[2017] KEELRC 1404 (KLR)
The court found that the employment contract between the parties expressly provided for arbitration of any disputes arising from the contract. The court noted that under Article 159 of the Constitution, courts are encouraged to promote alternative dispute resolution mechanisms. The Arbitration Act further supports...
Source-derived case information.
- Citation
- [2017] KEELRC 1404 (KLR)
- Parties
- Claimant: Job Ndege; Respondent: IwayAfrica Services Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 2007 of 2014
- Procedural Posture
- Employment Cause / Ruling on Preliminary Objection
- Outcome
- suit stayed pending arbitration
- Judges
- DI Wasike
- Legal Topics
- Arbitration Clauses in Employment Contracts, Jurisdiction of Employment Court
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Job Ndege
Claimant
IwayAfrica Services Limited
Respondent
Procedural Posture
Employment Cause / Ruling on Preliminary Objection
Legal Issues
- 1 Whether the Employment and Labour Relations Court has jurisdiction to hear the dispute in light of an arbitration clause in the employment contract.
- 2 Whether the suit should be stayed pending arbitration as per the contract and the Arbitration Act.
Ratio Decidendi
The court found that the employment contract between the parties expressly provided for arbitration of any disputes arising from the contract. The court noted that under Article 159 of the Constitution, courts are encouraged to promote alternative dispute resolution mechanisms. The Arbitration Act further supports the enforcement of arbitration agreements. As such, the court held that it lacked jurisdiction to entertain the suit at this stage and that the proper course was to stay the proceedings pending reference of the dispute to arbitration as agreed by the parties.
Court Disposition
suit stayed pending arbitration
Orders
- The suit is stayed pending arbitration as per the contract.
- No further proceedings shall be taken in court until arbitration is concluded.
Full Case Text
Judgment text and source record
21 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT OF KENYA AT NAIROBI
CAUSE NO. 2007 OF 2014
JOB NDEGE…………………..………......CLAIMANT
VERSUS
IWAYAFRICA SERVICES LIMITED.... RESPONDENT
RULING
1. The Respondent raised as preliminary the objection that the court lacked jurisdiction to entertain the suit herein by reason of the fact that the contract of employment between the parties provided that any dispute concerning the contract shall be referred to arbitration.
2. The Court has reviewed and considered the sample contract attached to the claimant’s own memorandum of claim and noted that clause 21. 5 provided that any dispute, difference or question which may arise at any time between the parties touching upon the construction of the agreement or rights and liabilities of any party to the agreement shall be referred to the decision of the person to be appointed at the request of any of them by the Chairman of Kenya Chapter of the Institute of Chartered Arbitrators in accordance with and subject to the provisions of the Arbitration Act No. 4 of 1995.
3. There can be no doubt from the above that the parties herein had intended that their relationship to be subject to alternative form of dispute resolution. Under Article 159 of the Constitution, the Courts are encouraged in the exercise of their judicial authority to encourage alternative forms of dispute resolution.
4. The objection by the respondent is therefore merited and the suit herein is hereby stayed pending arbitration.
5. It is so ordered.
Dated at Nairobi this ………… day of April, 2017.
Abuodha J. N.
Judge
Delivered this 28th day of April 2017
In the presence of:-
..………………………for the Claimant and
…………………………for the Respondent.
Abuodha J. N.
Judge