[2024] KEELRC 419 (KLR)
The court held that while the Gazette Notice No 6024 of 2018 vests jurisdiction in Magistrates' Courts for employment claims where the employee's salary does not exceed Kshs 80,000, the Employment and Labour Relations Court retains residual jurisdiction. Rather than striking out the claim, the court has the...
Source-derived case information.
- Citation
- [2024] KEELRC 419 (KLR)
- Parties
- Applicant: Victor Rotich; Respondent: Chief Executive Officer Hipora Business Solutions (EA) Limited; Respondent: Hipora Business Solutions (EA) Limited
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause E566 of 2023
- Procedural Posture
- Preliminary Objection / Ruling on Jurisdictional Objection
- Outcome
- claim transferred to magistrate's court
- Judges
- L Ndolo
- Legal Topics
- Jurisdiction of Court, Transfer of Employment Claims, Salary Thresholds, Magistrates Court Jurisdiction
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Victor Rotich
Applicant
Chief Executive Officer Hipora Business Solutions (EA) Limited
Respondent
Hipora Business Solutions (EA) Limited
Respondent
Procedural Posture
Preliminary Objection / Ruling on Jurisdictional Objection
Legal Issues
- 1 Whether the Employment and Labour Relations Court has jurisdiction to hear claims where the claimant's salary is below Kshs 80,000.
- 2 Whether the claim should be struck out or transferred to the Magistrate's Court.
Ratio Decidendi
The court held that while the Gazette Notice No 6024 of 2018 vests jurisdiction in Magistrates' Courts for employment claims where the employee's salary does not exceed Kshs 80,000, the Employment and Labour Relations Court retains residual jurisdiction. Rather than striking out the claim, the court has the discretion to transfer such matters to the appropriate forum. Accordingly, the court directed that the claim be transferred to the Chief Magistrate’s Court at Milimani for hearing and determination, ensuring that the claimant's right to be heard is preserved and the matter is determined by the court with proper jurisdiction.
Court Disposition
claim transferred to magistrate's court
Orders
- The claim is transferred to the Chief Magistrate’s Court at Milimani for hearing and determination.
- Each party will bear their own costs.
Full Case Text
Judgment text and source record
25 paragraphs
Rotich v Chief Executive Officer Hipora Business Solutions (EA) Limited & another (Cause E566 of 2023) [2024] KEELRC 419 (KLR) (29 February 2024) (Ruling)
Neutral citation: [2024] KEELRC 419 (KLR)
Republic of Kenya
In the Employment and Labour Relations Court at Nairobi
Cause E566 of 2023
L Ndolo, J
February 29, 2024
Between
Victor Rotich
Claimant
and
Chief Executive Officer Hipora Business Solutions (EA) Limited
1st Respondent
Hipora Business Solutions (EA) Limited
2nd Respondent
Ruling
1. By notice dated 22nd September 2023, the Respondents challenge the jurisdiction of this Court to hear and determine the Claimant’s claim. The Respondent’s Preliminary Objection is supported by the following grounds:a.That in light of Section 4 of the Employment and Labour Relations Court Act and Section 9(b) of the Magistrate’s Court Act, this Court lacks jurisdiction to hear and determine the claim;b.That the suit is incompetent and ought to be struck out with costs.
2. The parties urged their respective positions by way of written submissions. Both parties cited the decision in Mukisa Biscuit Manufacturing Co. Ltd v West End Distributors Ltd (1969) EA where a Preliminary Objection was defined as one that:“…consists of a pure point of law which has been pleaded, or which arises by clear implication out of pleadings, and which if argued as a preliminary point may dispose of the suit…”
3. The Respondent argues that because the Claimant’s monthly salary fell below the Kshs 80,000 threshold set by Gazette Notice No 6024 dated 10th June 2018, then his claim as filed in this Court is fatally defective and incompetent.
4. While it is true that the subject Gazette Notice donated jurisdiction to Magistrates of the rank of Senior Resident Magistrate and above, to hear and determine employment claims where the monthly salary of the employee does not exceed Kshs 80,000 the residual jurisdiction of this Court remains intact.
5. It follows therefore that this Court has the latitude to transfer a claim such as the present one to the right forum.
6. In the result, I direct that this claim be transferred to the Chief Magistrate’s Court at Milimani for hearing and determination.
7. Each party will bear their own costs.
8. Orders accordingly.
DELIVERED VIRTUALLY AT NAIROBI THIS 29TH DAY OF FEBRUARY 2024LINNET NDOLOJUDGEAppearance:Mr. Kipkirui for the ClaimantMr. Kirimi for the Respondent