[2021] KEELRC 2070 (KLR)
The court held that the parties had expressly agreed to resolve any disputes arising from the employment contract through mediation and, if necessary, arbitration, as stipulated in clause 6.2 of their contract. This clause was clear and unambiguous, and the parties were entitled in law to select their own forum for...
Source-derived case information.
- Citation
- [2021] KEELRC 2070 (KLR)
- Parties
- Claimant: Narayaran Krishnamurthy; Respondent: The Nairobi West Hospital
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause E6476 of 2020
- Procedural Posture
- Employment Cause / Ruling on Preliminary Objection
- Outcome
- claim struck out for want of jurisdiction
- Judges
- J Rika
- Legal Topics
- Employment Contracts, Redundancy, Arbitration Clauses, Jurisdiction, Termination of Employment
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
More case intelligence is available
Unlock the full research layer for this judgment.
Parties
Narayaran Krishnamurthy
Claimant
The Nairobi West Hospital
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 the arbitration clause in the employment contract.
- 2 Whether the claim should be struck out for want of jurisdiction.
Ratio Decidendi
The court held that the parties had expressly agreed to resolve any disputes arising from the employment contract through mediation and, if necessary, arbitration, as stipulated in clause 6.2 of their contract. This clause was clear and unambiguous, and the parties were entitled in law to select their own forum for dispute resolution. As such, the court found that it lacked jurisdiction to entertain the claim until the agreed alternative dispute resolution mechanisms had been exhausted. The preliminary objection was therefore upheld, and the claim was struck out.
Court Disposition
claim struck out for want of jurisdiction
Orders
- The claim is struck out with no order on costs.
- Parties shall pursue their dispute under clause 6.2 of the contract of employment.
Full Case Text
Judgment text and source record
22 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT
AT NAIROBI
CAUSE NUMBER E6476 OF 2020
BETWEEN
NARAYARAN KRISHNAMURTHY............................................CLAIMANT
VERSUS
THE NAIROBI WEST HOSPITAL.........................................RESPONDENT
RULING
1. The Claimant initiated this Claim on 20th November 2020. He states that he was employed by the Respondent, as Group Chief Executive Officer and Managing Director, on a fixed term contract of 2 years. He executed the contract on 1st July 2020.
2. He was issued by the Respondent a notice of redundancy dated 16th October 2020. He had served for about 4 months, and states, he was prepared to see out his contract in full. He claims that termination was actuated by malice, was unfair and unlawful. He prays for anticipatory salaries for the remainder of the contract, compensation for unfair termination, damages and an assortment of terminal benefits.
3. He simultaneously filed an Application, under Certificate of Urgency, asking the Court to restrain the Respondent, through an order of temporary injunction, from terminating his contract.
4. The Respondent objects to the entire Claim, and filed a notice of preliminary objection, based on clause 6. 2 of the contract of employment executed between the Parties, subject matter of the Claim. The clause states:
‘’ If any dispute arises out of this contract of employment, the Employer and the Employee [each ‘a party’ and jointly ‘parties’] will first attempt to settle by mediation. If the dispute is not settled by mediation, is shall be referred to arbitration by a single arbitrator, appointed jointly by the parties. The making of an arbitration award shall be a condition precedent to any right of action by one party against the other on the matter so arbitrated.’’
The Court Finds: -
5. The Parties have positively rejected the jurisdiction of this Court, as they are entitled to do in law, through their mediation/arbitration clause above. They have selected their own forum. The clause is unambiguous. The dispute herein is at the wrong forum. The preliminary objection has merit.
IT IS ORDERED: -
a. The Claim is struck out with no order on the costs.
b. Parties shall pursue their dispute under clause 6. 2 of the contract of employment.
Dated and delivered at Nairobi this 25th day of February, 2021
James Rika
Judge