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ELRCPartially AllowedNot stated in judgment

Kenya Shoe and Leather Workers Union v Technoplast Limited (Employment and Labour Relations Cause E547 of 2023) [2024] KEELRC 613 (KLR)

Employment and Labour Relations Court
14 March 2024
1,692 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~7 min to read original · ~4 min brief

The bottom line

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A Kenyan employment court ruled employers only remit union dues actually deducted from workers' salaries, and cannot claw back disputed payments without a court order.

What this practically means

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Executive summary

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The Claimant, a trade union with a recognition agreement and CBA with the Respondent employer, sought orders compelling the Respondent to remit outstanding trade union dues and agency fees under sections 48 and 49 of the Labour Relations Act, alleging that from April 2023 the Respondent irregularly withheld Kshs 30,000.00 per month from monthly collections. The Respondent opposed, contending that since October 2019 it had erroneously paid the Kshs 30,000.00 monthly on behalf of casual employees from whose salaries the amounts could not be recovered, accumulating to Kshs 1,680,000.00, and it sought to stop the payments and recover the sums by offset. The court held that while employers must deduct and remit union dues, the law does not require dues to be sourced from the employer's own resources; dues must be deducted from employees' income, and casual employees may pay directly under section 52. The court found the Respondent's concerns valid but held it could not unilaterally recover the alleged erroneous payments without a court order, and whether the alleged agreement to pay the flat monthly sum is enforceable must await full trial. Interim orders were issued allowing the Respondent to stop the Kshs 30,000.00 payments, requiring continued remittance of dues and agency fees for regular employees, forbidding unilateral recovery of the Kshs 1,680,000.00, and directing the Claimant to arrange direct dues payment for casual members. Costs of the applications abide the outcome of the suit. Judgment delivered online by Manani J on 14th March 2024.

Questions the Court framed

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

  1. 1.Whether the Respondent can be compelled to remit to the Claimant trade union dues money which it has not collected from employees, particularly casual employees not on regular payroll
  2. 2.Whether the Respondent is entitled to unilaterally recover the sum of Kshs 1,680,000.00 allegedly paid in error without a court order
  3. 3.Whether the interim orders made earlier should be set aside

Key legal issues

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01

Source of trade union dues

Holding

Employer must remit dues deducted from employees' salaries, not from its own resources

Reasoning

The obligation to deduct at source exists because the employer settles salaries; but the law does not require the employer to fund dues from its own resources. Casual employees not on regular salary may pay directly under section 52, or parties may agree another arrangement, the enforceability of which awaits full trial.

p. 3
02

Unilateral recovery of alleged erroneous payments

Holding

The Respondent cannot self-help by offsetting the Kshs 1,680,000.00 against dues without a court order

Reasoning

Whether the payments were erroneous or made pursuant to an agreement is disputed and enforceability of the alleged agreement must be confirmed at trial. Pending that, the Respondent cannot unilaterally recover sums allegedly paid in error; such recovery requires a court order.

p. 3

Legal principles established

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  • An employer is only obliged to remit trade union dues actually deducted from employees' salaries, not dues sourced from its own resources
  • An employer may not unilaterally recover alleged erroneous payments from remittances without a court order

Court orders

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  1. 1.The Respondent is allowed not to remit the monthly sum of Kshs 30,000.00 on account of casual employees until the action is heard and determined
  2. 2.The Respondent to continue remitting trade union dues and agency fees from employees in regular employment who are members or CBA beneficiaries
  3. 3.The Respondent is forbidden from deducting from those remittances in purported recovery of the alleged erroneous payments totaling Kshs 1,680,000.00 until determination of the suit
  4. 4.The Claimant to arrange with its casual-employee members for direct payment of trade union dues under section 52 of the Labour Relations Act
  5. 5.Costs of the two applications to abide the outcome of the suit

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over trade union dues and CBA disputes under the Labour Relations Act

Relief refused

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Continued remittance of the Kshs 30,000.00 monthly payment for casual employees by the Claimant

The employer cannot be compelled to remit dues it has not collected from employees' salaries; arrangement pending full trial

p. 3

Costs

The costs of the two applications shall abide the outcome of the suit.

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.

pending the full trial of the case, the Respondent shall continue to remit to the Claimant trade union dues and agency fees from employees who are in its regular employment. However, for employees who are serving on casual basis, they are at liberty to remit their trade union dues directly to the Claimant.
p. 3Interim disposition on dues remittance
The Respondent is forbidden from making any deductions from the amounts in paragraph b) above purportedly in recovery of the purported erroneous payments to the Claimant totaling Kshs 1,680,000.00 until this action is heard and determined on the merits.
p. 4Final orders - no unilateral recovery

Issues in the judgment

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minor

The judgment does not name the parties by their actual names; they are referred to only as Claimant and Respondent

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 Shoe and Leather Workers Union v Technoplast Limited (Employment and Labour Relations Cause E547 of 2023) [2024] KEELRC 613 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/613/eng@2024-03-14

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