Teachers have lost the 50-60 per cent pay increase awarded to them by the Employment and Labour Relations Court on June 30.
Five Court of Appeal judges nullified the award on Friday, saying the labour court had no jurisdiction to give the award.
They said the Salaries and Remuneration Commission's role ought to have been considered, ruling that its advice is binding as it is anchored in the Constitution.
The judges also said the labour court lacked jurisdiction to conduct conciliatory proceedings between the teachers' unions and their employer, the Teachers Service Commission.
The unions have said they will appeal the ruling to the Supreme Court.
More to follow.