Kenya Union of Domestic Hotels Educational Institutions, Hospitals and Allied Workers (KUDHEIHA) v Ugenya Diploma Primary Teachers Training College (Cause E052 of 2024) [2025] KEELRC 1209 (KLR)
The bottom line
#A Kenyan court ruled an employer's redundancy of 10 workers was unlawful because it skipped mandatory notice, consultation, and fair selection steps under the Employment Act.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the provisions of Section 40(1) of the Employment Act were complied with in declaring the grievants redundant
- 2.Whether the termination of the grievants' employment was unfair and unlawful
- 3.Whether reinstatement is an appropriate remedy
- 4.What alternative reliefs (salary in lieu of notice, notification-period salary, severance pay, 12 months' compensation) are payable
- 5.Whether the respondent can be compelled to sign the Collective Bargaining Agreement
Key legal issues
#Compliance with Section 40(1)(a) - notice of redundancy to the union and Labour Officer
Non-compliant: no notice was given to the claimant union and no evidence proved a notice was forwarded to the local labour officer
The grievants were union members, so notice was required to the union and the Labour Officer at least one month before the effective date. RWI admitted no notice was given to the union and availed no proof of notice to the labour officer. His assertion that employees were notified could not cure the statutory default.
Statement of reasons for and extent of the redundancy
Non-compliant: no letter setting out in concise terms the reasons and extent of the redundancy
RWI had no letter setting out in concise terms what occasioned the redundancy beyond alleged declining enrolment. Although declining enrolment and reduced government grant had been discussed by the Board of Management, the statutory notice requirements were not met.
Selection criteria under Section 40(1)(c)
Non-compliant: the respondent could not explain how the 10 of 27 non-teaching staff were selected
When asked by the court how the number 10 was arrived at, RWI could not identify any selection criteria guided by seniority, skill, ability and reliability as required by Section 40(1)(c).
Consultation as an integral part of the redundancy process
No consultations took place; the BOM Committee informed employees of a decision already taken the day before the letters were dispatched
Relying on Kenya Airways and Cargill, consultation is implied in Section 40(1)(a) and (b). Since the union was not notified, no consultations occurred, and the meeting with employees merely announced a fait accompli.
Whether the court can compel the signing of a CBA
No: collective bargaining is voluntary and the court's only role under the Labour Relations Act is registration of a concluded collective agreement under Section 60
A collective agreement is one voluntarily agreed in writing between a union and an employer. Compelling a party to agree would negate freedom of contract. Following Teachers Service Commission v KNUTC and the words of Odek JA, the prayer was declined.
Quantum of compensation under Section 49(1)(c)
The equivalent of two months' gross salary per grievant is fair compensation
The court considered that the grievants did not appeal the termination, did not contribute to it, served between 5 and 8 years, and were paid gratuity for the duration served, making two months' gross salary fair in the circumstances.
Legal principles established
#- Section 40(1) of the Employment Act mandatorily prescribes the conditions for a fair redundancy, including notice to the union and the Labour Officer at least one month before the effective date
- Consultation between the employer, relevant unions, labour officers and employees is implied by Section 40(1)(a) and (b) of the Employment Act
- Failure to comply with Section 40(1) converts a purported redundancy into an unfair and unlawful termination entitling employees to relief
- Courts cannot compel parties to sign a collective bargaining agreement; collective bargaining is voluntary and grounded on freedom of contract
Court orders
#- 1.Declaration that termination of employment by the respondent was unfair and unlawful
- 2.Equivalent of two (2) months' gross salary compensation for each grievant
- 3.Respondent shall reimburse the claimant's costs assessed at Kshs.30,000.00
- 4.Interest on the compensation from date of judgment till payment in full
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Employment and Labour Relations Court Act, Section 12 (first-instance jurisdiction over employment and labour relations disputes)
Relief refused
#Reinstatement without loss of benefits
No evidence that positions were still available or that reinstatement was tenable and practicable; reinstatement is discretionary under Section 49(1)(c)
Salary in lieu of notice
One month's salary in lieu of notice was already paid as promised in the redundancy letters
One month's salary for notification period
Section 40(1) provides for only one notice, which was paid in lieu; prayer lacked supportive evidence
Severance pay at 15 days for each completed year of service
The respondent had already paid each grievant gratuity for the duration served
Compulsion of the respondent to sign the CBA
Collective bargaining is voluntary; a court cannot force parties to agree as this would negate freedom of contract
Costs
Respondent shall reimburse the claimant's costs assessed at Kshs.30,000.00, with interest on the compensation from date of judgment till payment in full.
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
A panoramic view of the redundancy process undertaken by the respondent reveals that the provisions of Section 40(1) of the Employment Act were not complied with and as a consequence, the purported redundancy transitioned to an unfair and unlawful termination of the employment of the grievants
Clearly, the provisions of Section 40(1)(a) on the notice of redundancy was not complied with.
consultations on an intended redundancy between the employer and the relevant unions labour oficers and employees is implied by Section 40(1)(a) and (b) of the Employment Act
In the upshot, Judgment is entered in favour of the claimant against the respondent as follows: a. Declaration that termination of employment by the respondent was unfair and unlawful. b. Equivalent of two (2) month's gross salary compensation c. Respondent shall reimburse the claimants costs assessed at Kshs.30,000.00 d. Interest on the compensation from date of Judgment till payment in full.
A court Order compelling parties to agree on terms of a draft agreement would negate the principle of freedom of contract and the basic common law principles upon which contracts are based.
In the circumstances the equivalent of two (2) months gross salary is fair.
Issues in the judgment
#The names of the claimant union and the respondent are never stated in the judgment; only the grievants and RWI (Mr. Fredrick Nyawanda) are named.
Internal inconsistency on the date of the termination letters: the pleadings say 13th June 2023 while the analysis says 13th July 2023.
Internal inconsistency on the month of salary paid: submissions state salary up to June 2023, while the analysis states salary up to July 2023.
The claimant's submissions were unavailable on the CTS and could not be considered.
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Union of Domestic Hotels Educational Institutions, Hospitals and Allied Workers (KUDHEIHA) v Ugenya Diploma Primary Teachers Training College (Cause E052 of 2024) [2025] KEELRC 1209 (KLR)", Case Analysis (2025). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1209/eng@2025-04-30
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.