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ELRCOtherNot stated in the judgment

Busolo v AFC Leopards Sports Club (Cause 786 of 2018) [2024] KEELRC 687 (KLR)

Employment and Labour Relations Court
28 March 2024
1,178 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~5 min to read original · ~4 min brief

The bottom line

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A Kenyan court dismissed a football coach's claim because his contract required disputes to go through club channels and arbitration, not the court.

What this practically means

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Executive summary

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John Busolo, a former goalkeeper for AFC Leopards Sports Club, was engaged by the Respondent as Goalkeeper Trainer by contract dated 4th January 2015, effective 4th January 2016, at a monthly net salary of Kshs 100,000 plus Kshs 10,000 win bonus per match won, terminable by two months' notice or pay in lieu. He alleged immediate salary default from January 2016, relegation to the Youth Team by the Head Coach in April 2016, and verbal termination on 8th July 2016 without a termination letter. He sued on 23rd May 2018 seeking declarations of unfair termination, notice pay, salary arrears, house allowance, win bonus, anticipatory salary for the unexpired contract, twelve months' compensation, a certificate of service, costs and interest, totalling Kshs 3,710,000. The Respondent denied the appointment, alleged desertion, and challenged jurisdiction under the Sports Act 2013, though no preliminary objection was pursued; it later ceased to be represented by counsel and did not attend the hearing. The court found clause K of the contract constituted a valid three-tier dispute resolution mechanism - club level, FKF arbitration, then arbitration under the Arbitration Act 1995 or FIFA Regulations - which excludes the Court entirely. Nothing in the Sports Act 2013 ousted the Court's jurisdiction, but clause K did, and the Court also lacked jurisdiction over the annexed mediation. The claim was declined for want of jurisdiction with no order on costs.

Questions the Court framed

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

  1. 1.Whether the Court has jurisdiction over an employment dispute where the contract contains a multi-tier dispute resolution clause excluding the Court and mandating club-level resolution, FKF arbitration, and arbitration under the Arbitration Act 1995 or FIFA Regulations
  2. 2.Whether the Sports Act 2013 removes this employment dispute from the Court's jurisdiction
  3. 3.Whether the Claimant's claims for unfair termination, salary arrears, house allowance, win bonus, anticipatory salary, compensation, certificate of service, costs and interest are properly before the Court

Key legal issues

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01

Effect of clause K dispute resolution clause on the Court's jurisdiction

Holding

Clause K is a valid three-step dispute resolution agreement that excludes the Court entirely; the Claimant filed in the wrong forum.

Reasoning

The court found a valid contract of employment dated 4th January 2015 effective 4th January 2016, containing clause K requiring disputes to be raised at club level, then referred to FKF for arbitration, and finally settled by arbitration under the Arbitration Act 1995 or FIFA Regulations. The court held this mechanism does not include the Court at any stage and consequently it lacks jurisdiction to adjudicate or mediate the dispute.

p. 3
02

Whether the Sports Act 2013 ousts the Court's jurisdiction

Holding

The Respondent's reliance on the Sports Act 2013 was misplaced; nothing in that Act removes the dispute from the Court's jurisdiction, but clause K independently achieves that result.

Reasoning

The Respondent challenged jurisdiction under the Sports Act 2013 but never pursued a preliminary objection. The court found no provision in the Sports Act 2013 stripping the Court of jurisdiction over this employment dispute. However, it held the outcome was the same because clause K of the contract placed the dispute outside the Court's jurisdiction, requiring the Claimant to resort to the agreed forum.

p. 3
03

Jurisdiction over the Court's annexed mediation

Holding

The Court lacked jurisdiction even to mediate the dispute through its annexed mediation, which had been unsuccessful.

Reasoning

The claim was referred to mediation by Notice of Referral dated 8th November 2021, but mediation failed and parties reverted to Court per the Mediator's Report of 27th April 2022. In judgment the court held that since clause K excludes the Court at the beginning, during resolution and at the end, the Court did not have jurisdiction to adjudicate or to mediate through its annexed mediation as it had purported to do.

p. 3

Legal principles established

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  • A valid contractual dispute resolution clause that provides a complete multi-tier mechanism excluding the Court ousts the Court's jurisdiction over employment disputes arising under that contract.
  • The Sports Act 2013 does not oust the Employment and Labour Relations Court's jurisdiction over employment disputes; such ouster must rest on the parties' agreement.

Court orders

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  1. 1.The claim is declined for want of jurisdiction
  2. 2.No order on the costs

The bench

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

majority

Wrote the judgment

Jurisdiction invoked
Court's jurisdiction ousted by clause K of the employment contract, a three-step dispute resolution mechanism culminating in arbitration under the Arbitration Act 1995 or FIFA Regulations

Relief refused

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Entire claim: declaration of unfair termination, notice pay, salary arrears, house allowance, win bonus, anticipatory salary, 12 months' compensation, certificate of service, costs and interest

Claim brought before the wrong forum; clause K of the contract excludes the Court's jurisdiction in favour of club-level resolution, FKF arbitration and arbitration under the Arbitration Act 1995 or FIFA Regulations

p. 3

Costs

No order on the costs (each party to bear own costs effect).

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.

It is ordered: a. The claim is declined for want of jurisdiction.
p. 3Disposition - claim dismissed for want of jurisdiction
b. No order on the costs.
p. 4Costs order
Clause K of his contract is a valid dispute resolution agreement. It is a three-step dispute resolution mechanism. It does not include the Court: not at the beginning; during resolution; or at the end.
p. 3Ouster of jurisdiction by contractual arbitration clause
There is nothing in the Sports Act 2013, which takes this employment dispute out of the jurisdiction of the Court. Clause K of the contract however, does clearly, place the dispute outside the jurisdiction of this Court.
p. 3Sports Act 2013 versus contractual dispute resolution clause
The Claimant ought to place his Claim, before the agreed dispute resolution forum.
p. 3Proper forum for the claim

Issues in the judgment

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minor

The judgment inconsistently dates the executed contract of employment, describing it as dated 4th January 2015 while the effective date and earlier narration refer to 4th January 2016.

minor

The Respondent stated it would raise preliminary objections on jurisdiction and competence but no preliminary objection was ever argued; the jurisdictional finding rests instead on clause K of the contract.

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, "Busolo v AFC Leopards Sports Club (Cause 786 of 2018) [2024] KEELRC 687 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/687/eng@2024-03-28

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