Kenafric Industries Limited v Bakery Confectionary Food Manufacturing and Allied Workers Union (Cause 248 of 2014) (Employment and Labour) [2014] KEIC 10 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#When a collective bargaining agreement becomes legally enforceable
The CBA becomes binding and enforceable only upon registration by the Industrial Court, effective from the date agreed by the parties under Section 59(5) of the Labour Relations Act
The Court compared the definitions of 'collective agreement' in the Labour Relations Act and the Employment Act and noted the Rules placed the onus of registration on the Minister. Holding the substantive law on collective bargaining agreements to be Section 60 of the Labour Relations Act, the Court found that enforceability attaches only on registration; prior to that the CBA is merely an intention of the parties.
Conflict between Rule 35 of the Industrial Court (Procedure) Rules 2010 and Section 60 of the Labour Relations Act 2007
Rule 35 is contra statute and inconsistent with Parliament's intention in Section 60; it was referred to the Rules Committee for amendment
The Court held that delegated legislation cannot vary the primary statute. Whereas Section 60 requires every collective agreement to be submitted to the Industrial Court for registration within fourteen days of conclusion, Rule 35 places the lodging obligation on the Minister. The Court found the Rules attempted to rewrite the law and referred the matter to the Rules Committee.
Effect of delayed presentation of a concluded CBA for registration
The two-year delay in presenting the 2012 CBA for registration breached the statutory fourteen-day requirement and justified deferring registration to allow renegotiation
The CBA covering 2015-2016 was signed in December 2012 but only presented for registration in November 2014. The Court observed that the delay allowed the Employer to have a change of mind on previously agreed issues, and that the best practice is to register a CBA shortly after conclusion. Registration was deferred for 45 days with the existing CBA continuing in force.
Legal principles established
#- A collective bargaining agreement attains legal enforceability only upon registration by the Industrial Court; before registration it is a mere expression of the parties' intention
- Rule 35 of the Industrial Court (Procedure) Rules 2010 conflicts with Section 60 of the Labour Relations Act 2007 and cannot override the substantive statute
- A collective agreement must be submitted for registration within fourteen days of its conclusion as required by statute
Court orders
#- 1.Registration of the CBA deferred for 45 days to allow the parties to renegotiate the CBA and present it for registration
- 2.The existing CBA to hold and continue to have full force of law pending resolution of the dispute within the 45 days
- 3.Each party to bear their own costs
- 4.The Ruling referred to the Rules Committee of the Industrial Court to prepare a suitable amendment to Rule 35 of the Industrial Court (Procedure) Rules 2010 to reflect the intention of Parliament
- Jurisdiction invoked
- Statutory jurisdiction to register collective agreements under Section 60 of the Labour Relations Act 2007 and the Industrial Court (Procedure) Rules 2010
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenafric Industries Limited v Bakery Confectionary Food Manufacturing and Allied Workers Union (Cause 248 of 2014) (Employment and Labour) [2014] KEIC 10 (KLR)", Case Analysis (2014). CBA No. CA 248 of 2014. Source: https://new.kenyalaw.org/akn/ke/judgment/keic/2014/10/eng@2014-12-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.