Kenya Building, Construction, Timber, Furniture & Allied Industries Employees’ Union v Niazsons (K) Ltd. (Cause 57 of 2006) (Employment and Labour) [2006] KEIC 2 (KLR)
The bottom line
#A Kenyan court ordered a company's receiver to pay 20 dismissed workers their terminal dues within 60 days, but refused extra compensation.
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 Union was the proper party to represent the unionisable employees of the Company
- 2.Whether the 20 grievants were wrongfully dismissed/declared redundant without payment of terminal dues
- 3.What terminal benefits and dues are payable to the grievants under L.N. No. 153 of 1998
Key legal issues
#Union's standing to represent the grievants
The Union, being registered and facing no rival claim to recognition, was the sole and proper representative of the Company's unionisable employees.
Counsel for the Union submitted that it was a registered trade union under the Trade Union Act, Cap. 233, and that although there was no recognition agreement or collective bargaining agreement, it was the rightful representative of the unionisable employees. The Court accepted this, noting no rival trade union claimed recognition or representation.
Wrongful dismissal/redundancy of the 20 grievants
The claim stood unchallenged; the Company disregarded the legal provisions of the relevant sectoral order and failed to pay terminal/redundancy dues.
The dispute was heard ex parte as the Company, though notified and served, neither filed a reply statement nor appeared. The Minister's investigator found the grievants were declared redundant between 1999 and 2000, that the relevant sectoral order's provisions were disregarded, and that terminal dues were unpaid. The Union's demand accordingly stood unchallenged and was granted in full.
Entitlement to compensation for loss of employment
Compensation (up to 12 months) was refused because the grievants' engagements were for a specific period and specific jobs.
Although the Union prayed for maximum compensation of 12 months for loss of employment, the Court found the grievants' engagements, though permanent in form, were tied to specific periods and specific jobs, disqualifying them from compensation; only the terminal benefits under L.N. No. 153 of 1998 were awarded.
Legal principles established
#- A registered trade union, where no rival union claims recognition or representation, is the sole and proper representative of the unionisable employees of a company
- In cases of insolvency, salaries, wages and terminal benefits of employees are given preferential treatment in the distribution of the assets of the enterprise
Court orders
#- 1.The amounts claimed in the Union's memorandum are granted to the grievants
- 2.The Receiver of the Company is ordered to pay the granted amounts to the grievants within sixty (60) days from the date of the award
- 3.A copy of the award to be forwarded to the counsel for the Receiver for implementation or enforcement
The bench
#One judgment of the whole court — no separate or dissenting opinions.
- Jurisdiction invoked
- Section 8 of the Trade Disputes Act, Cap. 234 (reference by the Minister for Labour)
Relief refused
#Compensation for loss of employment (up to 12 months) sought by the Union
The engagements, though permanent, were for a specific period and specific jobs
Costs
No costs order was made in the award.
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.
Since the demand by the Union, on behalf of the grievants, stands unchallenged, the amounts hereinabove are granted; and since, in cases of insolvency, salaries or wages or terminal benefits of employees owed are given preferential treatment or status in the distribution of the assets of the enterprise, the Receiver in this case is ORDERED to pay the same to the grievant within sixty (60) days from the date of this award.
The grievants are not, however, entitled to any compensation because it would appear that their engagements, though permanent, were for a specific period and specific jobs.
In our view the Union, having been registered as such and no rival trade union is claiming recognition or representation, is the sole and proper one to represent the interests of the unionisable employees of the said Company.
In any case, the said letter did not absolve the Company from filing its reply statement to the Union's memorandum, and no reasons were given for the Company's inability to appear during the hearing of this dispute. The matter was, therefore, heard ex-parte.
Issues in the judgment
#Inconsistencies in the names of grievants between the schedule and the claims list (e.g. 'Nzanzi Malii' vs 'Nyanza Malii'; 'Agness Kanini' vs 'Agned Kanini'; 'Kepher Mbai' vs 'Kephar Mbai'; 'Verginia Waeni Munyao' vs 'Virvinia W. Munyao')
The judgment identifies the presiding officer as 'CP CHEMUTTUT, J' in the coram but signs off as 'CHARLES P. CHEMMUTTUT, MBS., JUDGE.'
Key timeline
#Practical implications
#Frequently asked questions
#Later judgments citing this (10)
#Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.
- James & Catherine Holdings Ltd v Thika Greens Ltd & another (Environment & Land Case E003 of 2024) [2024] KEELC 1690 (KLR)[2024] KEELC 1690 (KLR)20 Mar 2024followed
- Kimemia v Ngumi (Environment and Land Miscellaneous Application E083 of 2023) [2024] KEELC 1187 (KLR)[2024] KEELC 1187 (KLR)5 Mar 2024applied
- Godson Sixty One School Limited v Symbion Kenya Limited (Civil Appeal 158, 159 & 160 of 2020 (Consolidated)) [2023] KECA 900 (KLR)[2023] KECA 900 (KLR)24 Jul 2023applied
- Mwampembwa v Nation Media Group Limited (Miscellaneous Application 50 of 2020) [2021] KEELRC 2426 (KLR)[2021] KEELRC 2426 (KLR)21 Oct 2021
- Nyutu Agrovet Limited v Airtel Networks Kenya Limited; Chartered Institute of Arbitrators-Kenya Branch[2019] KESC 11 (KLR)6 Dec 2019
- Synergy Industrial Credit Limited v Cape Holdings Limited[2019] KESC 12 (KLR)6 Dec 2019
- Thika Coffee Mills Ltd v Rwama Farmers Co-operative Society Ltd (Civil Appeal 251 of 2013) [2018] KECA 1 (KLR)[2018] KECA 1 (KLR)12 Oct 2018followed
- DHL Excel Supply Chain Kenya Limited v Tilton Investments Limited [2017] KECA 534 (KLR)[2017] KECA 534 (KLR)12 May 2017followed
- Nyutu Agrovet Limited v Airtel Network Kenya Limited [2016] KECA 444 (KLR)[2016] KECA 444 (KLR)17 Jun 2016
- INTEX CONSTRUCTION LTD v NATIONAL HOUSING CORPORATION [2009] KECA 151 (KLR)[2009] KECA 151 (KLR)9 Oct 2009distinguished
Cite this brief
#Cite this brief
Caselaw, "Kenya Building, Construction, Timber, Furniture & Allied Industries Employees’ Union v Niazsons (K) Ltd. (Cause 57 of 2006) (Employment and Labour) [2006] KEIC 2 (KLR)", Case Analysis (2006). Cause 57 of 2006. Source: https://new.kenyalaw.org/akn/ke/judgment/keic/2006/2/eng@2006-09-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.