THE ADVANTAGES OF AMICABLY SETTLING AN EMPLOYER AND EMPLOYEE DISPUTE (LABOUR DISPUTE) IN RWANDA, AND THE BASIC CONTENTS OF THE SETTLEMENT AGREEMENT
In Rwanda, an employer is interpreted to mean an individual, a public or private entity that employs one or more employees on a permanent or temporary basis, and an employee is defined as a person having agreed to work for an employer under a contract concluded between them, and in return for remuneration.
Whereas, for employer and employee dispute (labour dispute) in Rwanda, the law categorizes them in two forms, as defined below:
- collective labour dispute: this is a disagreement between one or more employers on the one hand, and some or all employees on the other hand, which arises from collectiveconvention or working conditions; and
- individual labour dispute: this is a disagreement between one or more employees and an employer as a result of a breach of the employment contract concluded between them
Does the Rwandan law recognize amicable settlement of individual and collective labour disputes?
Amicable settlement of individual labour disputes
The law enshrines that:
The employees’ representatives amicably settle individual labour disputes between employers and employees. If employees’ representatives fail to settle the disputes amicably, the concerned party refers the matter to the labour inspector of the area where enterprise is located. If the Labour Inspector of the area where an enterprise is located fails to settle the dispute due to the nature of the case or the conflict of interests, he/she refers the dispute to the Labour Inspector at the national level stating grounds to refer such a dispute.
If amicable settlement fails before a labour inspector of the area where an enterprise is located or before the Labour Inspector at the national level, the case is referred to the competent court. However, the court can decide not to receive the case after determining that steps for amicable settlement provided for by the law have not been followed.
Amicable settlement of collective labour disputes
Regarding Amicable settlement of collective labour disputes, the law provides that:
Collective labour disputes arising in the area of a labour inspector are notified to a labour inspector. Collective disputes extending beyond an area of a labour inspector not settled by the Labour Inspector at the national level or not settled due to their nature or the conflict of interests, are brought before the Minister in charge of labour.
Is there a time limit for one to claim or report a labor dispute or what is the prescription for the claim arising from work?
In Rwanda, the law enshrines that, a claim arising from work lapses after two (2) years starting from the date of the birth of the dispute giving rise to the claim. However, the exceptions to this time limit or prescriptions are:
- a party to the dispute is requested in writing to settle such a dispute;
- an employee or employer has referred the dispute to the employees’ representatives, labour inspector or court.
WHAT ARE THE ADVANTAGES OF AMICABLY SETTLING AN EMPLOYER AND EMPLOYEE DISPUTE (LABOUR DISPUTE)?
OPT-LAW Advocates has assisted and represented numerous clients to amicably settled their labour disputes, and in this publication, we have highlighted the advantages for settling a labour dispute
Following a claim or a lodged compliant on a labour dispute, the employer and employee will always have different intentions and targets in relation to their rights provided under the laws in relation to labour in Rwanda, and this can be undertaken and compromised by all parties involved so as to reach a resolution of their dispute matters without entering a courtroom.
With what we have experienced, most labour disputes/cases in Rwanda do settle out of Court and without the requirement for litigation. However, in some cases, a lawsuit cannot be avoided and the need to approach the Court for a resolution is imperative.
It must be appreciated that each labour dispute/case in Rwanda will differ according to the facts and applicable laws, and that there will always be advantages with respect to securing an out-of-Court settlement which we address further below.
Given the fact that there are always associated advantages to amicably settle an employer and employee dispute. If you’re faced with a labour dispute/, it is advisable, and always please reach out to a lawyer to assist and represent you with the process. This will prevent you from unnecessary legal blunders and regrets
There are several advantages associated with amicably settling an employer and employee dispute, which we outline below:
1. Cost-effective – Amicably settling a labour dispute is cost-effective because the employer and employee can reach a resolution without spending a lot of money. Generally, in practice we have observed that labour disputes resolved amicably save on unnecessary court fees and any other legal fees and expenses associated with litigation/court, including the costs of compiling evidence, engaging and inviting experts and other witnesses, as well as costs of attending different litigation/court sessions, i.e., pre-trial sessions, and hearing sessions.
2. A remedy to saving valuable time – As quoted by Ursula K. Le Guin that “One must work with time and not against it.“ Everyone knows how time is precious, and amicably solving a labour dispute is one of the way that an employer and employee can valuable time. In Rwanda, the law enshrines that a commercial matter will be solved within six (6) months, but because of case backlog, there are many cases that have taken years unsolved or facing unnecessary delays. Therefore, Amicably settling a labour dispute is remedy to save time and avoid unnecessary delays as compared to litigation.
3. Solution to unnecessary litgation associated stress.– Whereas amicabily settling a labour dispute is completely smooth because all parties will find a common ground for their rights, but litigation is more about each party strategizing to win the case before the competent court, and this only brings out the aggressiveness of each party, and always the end is unnecessary stress (this sometimes not only affects the litigants but also the family and the close people to the litigant), that can be avoid when the employer and employee settle the matter amicably.
4. Having majority control over the matter/case – When an employer and employee agree to settle their dispute amicably, they will of course decide on who will mediate or arbitrate, and they will also personally agree and develop the settlement agreement clauses. Hence, with amicable settlement, the employee and employer have the majority control over the matter, and this is not possible in litigation because the judge is not selected by the litigants and once a decision/judgement is reached by the court, the litigants must adhere to it.
WHAT ARE THE BASIC CONTENTS OF THE SETTLEMENT AGREEMENT?
Upon reaching an amicable settlement, the parties must clearly state the agreed terms in a settlement agreement, and we share what a are the basic contents of the settlement agreement. The settlement agreement must clearly state and provide:
date, particulars and parties entering the settlement agreement;
Recitals or the brief facts of the matter/case
Purpose of this Agreement
Payment Terms and Bank details
Timeframe of Payment
Warranties clause
Termination clause
Governing law
Dispute Resolution clause
Clause on Entire Agreement supremacy or superseding effect
Notice and Communications clause
Clause on Invalidity, Severability, Effective Date
We also advise the parties to always consider the following:
Although we have highlighted the advantages associated with amicably solving labour disputes, and contents of the settlement agreement. We strongly advise that it is always prudent to remain appraised of your entitlements, rights and obligations and receive advice tailored to your particular circumstances from an experienced lawyer to ensure that a fair outcome is reached.
Additionally, in case a settlement agreement cannot be reached, or it is inappropriate to engage in amicable settlement, proceedings may be commenced in a competent court in Rwanda
About the Author:
Adv. KALLAGI Arnold is Senior Partner at OPT-LAW Advocates. Arnold is Member of the East Africa Law Society; and Member of the Rwanda Bar Association. Arnold has over a decade plus experience as a corporate lawyer, and has advised, assisted and represented numerous clients in relation to commercial matters and litigation, and he is a skillful negotiator in disputes and other law related matters
Connect with Arnold on LinkedIn
Please note that this publication is not a substitute for professional legal advice. This article does not create an attorney-client relationship
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