] KEIC 2 (KLR)

Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals & Allied Workers v Chogoria P.C.E.A. Hospital (Cause 7 of 2003) [2003] KEIC 2 (KLR)

Industrial Court of Kenya
11 December 2003
1,213 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan hospital was ordered to pay 37 former workers their full retirement and redundancy benefits under a union agreement it claimed didn't apply to it.

What this practically means

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Executive summary

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This first-instance award of the Industrial Court at Nairobi arose from a dispute referred by the Minister for Labour on 5th March 2003 under Section 8 of the Trade Disputes Act, Cap. 234, concerning the refusal to pay retirement and redundancy benefits to 37 former employees (grievants) of Chogoria P.C.E.A. Hospital. The Union, through Mr. S.N. Mwari, presented tabulations of the grievants' entitlements under Clauses 16 and 18 of a collective agreement between the Union and the National Christian Council of Kenya (NCCK) in force in 1998, dividing the grievants into retirees (Group I) and redundants (Group II). The Hospital, represented by Mr. Gitonga Basilio, conceded the tabulations were correct under the collective agreement but contended that, although owned by the P.C.E.A. Church, the Hospital had its own terms and conditions of service, relying on Article 6(b)(i) of the 2002 amended NCCK Constitution and By-Laws, which provides that the Council's actions shall not commit a member without its consent. The Hospital further urged that additional payments would cause serious financial hardship. The court held that P.C.E.A. was a corporate member of NCCK, which had negotiated and signed collective agreements on behalf of its members including P.C.E.A., and that the 2002 amendment could not apply since the grievants were retired and declared redundant in 1998. The Union's demand was held justified and the Hospital was ordered to pay the tabulated terminal benefits forthwith.

Key legal issues

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01

Applicability of the NCCK collective agreement to the Hospital's employees

Holding

The Hospital, as an institution of P.C.E.A., a corporate member of NCCK, was bound by the collective agreement; the Hospital's own terms and conditions did not displace it

Reasoning

The court found P.C.E.A. was a corporate member of NCCK, which had negotiated and signed collective agreements on behalf of its members including P.C.E.A. The Hospital's reliance on Article 6(b)(i) of the 2002 amended NCCK Constitution failed because the grievants were retired and declared redundant in 1998, before the 2002 amendment.

p. 7
02

Entitlement to retirement/redundancy benefits

Holding

The Union's demand was justified and the Hospital was ordered to pay the tabulated terminal benefits

Reasoning

Counsel for the Hospital conceded the tabulations were correct under Clauses 16 and 18 of the collective agreement in force in 1998, but disputed applicability. Having found the agreement applicable, the court held the demand justified and awarded payment of the tabulated amounts forthwith.

p. 7

Legal principles established

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  • A collective bargaining agreement negotiated and signed by NCCK on behalf of its corporate members, including P.C.E.A., binds member institutions and applies to their employees

Court orders

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  1. 1.The Hospital to pay forthwith to the 37 grievants their terminal benefits as tabulated in Schedules 'A' and 'B' (retirees and redundants)
Jurisdiction invoked
Section 8 of the Trade Disputes Act, Cap. 234 (reference by the Minister for Labour), with statutory certificates under Section 14(9)(e) and (f)

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 Union of Domestic, Hotels, Educational Institutions, Hospitals & Allied Workers v Chogoria P.C.E.A. Hospital (Cause 7 of 2003) [2003] KEIC 2 (KLR)", Case Analysis (2003). Cause 7 of 2003. Source: https://new.kenyalaw.org/akn/ke/judgment/keic/2003/2/eng@2003-12-11

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