[2013] KEELRC 461 (KLR)
The court found that the union's demand for Kshs.800,000 per employee as ex gratia payment was unreasonable, especially in light of the employer's willingness to re-engage the affected employees and the existence of a prior agreement for Kshs.40,000 ex gratia payment for some employees. The court determined that the...
Source-derived case information.
- Citation
- [2013] KEELRC 461 (KLR)
- Parties
- Applicant: Kenya Union of Commercial, Food and Allied Workers; Respondent: Tru Foods Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 1323 of 2011
- Procedural Posture
- Employment and Labour Cause / Award
- Outcome
- dispute settled; file closed
- Judges
- J Rika
- Legal Topics
- Redundancy, Ex Gratia Payment, Collective Bargaining Agreement, Termination Benefits
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Kenya Union of Commercial, Food and Allied Workers
Applicant
Tru Foods Limited
Respondent
Procedural Posture
Employment and Labour Cause / Award
Legal Issues
- 1 Whether the ex gratia payment offered by the employer in redundancy is fair and adequate.
- 2 Whether the union's demand for Kshs.800,000 per employee is reasonable in the circumstances.
Ratio Decidendi
The court found that the union's demand for Kshs.800,000 per employee as ex gratia payment was unreasonable, especially in light of the employer's willingness to re-engage the affected employees and the existence of a prior agreement for Kshs.40,000 ex gratia payment for some employees. The court determined that the employer's offer of Kshs.40,000 was fair and adequate, and therefore upheld this offer as the appropriate ex gratia payment in addition to other redundancy entitlements under the CBA. The dispute was marked as settled on these terms.
Court Disposition
dispute settled; file closed
Orders
- The employer's offer of Kshs.40,000 ex gratia payment per employee is upheld.
- The dispute is marked as settled and the file is closed.
Full Case Text
Judgment text and source record
20 paragraphs
REPUBLIC OF KENYA
Industrial Court of Kenya
Cause 1323 of 2011 [if !mso]> <style> v:* {behavior:url(#default#VML);} o:* {behavior:url(#default#VML);} w:* {behavior:url(#default#VML);} .shape {behavior:url(#default#VML);} </style> <![endif]
KENYA UNION OF COMMECIAL, FOOD AND ALLIED WORKERS...............................CLAIMANT
VERSUS
TRU FOODS LIMITED.................................................................................................RESPONDENT
Rika J
CC. Leah Muthaka
Mr. Nyumba for the Claimant
Mr. H. Okeche, instructed by Federation of Kenya Employers for the Respondent
ISSUE IN DISPUTE: REDUNDANCY
AWARD
The parties have agreed on all issues upon conciliation, except the amount of ex-gratia payment to be paid to the employees exiting employment through redundancy.
The employer has offered an ex gratia payment of Kshs.40,000, while the Union is demanding Kshs.800,000 for each employee.
The Court notes this payment is over and above other redundancy payments that have been proposed pursuant to the parties’ CBA.
A demand of Kshs.800,000 for each employee is not reasonable. This is more so considering that the employer has left open the possibility of re-engaging the employees on new contracts, as and when opportunities arise. There was an earlier agreement in respect of some of the affected employees, for payment of Kshs.40,000 ex gratia. It would seem to this Court that the offer of Kshs.40,000 in the present circumstances is fair and adequate.
The Court upholds the offer of Kshs.40,000 in ex gratia made by the employer to the employees, over and above the other redundancy payments. The dispute is marked as settled and file closed upon these terms.
Dated and delivered at Nairobi this 21st day of March 2013.
James Rika
Judge