Charles Maina Nyaruai v Kieni Constituency Development Fund Committee (Cause 79 of 2014) [2014] KEELRC 1477 (KLR)
The bottom line
#Kenya's Employment Court ruled that firing a fixed-term employee early means paying for the months left on the contract.
What this practically means
#Executive summary
#Key legal issues
#Whether the circular dated 24.06.2013 applied to the claimant's service
It did not apply; it was issued after the claimant's employment commenced and was never incorporated into his contract.
The claimant was employed by letter dated 30.06.2011, nearly two years before the circular. At termination, the circular's provisions had not been incorporated into the contract. The respondent's witness testified the circular was to apply to future cases and that the claimant's employment was governed by the letter he signed. Retroactive application was therefore rejected.
Whether the claimant's contract automatically renewed into the 3rd year
Yes, by conduct of the parties, despite the contract providing for a one-year renewable term.
The letter of appointment provided a one-year renewable contract. The claimant served 2 years and one month without any express renewal documentation. In the absence of other material, the court inferred renewal by conduct, meaning the claimant remained on a subsisting fixed-term into the 3rd year when termination occurred.
Whether the claimant was entitled to pay for the 11 unexpired months of the 3rd year
Yes; the termination was premature and in breach of the agreed term of service, entitling him to Kshs. 165,000.00 at Kshs. 15,000.00 per month.
Following Onesmus Makau J.'s decision in Mwanajuma Juma Kunde v Kaps Municipal Parking Services Ltd, where salary for the unexpired fixed term was awarded, the court held the termination unfair because it was premature and breached the agreed term. It awarded 11 months' salary at the contractual rate of Kshs. 15,000.00 per month.
Legal principles established
#- A fixed-term contract may renew automatically by conduct of the parties even absent express written renewal.
- A circular or policy issued after an employment contract was made does not apply retroactively unless incorporated into the contract.
- Premature termination of a fixed-term contract entitles the employee to salary for the unexpired period of the contract.
Court orders
#- 1.The respondent to pay the claimant Kshs. 165,000.00 by 1.2.2015 and, in default, interest at court rates to be payable until full payment
- 2.The respondent to pay the claimant's costs of the suit
- Jurisdiction invoked
- Original jurisdiction of the Employment and Labour Relations Court over the memorandum of claim filed 19.06.2014
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Charles Maina Nyaruai v Kieni Constituency Development Fund Committee (Cause 79 of 2014) [2014] KEELRC 1477 (KLR)", Case Analysis (2014). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2014/1477/eng@2014-12-19
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.