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ELRCDismissedNot stated in the judgment as extracted· [2014] KEELRC 815 (KLR)

Samuel Chacha Mwita v Kenya Medical Research Institute [2014] KEELRC 815 (KLR)

Industrial Court of Kenya (Employment and Labour Relations Court)
3 February 2014
3,097 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The claimant, employed by the respondent since 1986 and most recently on a three-year fixed-term contract expiring on 30th November 2013, filed a Notice of Motion on 27th November 2013 seeking restraining orders against denial of access to his workstation and against termination pending hearing of his suit. He had requested renewal of his contract, but the respondent resolved to competitively advertise the position. The respondent opposed, contending that the claimant had resigned from permanent and pensionable terms in 2001, was re-engaged on successive fixed-term contracts with gratuity paid at each expiry, that the final contract was expressly a last extension, and that the decision whether to renew rested with the Institute. The court analysed the statutory definitions of a contract of service and applied section 10 of the Employment Act, holding that written contracts must be given their ordinary meaning. Relying on common law and South African authority, the court held that a fixed-term contract terminates automatically on its expiry date and such termination is not a dismissal occasioned by an act of the employer. The claimant's knowledge that the position would be competitively advertised, and the contract clause reserving re-employment decisions to the Institute, defeated any legitimate expectation of renewal. The court dismissed the application dated 27th November 2013, took exception to language in the respondent's Replying Affidavit and cautioned counsel on it, and ordered each party to bear their own costs. Judgment was delivered at Nairobi on 3rd February 2014 by M. Mbaru, Judge.

Key legal issues

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01

Effect of expiry of a fixed-term employment contract

Holding

A fixed-term contract ends automatically on the expiry date without any act of the employer and such termination is not a dismissal requiring due process

Reasoning

The court applied section 2 and section 10(3) of the Employment Act, noting that a fixed-term contract must state its end date. The claimant's contract ran from 1st December 2010 to 30th November 2013. The parties had envisaged termination three years earlier; the proximate cause of the termination was the arrival of the stated date, not an act of the employer. The court drew on common law and South African authority to this effect.

p. 3
02

Whether the claimant had a legitimate expectation of renewal

Holding

No legitimate expectation arose; the claimant knew his position was to be competitively filled and the contract terms gave the Institute discretion on re-engagement

Reasoning

Clause 2 of the agreement required the claimant to give notice of his desire to remain, after which the Institute would decide whether to offer further employment on mutually agreed terms. The claimant gave notice and the Institute declined. The claimant knew of the decision to competitively advertise the position. If the parties intended renewal, they had time and resources to amend the contract before expiry but did not.

p. 5
03

Whether the court can vary or extend a lapsed negotiated contract

Holding

The court cannot vary the terms of a contract between parties nor extend a contract that has lapsed

Reasoning

The respondent relied on Kyangavo v Kenya Commercial Bank Ltd and Muhia & Others v Kenya Power and Lighting Company Ltd for the position that contracts are made by parties and courts only interpret them. The court accepted that where a negotiated contract has lapsed, it cannot be varied for extension, and a contract of service is governed by its terms.

p. 2

Legal principles established

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  • A fixed-term contract terminates automatically on the expiry of the stated date unless the parties agree to renew it, and such termination is not necessarily a dismissal
  • Where there is a written contract, the court will construe it according to its terms under section 10 of the Employment Act unless there is ambiguity

Court orders

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  1. 1.The application dated 27th November 2013 is dismissed
  2. 2.Ms Ngetich is advised by the court to guide the deponent of the Replying Affidavit in future against demeaning language
  3. 3.Each party to bear their own costs

Authorities

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Legislation

  • Industrial Court Actsection 12(3)(i)
  • Industrial Court Procedure RulesRule 16
  • Employment Actsection 2; section 10; section 10(3)
  • Labour Relations Actsection 2
  • Labour Institutions Actsection 2

Cases cited (4)

  • Kyangavo versus Kenya Commercial Bank Ltd & Another
    Civil Case No. 428 of 2001 [2004] 1 KLR 126
  • Muhia & Others versus Kenya Power and Lighting Company Limited
    Case No. 620 of 2004 [2006] 1 KLR 498
  • SA Rugby (Pty) Ltd v CCMA & Others
    (2006) 27 ILJ 1041 (LC)
  • Kenya Plantation & Agricultural Workers Union versus Kenya Cuttings Ltd
    Cause No. 282 of 2010
Jurisdiction invoked
Section 12(3)(i) of the Industrial Court Act and Rule 16 of the Industrial Court Procedure Rules

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (1)

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

Cite this brief

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Cite this brief

Caselaw, "Samuel Chacha Mwita v Kenya Medical Research Institute [2014] KEELRC 815 (KLR)", Case Analysis (2014). Not stated in the judgment as extracted. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/815/eng@2014-02-03

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