Richard Muiruri Nduati v Buyline Industries Limited (Cause 344 of 2013) [2014] KEELRC 403 (KLR)
The bottom line
#A Kenyan worker who refused to renew his fixed-term contract lost his unfair dismissal claim but won service pay for his earlier years of service.
What this practically means
#Executive summary
#Key legal issues
#Whether the Claimant's employment was terminated unfairly or expired by lapse of the fixed term
There was no summary dismissal; the contract lapsed when the Claimant declined to sign a renewal, so the unfair termination claim fails
The court found the Claimant signed a fixed-term contract on 2nd January 2007 for one year, having earlier acquiesced to the change in employment terms from January 2006. Having signed fixed-term contracts and worked under them, he could not force the employer to revert to indeterminate terms. His refusal to sign a renewal meant the contract simply expired rather than being terminated.
Whether the Claimant merits service pay for pre-contract years
The Claimant served continuously for 8 years (1998 to end of 2005) and merits service pay at 15 days' salary per year, totalling Kshs. 24,277
Section 35 of the Employment Act 2007 was not in operation during the indeterminate-contract period, so its NSSF exclusion did not apply. The employer gave no reason for terminating the old indeterminate contract and introducing new ones without paying for creditable years of service. The court awarded 15 days' salary for each of the 8 years, payable within 21 days.
Legal principles established
#- Where an employer unilaterally converts an employee from indeterminate to fixed-term contracts without paying what is due for prior creditable years of service, the employee is entitled to service pay for those earlier years
- An employee who has acquiesced to fixed-term contracts and signed them cannot compel the employer to revert to indeterminate engagement; refusal to sign a renewal results in lapse of the contract, not summary dismissal
Court orders
#- 1.Respondent to pay the Claimant 15 days' salary for each of the 8 years completed in service, amounting to Kshs. 24,277, within 21 days of delivery of the Award
- 2.Each party shall meet its own costs of the litigation
- Jurisdiction invoked
- Reference to the Industrial Court over a dispute of unfair and unlawful termination of employment
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Richard Muiruri Nduati v Buyline Industries Limited (Cause 344 of 2013) [2014] KEELRC 403 (KLR)", Case Analysis (2014). Cause Number 344 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/403/eng@2014-06-27
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.