Kenya Union of Commercial, Food and Allied Workers v Rumukia Farmers Cooperative Society Ltd [2022] KEELRC 13114 (KLR) | Redundancy Procedure | Esheria

Kenya Union of Commercial, Food and Allied Workers v Rumukia Farmers Cooperative Society Ltd [2022] KEELRC 13114 (KLR)

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Kenya Union of Commercial, Food and Allied Workers v Rumukia Farmers Cooperative Society Ltd (Cause E005 of 2020) [2022] KEELRC 13114 (KLR) (31 October 2022) (Judgment)

Neutral citation: [2022] KEELRC 13114 (KLR)

Republic of Kenya

In the Employment and Labour Relations Court at Nyeri

Cause E005 of 2020

DKN Marete, J

October 31, 2022

Between

Kenya Union of Commercial, Food and Allied Workers

Claimant

and

Rumukia Farmers Cooperative Society Ltd

Respondent

Judgment

1. This matter was originated by way of a Memorandum of Claim dated October 30, 2020. The issue in dispute is unfair/unlawful redundancy of 36 employees.

2. The Respondent in a Response to claim dated May 13, 2021 denies the claim and prays that it be dismissed with costs.

3. The claimant’s case is that the parties relate through a mutual agreement in the manner of a Recognition Agreement whereby several Collective Bargaining Agreements have been concluded. These culminate in the latest being for the period April 1, 2018 to March 20, 2020.

4. It is the claimant’s further case that the parties have continued to enjoy healthy industrial relations until the election into office of the current management committee in 2018.

5. This crisis and disagreement was a genesis in July 2019 when the chair of the respondents addressed the County Cooperative office informing them of the intended redundancy of 70 workers. This was never informed to the claimants and the Ministry of Labour, or at all.

6This matter was later referred to conciliation but this failed due to the recalcitrance of the respondent;

7. It is her other case that on April 29, 2020 while the conciliation was on progress the respondent declared 36 workers redundant with effect from May 1, 2020. This was in total disregard of the conciliation process before the conciliator. In the letters there were calculation of service gratuity but leave days and compensation was not included. See App HN 8 (a b c)-44 (a b c), all annexures to the claim.

8. The claimant avers that the Respondent contravene section 40 of the Labour Employment Act 2007 , where it states in(a)“Where the employee is a member of a trade union, the employer notifies the union to which the employee is a member and the labour officer in charge of the area where the employee is employed of the reasons for, and the extent of the intended redundancy not less than a month prior to the date of the intended date of termination on account of redundancy.

9. She prays as follows;1. Rose Wairimu Murage 1st Grievanti.One month’s notice 41,680. 00ii.Service Gratuity 1,375,637. 00iii.Maximum Compensation for unlawful redundancy 500,160. 00Total 1,917,477 .002. Charles Wachira 2nd Grievanti.One month’s notice 14,471. 00ii.Service Gratuity 549,163. 00iii.Maximum Compensation for unlawful redundancy 173,652. 00Total737,286. 003. James Wachira Njoya 3rd Grievanti.One month’s notice 29,941. 00ii.Service Gratuity 1,137,738. 00iii.Maximum compensation for unlawful redundancy 359,292. 00Total1,526,971. 004. Zachary Mwangi Macharia 4th Grievanti.One month’s notice 22,953. 00ii.Service Gratuity 838,182. 0iii.Maximum compensation for unlawful redundancy 275,436. 0Total1,136,571. 005. Erastus Kiago 5th Grievanti.One month’s notice 14,471. 00ii.74 Off days 32,949. 90iii.Service Gratuity 558,563. 00iv.Maximum compensation for unlawful redundancy 173,652. 00Total779,635. 006. Richard Gaichuhie Nginyi 6th Grievanti.One month’s notice 14,471. 00ii.61 Off days 13,358. 0iii.Service Gratuity 529,490. 00iv.Maximum compensation for unlawful redundancy 173,652. 00Total730,971. 007. Aristus Kinyua Wachiuri 7th Grievanti.One month’s notice 22,953. 00ii.Service Gratuity 854,533. 00iii.Maximum compensation for unlawful redundancy 275,436. 00Total1,152,922. 008. Francis Kinyua Muturi 8th Grievanti.One month’s notice 14,471. 00ii.Service Gratuity 529,490. 00iii.Maximum compensation for unlawful redundancy 173,652. 00Total717,613. 009. Anthony Gachahi 9th Grievanti.One month’s notice29,941. 00ii.Service Gratuity1,129,174. 00iii.Maximum compensation for unlawful redundancy359,292. 00Total1,518,407. 0010. Charles Wanjau Wanderi 10th Grievanti.One month’s notice14,471. 00ii.Service Gratuity547,283. 00iii.Maximum compensation for unlawful redundancy173,652. 00Total735,406. 0011. Robert Kimaru 11th Grievanti.One month’s notice14,471. 00ii.Service Gratuity486,234. 00iii.Maximum compensation for unlawful redundancy173,652. 00Total674,357. 0012. Joyce Muthoni Maina 12th Grievanti.One month’s notice22,455. 00ii.Service Gratuity845,430. 00iii.Maximum compensation for unlawful redundancy269,460. 00Total1,137,345. 0013. Patrick Muriithi 13th Grievanti.One month’s notice21,956. 00ii.Service Gratuity792,825. 00iii.Maximum compensation for unlawful redundancy263,472. 00Total1,078,256. 0014. John Githae 14th Grievant(i)One month’s notice 21,956. 00(ii)Service Gratuity 632,340. 00(iii)Maximum compensation for unlawful redundancy 263,472. 00Total 917,768 .0015. Bancy Wangu 15th Grievanti.One month’s noticeii.Annual leave 30 days22,455. 0025,909. 60iii.Service Gratuity845,430. 00iv.Maximum Compensation for unlawful redundancy269,460. 00TOTAL 1,163,254. 6016. Anthony Ndegwa Wambugu 16th Grievanti.One month’s notice20,527. 00(ii)Service Gratuity344,862. 00i.Maximum Compensation for unlawful redundancy246,324. 00Total611,713. 0017. Simon Maina Muturi 17th Grievanti.One month’s notice19,527,00ii.Service Gratuity328,062. 00iii.Maximum compensation for unlawful redundancy234,324. 00Total581,913. 00(18)Joseph Gichine 18th Grievanti.One month’s notice12,582. 00ii.Service Gratuityiii.Maximum compensation for unlawful redundancy181,188. 00150,984. 00344,754. 00(19)Patrick Mwangi Kuria 19th Grievanti.One month’s noticeii.81Off days13,283. 0041,381. 65iii.Service Gratuity239,094. 00iv.Maximum compensation for unlawful redundancy199,236. 00Total 492,994. 6520. Stephen Njogu Kimaru 20th Grievanti.One month’s notice12,582. 00ii.20 Off days7,743. 00iii.Service Gratuity150,990. 0iv.Maximum compensation for unlawful redundancy150,984. 00Total322,299. 0021. Phillip Kamau Kimondo 21st Grievanti.One month’s notice12,582. 00ii.Service Gratuity120,792. 00iii.Maximum compensation for unlawful redundancy150,984. 00Total 284,358. 0022. James Wahome 22nd Greivanti.One month’s notice.........16,603. 00ii.Annual leave 30 days......19,157. 30iii.Service Gratuity159,396. 00iv.Maximum compensation for unlawful redundancy199,236. 00Total..........394,392. 3023. Godwin Gichohi 23rd Grievanti.One month’s notice.........7,874. 00ii.Off days 28 days...... 7,066. 80iii.Service Gratuity59,058. 00iv.Maximum compensation for unlawful redundancy94,488. 00Total...........168,486. 8024. Peter Maina Wangechi 24th Greivanti.One month’s notice..........14,471. 00ii.Off days 60 days...........26,716. 15iii.Service Gratuity558,563. 00iv.Maximum compensation for unlawful redundancy173,652. 00Total............ 773,402. 15. 25. John Kiruthu 25th Grievanti.One month’s notice12,582. 00ii.Service Gratuity181,888. 00iii.Maximum compensation for unlawful redundancy150,984. 00Total345,454. 0026. Stephen Methu 26th Grievanti.One month’s notice15,871. 00ii.Service Gratuity529,490. 00iii.Maximum compensation for unlawful redundancy190,452. 00Total735,813. 0027. George Kamau Weru 27th Grievanti.One month’s notice12,582. 00ii.Service Gratuity301,980. 00iii.Maximum compensation for unlawful redundancy150,984. 00Total465,546. 0028. Dickson Mwaniki Kahiga 28th Grievanti.One month’s notice12,582. 00ii.Service Gratuity181,888. 00iii.Maximum compensation for unlawful redundancy150,984. 00Total345,454. 0029. John Mwihu 29th Grievanti.One month’s notice17,850. 00ii.Service Gratuity171,360. 00iii.Maximum compensation for unlawful redundancy214,200. 00Total403,410. 0030. Gerald Theuri Githinji 30th Grievanti.One month’s notice12,582. 00ii.Off Days 30 Days11,614. 60iii.Leave Days 30 days11,614. 60iv.Service Gratuity181,188. 00v.Maximum compensation for unlawful redundancy150,984. 00Total367,983. 2031. Bernard Gachago 31st Grievanti.One month’s notice12,582. 00ii.Service Gratuity150,990. 00iii.Maximum compensation for unlawful redundancy150,984. 00Total..........314,556. 0032. Stephen Maregwa 32nd Grievanti.One month’s notice12,582. 00ii.Service Gratuity181,188. 00iii.Maximum compensation for unlawful redundancy150,984. 00Total.....344,754. 0033. Albert Kibugu 33rd Grievanti.One month’s notice..........22,953. 00ii.Off days 99 days........69,920. 65iii.Leave Days 30 days...........26,484. 20iv.Service Gratuity826,335. 00v.Maximum compensation for unlawful redundancy275,436. 00Total.........1,221,128. 8534. Elijah Nyingi Mathege 34th Grievanti.One month’s notice......... 12,582. 00ii.24 Off days..........9,291. 70iii.Service Gratuity181,188. 00iv.Maximum compensation for unlawful redundancy150,984. 00Total354,045. 7035James Karoki 35th Grievanti.One month’s notice........12,582. 00ii.Annual leave 30 days.........14,517. 70iii.Service Gratuity211,386. 00iv.Maximum compensation for unlawful redundancy150,984. 00Total389,469. 7036. Samuel Githinji Thirima 36th Grievanti.One month’s notice.......12,582. 00ii.64 Off days............24,630. 15iii.Service Gratuity120,792. 00iv.Maximum compensation for unlawful redundancy150,984. 00Total308,988. 15Cost of the suit to the Claimant

10. It is her case that the redundancy was carried out for legitimate reasons which were communicated to the employees.

11. It is her further case that redundancy has already taken place and that the remedy for reinstatement is not available to the parties. This is not tenable in law and fact.

12. The issues for termination are therefore;1. Whether the termination of the employment of the 76 grievants was wrongful, unfair and unlawful.2. Whether the claimant is entitled to the relief sought.3. Who bears the costs of this cause.

13. The 1st issue for determination is whether the termination of the employment of the 36 grievants was wrongful, unfair and unlawful. The claimant in her written submissions dated 6th May, 2022 reiterate a claim and narrates a case of an unlawful redundancy and therefore unlawful termination of the employment of the grievants by the Respondent. She therefore prays for inter alia reinstatement without loss of benefits. This is beside a withdrawal or nullification of the letters of redundancy dated April 29, 2020.

14. The claimant faults the redundancy process for non-compliance with section 40 of the Employment Act, 2007 on redundancy. It is her case and submission that the Respondent did not issue the requisite notices to the union or even the grievants, or at all. This dements the process and renders it unlawful.

15. The claimant in her written submissions dated 6th May, 2022 reiterates her case of unlawful land unprocedural redundancy on the part of the Respondent to the hurt and detriment of the workers/grievants. On this she seeks to rely on the authority of Section 40 (a) and (b) of the Employment Act, 2007 as follows;a.“Where the employee is a member of a trade union, the employer notifies the union to which the employee is a member and the labour officer in charge of the area where the employee is employed of the reasons for, and the extent of the intended redundancy not less than a month prior to the date of the intended date of termination on account of redundancy”d.Where there is in existence a collective agreement between an employer and a trade union setting out terminal benefits payable upon redundancy; the employer has not placed the employee at a disadvantage for being or not being a member of the trade union.15. That the thirty-six employees were unlawfully declared redundant without the right procedure being followed.16. That the redundancy letters issued to the thirty-six employees were not copied to the claimant or the Labour officer which was contrary to Section 44 of the Employment Act, 2007. 18. That the Respondent acted in total disregard of Employment Act, 2007 and the parties’ Collective Bargaining Agreement.19. That the criteria of first in last out was not applied during the redundancy of the thirty six employees.20. That the thirty six employees who were declared redundant were not issued with the required notice of one month as per the law.

16. The Respondent did not avail any written submissions in answer. her case was one of denial of the claim and justification of the redundancy process. This however remains just that, a denial. She does not offer any evidence to either controvert the claim or support her case for lawful termination of employment by way of redundancy. I therefore find a case of unlawful termination of employment of the grievants by the Respondent and hold as such.

17. The 2nd issue for determination is whether the claimant is entitled to the relief sought. She is. Having succeeded on a case of unlawful termination of employment, she becomes entitled to the relief sought.

18. I am therefore inclined to allow the claim and order relief as follows;1. Rose Wairimu Murangei.One month’s notice41,680. 00ii.Service Gratuity1,375,637. 00iii.Six (6) months Compensation for unlawful redundancy250,080. 00Total 1,667,397 .002. Charles Wachirai.One month’s notice14,471. 00ii.Service Gratuity549,163. 00iii.Six (6) months Compensation for unlawful redundancy86,826. 00Total 650,460. 003. James Wachira Njoyai.One month’s notice29,941. 00ii.Service Gratuity1,137,738. 00iii.Six (6) monthscompensation for unlawful redundancy179,646. 00Total 1,347,325. 004. Zachary Mwangi Machariai.One month’s notice22,953. 00ii.Service Gratuityiii.Six (6) months compensation for unlawful redundancy838,182. 0137,718. 0Total 998,853. 005. Erastus Kiagoi.One month’s notice......... 14,471. 00ii.74 Off days...........32,949. 90iii.Service Gratuity558,563. 00iv.Six (6) months compensation for unlawful redundancy86,826. 00Total 692,809. 906. Richard Gaichuhie Nginyii.One month’s notice14,471. 00ii.61 Off days13,358. 0iii.Service Gratuity529,490. 00iv.Six (6) months compensation for unlawful redundancy86,826. 00Total 644,145. 007. Aristus Kinyua Wachiurii.One month’s notice ... 22,953. 00ii.Service Gratuity......854,533. 00iii.Six (6) months compensation for unlawful redundancy...137,718. 00Total......1,015,204. 008. Francis Kinyua Muturii.One month’s notice....14,471. 00ii.Service Gratuity.....529,490. 00iii.Six (6) months compensation for unlawful redundancy.. 86,826. 00Total....630,787. 009. Anthony Gachahii.One month’s notice...29,941. 00ii.Service Gratuity.... 1,129,174. 00iii.Six (6) months compensation for unlawful redundancy....179,646. 00Total.....1,338,761. 0010. Charles Wanjau Wanderii.One month’s notice.......14,471. 00ii.Service Gratuity.........547,283. 00iii.Six (6) months compensation for unlawful redundancy....86,826. 00Total...648,580. 0011. Robert Kimarui.One month’s notice....14,471. 00ii.Service Gratuity........486,234. 00iii.Six (6) months compensation for unlawful redundancy....86,826. 00Total.......587,531. 0012. Joyce Muthoni Mainai.One month’s notice.......22,455. 00ii.Service Gratuity....845,430. 00iii.Six (6) months compensation for unlawful redundancy...134,730. 00Total....1,002,615. 0013. Patrick Muriithii.One month’s notice......21,956. 00ii.Service Gratuity.......792,825. 00iii.Six (6) months compensation for unlawful redundancy.........131,736. 00Total.......946,517. 0014. John Githae(i)One month’s notice...... 21,956. 00(ii)Service Gratuity .........632,340. 00(iii)six (6) months compensation for unlawful redundancy ...131,736. 00Total .....786,032 .0015. Bancy Wangui.One month’s notice......... 22,455. 00ii.Annual leave 30 days.......25,909. 60iii.Service Gratuity.......845,430. 00iv.Six (6) months Compensation for unlawful redundancy...134,730. 00Total 1,028,524. 6016. Anthony Ndegwa Wambuguii.One month’s notice..... 20,527. 00(ii)Service Gratuity.........344,862. 00iii.Six (6) months Compensation for unlawful redundancy..123,162. 00Total......488,551. 0017. Simon Maina Muturii.One month’s notice.........19,527,00ii.Service Gratuity.......328,062. 00iii.Six (6) compensation for unlawful redundancy.....117,162. 00Total....464,751. 00(18)Joseph Gichinei.One month’s notice....12,582. 00ii.Service Gratuity.............181,188. 00iii.Six (6)months compensation for unlawful redundancy....75,492. 00Total ...269,262. 0019. Patrick Mwangi Kuriai.One month’s notice..............13,283. 00ii.81 Off days.....41,381. 65iii.Service Gratuity.....239,094. 00iv.Six (6) months compensation for unlawful redundancy....132,836. 00Total...426,594. 6520. Stephen Njogu Kimarui.One month’s notice...12,582. 00ii.20 Off days......7,743. 00iii.Service Gratuity....150,990. 0iv.Six (6) compensation for unlawful redundancy...75,492. 00Total....246,807. 0021. Phillip Kamau Kimondoi.One month’s notice....12,582. 00ii.Service Gratuity.. 120,792. 00iii.Six (6) months compensation for unlawful redundancy....75,492. 00Total....208,866. 0022. James Wahomei.One month’s notice..............16,603. 00ii.Annual leave 30 days.....19,157. 30iii.Service Gratuity......159,396. 00iv.Six (6) months compensation for unlawful redundancy....166,036. 00Total....361,192. 3023. Godwin Gichohii.One month’s notice.......7,874. 00ii.Off days 28 days.....7,066. 80iii.Service Gratuity......59,058. 00iv.Six (6) months compensation for unlawful redundancy....47,244. 00Total.....121,242. 8024. Peter Maina Wangechii.One month’s notice.... 14,471. 00ii.Off days 60 days.........26,716. 15iii.Service Gratuity...........558,563. 00iv.Six (6) compensation for unlawful redundancy...86,826. 00Total........ 686,576. 1525. John Kiruthui.One month’s notice..........12,582. 00ii.Service Gratuity........181,888. 00iii.Six (6) compensation for unlawful redundancy.....75,492. 00Total.....269,962. 0026. Stephen Methui.One month’s notice...........15,871. 00ii.Service Gratuity.........529,490. 00iii.Six (6) months compensation for unlawful redundancy....95,226. 00Total.........640,587. 0027. George Kamau Werui.One month’s notice........12,582. 00ii.Service Gratuity.........301,980. 00iii.Six (6) compensation for unlawful redundancy...75,492. 00Total.......390,054. 0028. Dickson Mwaniki Kahigai.One month’s notice..........12,582. 00ii.Service Gratuity..........181,888. 00iii.Six (6) months compensation for unlawful redundancy..... 75,492. 00Total.........269,962. 0029. John Mwihui.One month’s notice..........17,850. 00ii.Service Gratuity....... 171,360. 00iii.Six (6) months compensation for unlawful redundancy.........107,100Total..........296,310. 0030. Gerald Theuri Githinjii.One month’s notice.......12,582. 00ii.Off Days 30 Days...........11,614. 60iii.Leave Days 30 days.........11,614. 60iv.Service Gratuity.......... 181,188. 00v.Six (6) months compensation for unlawful redundancy.....75,492. 00Total.........292,491. 2031. Bernard Gachagoiv.One month’s notice..........12,582. 00v.Service Gratuity......150,990. 00vi.Six (6) months compensation for unlawful redundancy......75,492. 00Total 239,064. 0032. Stephen Maregwai.One month’s notice........12,582. 00ii.Service Gratuity.....181,188. 00iii.Six (6) months compensation for unlawful redundancy...75,492. 00Total 269,262. 0033. Albert Kibugui.One month’s notice........22,953. 00ii.Off days 99 days.........69,920. 65iii.Leave Days 30 days............26,484. 20iv.Service Gratuity....826,335. 00v.Six (6) months compensation for unlawful redundancy...137,718. 00Total....... 1,083,410. 8534. Elijah Nyingi Mathegei.One month’s notice........ 12,582. 00ii.24 Off days..........9,291. 70iv.Service Gratuity.........181,188. 00v.Six (6) months compensation for unlawful redundancy... 75,492. 00Total.....278,553. 70. James Karokii.One month’s notice..... 12,582. 00ii.Annual leave 30 days.....14,517. 70iii.Service Gratuity........211,386. 00iv.Six (6) months compensation for unlawful redundancy....75,492. 00Total.........313,977. 7036. Samuel Githinji Thirimai.One month’s notice.... 12,582. 00ii.64 Off days........ 24,630. 15iii.Service Gratuity.........120,792. 00iv.Six (6) months salary as compensation for unlawful redundancy.....75,492. 00Total.........233,496. 15Total of claim………………………Kshs.21,836,515. 00ii.The costs of the claim shall be borne by the Respondent.

DATED AND DELIVERED AT NYERI THIS 31ST DAY OF OCTOBER, 2022. D.K.NJAGI MARETEJUDGEAppearancesMiss Macharia for the Claimant Union.Mr. Waweru Macharia instructed by Waweru Macharia & Co.Advocates for the Respondent.