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ELRCAllowedCause No. 96 of 2006

KENYA UNION OF DOMESTIC, HOTELS, EDUCATIONAL INSTITUTIONS, HOSPITALS & ALLIED WORKERS v TRAVELLERS BEACH HOTEL [2007] KEELRC 21 (KLR)

Industrial Court of Kenya
6 March 2007
CCCharles P. ChemmuttutOWO.A. WafulaJKJ.M. Kilonzo
443 words in judgment
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The bottom line

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A Kenyan labour court turned a negotiated salary-arrears settlement into a binding award, securing Kshs.1.7 million for hotel workers.

What this practically means

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Executive summary

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This was a consent award of the Industrial Court of Kenya at Mombasa (Chemmuttut, J, presiding, with Members O.A. Wafula and J.M. Kilonzo) in a trade dispute referred under Section 14(7) and (9)(e) of the Trade Disputes Act, Cap. 234. The dispute notified by the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals & Allied Workers against Travellers Beach Hotel concerned failure by management to pay salary arrears for seven months, from March to September 1999. The notification of dispute, dated 20th March 2006, with the Labour Commissioner's statutory certificate, was received by the Court on 27th September 2006. The Union filed its memorandum on 20th December 2006; the Hotel, through the Federation of Kenya Employers, did not file a reply. The parties then negotiated, and on 6th March 2007 they presented a memorandum of settlement dated 5th February 2007, signed by the Hotel's General Manager, Mr. F. Kiuru, and by Messrs. Mwari S. Njiru and J.B. Odero for the Union. It recorded that the Hotel had, after receiving the Union's memorandum, implemented the prayers and cleared the outstanding arrears of Kshs.1,745,156 to all employees on 22nd December 2006, as per a schedule signed by the payees. Finding the terms reasonable and acceptable, the Court awarded as prayed for by the parties and marked the case as settled. No costs order was made and no authorities were cited.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.Whether the terms of the memorandum of settlement dated 5th February 2007 were reasonable and acceptable so as to be adopted as an award by consent

Key legal issues

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01

Adoption of a settlement as a consent award

Holding

The Court found the settlement terms reasonable and acceptable and entered them as an award by consent, marking the dispute settled.

Reasoning

The dispute concerned failure to pay salary arrears for seven months from March to September 1999. After the Union filed its memorandum and before the Hotel filed a reply, the parties negotiated and signed a memorandum of settlement dated 5th February 2007 recording that the Hotel had cleared the outstanding arrears of Kshs.1,745,156 to all employees on 22nd December 2006, as per a schedule signed by the payees. The Court, being satisfied that the terms were reasonable and acceptable, awarded as prayed and marked the case settled.

p. 2

Legal principles established

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  • The Industrial Court may adopt a memorandum of settlement between the parties as an award by consent where the terms are reasonable and acceptable.

Court orders

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  1. 1.Award entered by consent in terms of the memorandum of settlement dated 5th February 2007, whereby the Respondent paid the outstanding salary arrears of Kshs.1,745,156 to all employees as per the signed schedule
  2. 2.The case marked as settled

The bench

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One judgment of the whole court — no separate or dissenting opinions.

CC
majority

Wrote the judgment

OW
majority
JK
majority
Jurisdiction invoked
Section 14(7) and (9)(e) of the Trade Disputes Act, Cap. 234 (notification of dispute and statutory certificate of the Labour Commissioner)

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

In our considered opinion, the terms of settlement are reasonable and acceptable, and we award as prayed for by the parties and mark the case as settled.
p. 2Consent award adopting the memorandum of settlement - final disposition
After the Respondent received the Claimant’s memorandum on 20th December, 2006 they implemented our prayers and cleared the outstanding on 22nd December 2006 to all the employees amounting to Kshs.1,745,156/= as per the attached schedule signed by the payees.
p. 2Terms of the memorandum of settlement

Issues in the judgment

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minor

The judgment records a request to list the matter for further mention on 6th February, 2006, a date preceding the events described; the consent award is dated 6th March, 2007, suggesting the year 2006 is an evident clerical error for 2007.

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 TRAVELLERS BEACH HOTEL [2007] KEELRC 21 (KLR)", Case Analysis (2007). Cause No. 96 of 2006. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2007/21/eng@2007-03-06

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