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Court of AppealPartially AllowedNot stated in the judgment as provided· [2024] KECA 656 (KLR)

Kisii University v Kenya University Staff Union (Civil Appeal E145 of 2022) [2024] KECA 656 (KLR)

Court of Appeal of Kenya
7 June 2024
5,342 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~21 min to read original · ~4 min brief

The bottom line

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Kenya's Court of Appeal confirmed that a redundancy is unlawful if an employer skips genuine consultation with the union before issuing redundancy notices, though compensation was reduced from 7 to 3 months' salary.

What this practically means

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Executive summary

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The appellant University declared 204 unionised employees redundant by a notice dated 30th September 2020, effective 31st October 2020. The respondent Union sued, obtaining a judgment dated 4th May 2022 declaring the redundancies unlawful and unfair, sustaining the employees' contracts under an injunctive order issued on 21st October 2020, and awarding each employee the equivalent of 7 months' gross wages, certificates of service, and terminal benefits with interest. On appeal, the Court of Appeal (Okwengu, Omondi and Ngugi, JJA) framed three issues: the lawfulness of the redundancy, the consultation process, and entitlement to damages. It held that although the redundancy was substantively justified - driven by a drastic 70% reduction in fees from privately sponsored students and an enterprise resource planning system that rendered clerical jobs superfluous - the process was procedurally unfair. The notices conveyed a fait accompli naming specific employees, leaving no room for genuine consultation, which the Court held is required at the formative stages of redundancy, being implicit in section 40 of the Employment Act and mandated by Article 47 of the Constitution, section 4(3) of the Fair Administrative Action Act, and ILO Convention No. 158 and Recommendation No. 166 through Article 2(6) of the Constitution. The Union's prompt resort to court within seven days did not excuse the employer. On remedies, the Court accepted that some compensation was justified in lieu of reinstatement even though damages were not specifically pleaded, but found 7 months' salary excessive and substituted 3 months' salary. The appeal was allowed only to that extent, with each party bearing its own costs of the appeal.

Key legal issues

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01

Whether the declared redundancy was lawful/justified

Holding

Substantively justified (revenue decline, ERP system rendering clerical roles superfluous), but procedurally unfair because no genuine pre-decision consultations with the Union were held; the redundancy process was therefore unlawful.

Reasoning

The Court held substantive justification existed given the reduction in privately sponsored student fees and automation. However, the notices named specific employees whose positions would terminate after 30 days, leaving no room for genuine consultation. Consultation is implicit in section 40(1), required by Article 47, section 4(3) of the Fair Administrative Action Act, and ILO Convention No. 158/Recommendation 166 via Article 2(6) of the Constitution. The Union's rush to court within 7 days did not excuse the employer, which should have consulted before issuing notices.

p. 9
02

Whether the respondent was entitled to damages and the appropriate quantum

Holding

Some compensation was justified in lieu of reinstatement notwithstanding that damages were not specifically pleaded, but the award of 7 months' gross wages was excessive; substituted with 3 months' salary.

Reasoning

The Court accepted that an award of compensation is an available relief for unfair termination under sections 49 and 50 of the Employment Act, and that a court may base its decision on an unpleaded issue where the course of trial left it to the court. Applying the section 49(4) factors - impact on livelihood, non-reinstatement, and continued entitlement to redundancy dues - the Court found 7 months' salary excessive and not a due exercise of discretion, and substituted 3 months.

p. 10
03

Whether the trial court could sustain employees' contracts by injunctive orders and order payment of salaries up to judgment

Holding

Not directly disturbed; the injunctive orders of 21 October 2020 were never discharged, varied or appealed, and remained in force until judgment.

Reasoning

The respondent argued, and the record showed, that injunctive orders preserved the status quo pending determination of the main suit. The appellant did not move to have the orders discharged or varied, nor appeal or seek review of them. The Court did not overturn this aspect, and its variation of the judgment was limited to the quantum of damages.

p. 4

Legal principles established

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  • A lawful redundancy must be both substantively justified and procedurally fair, and consultation with the union must occur at the formative stages, before notices of a final decision are issued.
  • The requirement of consultation before redundancy is implicit in section 40 of the Employment Act and reinforced by ILO Convention No. 158 and Recommendation No. 166 as domesticated by Article 2(6) of the Constitution, and by Article 47 and the Fair Administrative Action Act.
  • A notice that communicates a fait accompli does not satisfy the consultation requirement; genuine consultations can only be carried out during the formative stages of the redundancy process.

Court orders

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  1. 1.Appeal allowed in regard to damages, limited to the extent of reducing the damages awarded
  2. 2.Award of 7 months' salary set aside and substituted with an award of 3 months' salary
  3. 3.Each party to bear its own costs of the appeal
On appeal from
Employment and Labour Relations Court (trial/Superior Court)
Not stated
Jurisdiction invoked
First appeal to the Court of Appeal under Rule 31(1)(a) of the Court of Appeal Rules

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Kisii University v Kenya University Staff Union (Civil Appeal E145 of 2022) [2024] KECA 656 (KLR)", Case Analysis (2024). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2024/656/eng@2024-06-07

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