Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
Caselaw
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedMemorandum of Claim filed 28th March 2012 (Employment and Labour Relations Court at Nyeri)· [2013] KEELRC 722 (KLR)

Grace Wangui Munyaka v Board Of Governors Nyeri Baptist High School [2013] KEELRC 722 (KLR)

Employment and Labour Relations Court
13 August 2013
NANelson Abuodha
2,702 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

#

A Kenyan court ruled that a teacher's so-called 'permanent job' was a fixed-term contract, but firing her for asking questions was still unfair — worth six months' pay.

What this practically means

#

Executive summary

#
The claimant, employed on 3rd September 2002 as an English/Literature teacher, sought a declaration that her termination was unlawful, underpayments of Kshs.540,841, twelve months' salary as compensation (Kshs.348,798), interest, and costs. She contended she was a permanent employee whose termination without a hearing breached section 41 of the Employment Act, 2007. The respondent asserted she was on fixed-term contracts which ended when she refused to sign a new contract, and that her notice pay and gratuity were paid. The court held that 'permanent employment' is a false notion; the claimant served under a fixed-term contract, and a deputy principal's bank-reference letter could not vary her appointment. However, by continuing her employment after the 2007 expiry, the 2006 contract was renewed by operation of law, running to about September 2013. The April 2011 letter declining renewal was therefore deemed an irregular and unfair termination: no contract was due for renewal, and the claimant acted reasonably in seeking clarification of backdated terms before signing, given the respondent's prolonged delay. The court reduced the termination to a normal termination with notice - already satisfied by the one month's salary in lieu of notice - and awarded six months' exit salary (April 2011) as compensation for unfair termination, subject to statutory deductions. The respondent was ordered to issue a certificate of service. Judgment dated 13th August 2013 at Nyeri, delivered by Nelson Abuodha J.

Key legal issues

#
01

Whether the claimant was a permanent employee

Holding

The court rejected the notion of permanent employment, holding that the claimant served under a fixed-term contract, and that the Co-operative Bank letter did not modify her appointment

Reasoning

Employment is contractual and contains stipulated entry and exit terms. The 'permanency' label is a distortion of open-ended contracts. The letter from the deputy principal to the Co-operative Bank was addressed to a third party, did not conform to the Employment Act requirements for a letter of appointment, and could not vary the 4th July 2006 contract under which the claimant served until 2011.

p. 4
02

Whether the declination to renew the contract was an irregular and unfair termination

Holding

The letter of 29th April 2011 was deemed an irregular and unfair termination because no contract was due for renewal and the claimant was reasonable in seeking clarification

Reasoning

By continuing the claimant in employment after the 2007 expiry, the 2006 contract was renewed by operation of law, running to about September 2013. The April 2011 renewal was therefore anomalous. The respondent's long delay in providing renewal contracts made its sudden urgency improper, and the claimant's request for clarification did not justify termination.

p. 5
03

Remedies for the unfair termination

Holding

Termination was reduced to a normal termination with notice (already satisfied) and six months' salary awarded as compensation for unfair termination

Reasoning

Because the contract should have ended on notice, the claimant, having received one month's salary in lieu of notice, was entitled to no more on that head. For unfair termination, six months' salary based on her April 2011 exit salary was considered reasonable, subject to statutory deductions, plus a certificate of service.

p. 5

Legal principles established

#
  • The notion of permanent employment is false; employment relationships are contractual and the correct distinction is between open-ended and fixed-term contracts
  • A fixed-term contract continued in operation by the parties' conduct after expiry is renewed by operation of law, and an employer cannot refuse a renewal when no contract is due for renewal
  • An employee who seeks clarification of contract terms before signing does not act unreasonably, and termination for insisting on clarification is unfair

Court orders

#
  1. 1.Termination reduced to a normal termination with notice; the one month's salary in lieu of notice already given satisfies the claimant under this head with no further entitlement
  2. 2.Respondent to pay the claimant six months' salary as compensation for unfair termination, calculated on her exit salary as at April 2011, subject to statutory deductions
  3. 3.Respondent ordered to issue the claimant with a certificate of service

Authorities

#

Legislation

  • Employment Act, 2007section 41
  • Employment Act, 2007section 35
  • Employment Act, 2007requirements for letter of appointment (general reference)
  • Employment Act (old, pre-2007)applied to the 2002 contract
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes under the Employment Act, 2007

Key timeline

#

Practical implications

#

Frequently asked questions

#

Later judgments citing this (2)

#

Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

#

Cite this brief

Caselaw, "Grace Wangui Munyaka v Board Of Governors Nyeri Baptist High School [2013] KEELRC 722 (KLR)", Case Analysis (2013). Memorandum of Claim filed 28th March 2012 (Employment and Labour Relations Court at Nyeri). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2013/722/eng@2013-08-13

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.