[2017] KEELRC 1936 (KLR)
The Court found that neither the employment contract nor Clause 4.1 of the Respondent's Human Resource Handbook contained a clear and unequivocal ouster of the Court's jurisdiction. The contract was executed in Nairobi, Kenya, with the Respondent maintaining its main office in Kenya, and the employment was to be...
Source-derived case information.
- Citation
- [2017] KEELRC 1936 (KLR)
- Parties
- Claimant: Isaac Opicho Mukhwana; Respondent: Diakonia Sweden
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 1266 of 2012
- Procedural Posture
- Employment Cause / Ruling on Preliminary Objection
- Outcome
- preliminary objection overruled
- Judges
- L Ndolo
- Legal Topics
- Jurisdiction of Employment Court, Choice of Law in Employment Contracts, International Ngos Employment, Employment Contract Formation
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Isaac Opicho Mukhwana
Claimant
Diakonia Sweden
Respondent
Procedural Posture
Employment Cause / Ruling on Preliminary Objection
Legal Issues
- 1 Whether the Employment and Labour Relations Court has jurisdiction over a claim where the employment contract specifies a foreign place of work and refers to foreign law.
- 2 Whether Clause 4.1 of the Respondent's Human Resource Handbook ousts the jurisdiction of the Kenyan court.
Ratio Decidendi
The Court found that neither the employment contract nor Clause 4.1 of the Respondent's Human Resource Handbook contained a clear and unequivocal ouster of the Court's jurisdiction. The contract was executed in Nairobi, Kenya, with the Respondent maintaining its main office in Kenya, and the employment was to be performed partly in Kenya and partly in Somalia. The Court held that the reference to foreign law in the contract and handbook was general and did not specifically incorporate any foreign law or agreement to the exclusion of Kenyan law or the Court's jurisdiction. Therefore, the preliminary objection on jurisdiction was not well founded and was overruled.
Court Disposition
preliminary objection overruled
Orders
- The Respondent's preliminary objection is overruled.
- Costs to be in the cause.
Full Case Text
Judgment text and source record
36 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT NAIROBI
CAUSE NO 1266 OF 2012
ISAAC OPICHO MUKHWANA………………………………………………….CLAIMANT
VS
DIAKONIA SWEDEN………………………………………………………………RESPONDENT
RULING
1. On 25th July 2012, the Claimant filed a claim for wrongful termination of employment against the Respondent. The Respondent filed a Memorandum of Response on 16th October 2012 and the matter opened for trial on 7th May 2014.
2. The matter was adjourned on several occasions at the parties’ instance and when it came up on 14th March 2016, the attention of the Court was drawn to a preliminary objection raised by the Respondent by notice dated 11th March 2016. This ruling responds to that objection.
3. The basis of the objection is that this Court lacks jurisdiction to entertain the Claimant’s claim because his employment contract expressly provided that the applicable law would be that of the place of work being Garowe, Somalia.
4. The Claimant opposes the objection and states that having entered an unconditional appearance and thereafter filed a Memorandum of Response and Counterclaim, the Respondent had submitted to the jurisdiction of the Court.
5. The Claimant further submits that the Court had raised the issue of jurisdiction suo moto and had made a determination assuming jurisdiction which was not challenged. The Claimant reads mischief in the objection being raised in the course of the proceedings.
6. The Claimant states that the contract of employment dated 11th April 2011 was entered into, signed and concluded in Nairobi, Kenya. Consideration was also paid to the Claimant in Kenya. Further, the Respondent maintained its main office in Kenya and only operated a field office in Garowe, Somalia.
7. The Claimant referred to a document titled ‘Somalia Country Programme:
Human Resources Issues for International Staff based in Garowe, Puntland’providing for Rest and Recuperation (R&R) as follows:
(a) 8 weeks in field and 7 days in Nairobi
(b) Flights for R&R arranged by Diakonia on EC and UN flights
8. This document further provides for work at the Regional office in which case per diem rates for Kenya would apply.
9. From the aforementioned document, the Claimant concludes that his employment contract was to be performed partly in Kenya and partly in Somalia.
10. In urging its case, the Respondent relied on the famous case of Owners ofthe Motor Vessel “Lillian S” v Caltex Oil (Kenya) Ltd [1989] KLRwhere the Court of Appeal held that without jurisdiction, the Court has no power to make any step. Reference was also made to the Supreme Court decision inSamuel Kamau Macharia & Another v Kenya Commercial Bank & 2 Others [2012] eKLRwhere it was held that jurisdiction is not an issue of mere procedural technicality as it goes to the very heart of the matter.
11. Regarding the Claimant’s employment, Counsel for the Respondent referred to Clause 4. 1 of the Respondent’s Human Resource Handbook which provides as follows:
“Conditions of employment shall be regulated between the employer and the employee in accordance with existing labour laws and collective agreements in the country where the workplace is situated.”
12. The Claimant’s employment contract dated 11th April 2011 was executed in Nairobi with the place of work being Garowe-Somalia.
13. The question before the Court is whether the contract of employment as read together with Clause 4. 1 of the Respondent’s Human Resource Handbook ousts the jurisdiction of this Court.
14. In order to answer this question, I need to inquire into the Respondent’s legal form and the nature of its operations. A perusal of the documentary evidence filed in Court, reveals that the Respondent is an international non-governmental organisation with a wide global network. It operates a regional office in Nairobi where the Claimant’s employment contract was executed and issued.
15. It further emerges that the Respondent operates in security zones where field staff work in a non-accompanied environment for a fixed period of time after which the Respondent facilitates their travel for rest and recuperation (R&R).
16. In light of this background, can one say that it was the intention of the parties to the employment contract dated 11th April 2011 that disputes arising therefrom would be outside the jurisdiction of this Court? While 4. 1 of the Respondent’s Human Resource Handbook makes reference to existing labour laws and collective agreements generally, the Court found no evidence of any specific law or agreement incorporated into the Claimant’s employment contract.
17. As held by the Court of Appeal in Kanti & Co Ltd v South British Insurance Co Ltd [1981] eKLRa jurisdiction ouster clause must be clear and unequivocal. I have looked at Clause 4. 1 of the Respondent’s Human Resource Handbook together with the Claimant’s employment contract and find nothing stripping this Court of jurisdiction to entertain the Claimant’s claim.
18. That being the case, I find the objection raised by the Respondent not well taken and proceed to overrule it with costs being in the cause.
19. Orders accordingly.
DATED SIGNED AND DELIVERED IN OPEN COURT AT NAIROBI THIS 13THDAY OFJANUARY 2017
LINNET NDOLO
JUDGE
Appearance:
Mr. Masila for the Claimant
Mr. Tebino for the Respondent