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ELRCDismissedCause Number 642 of 2015 (mother file, consolidated)· [2016] KEELRC 347 (KLR)

Lucy Wanja Ireri & another v Kenya Suitcase Manufacturers Limited [2016] KEELRC 347 (KLR)

Employment and Labour Relations Court
25 November 2016
JRJames Rika
1,457 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Employment Court confirmed that when a fixed-term contract simply expires, the employee — not the employer — must prove unfair termination to win compensation.

What this practically means

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Executive summary

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Two claimants, general labourers, sued the respondent alleging unfair and unlawful termination of their employment and claiming notice pay, accrued annual leave pay, service pay and twelve months' salary as compensation. The claims were consolidated with Cause Number 642 of 2015 as the mother file and, by consent, determined on pleadings, documents and submissions. The respondent maintained the claimants were engaged on successive fixed term contracts, the last running from 1st May 2015 to 1st June 2015, which simply expired and were not renewed at management's sole discretion under clause 3; terminal dues were paid on expiry. The Court found the claimants' pleadings and submissions incoherent and internally inconsistent on dates of service. Applying Section 47(5) of the Employment Act 2007, it held the burden of proving unfair termination rested on the employees, who failed to discharge it. The claimants did not challenge the expiry of their fixed term contracts, the management's discretion on renewal, or the independence of each contract, and did not plead legitimate expectation of renewal. Notice pay and compensation were rejected as the contracts lapsed by effluxion of time. Service pay was refused because the claimants were subscribed to the N.S.S.F under Section 35(6). Annual leave pay was refused on the strength of pay slips and leave records showing pro-rata payment. Both claims were dismissed with no order on the costs.

Key legal issues

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01

Whether the fixed term contracts were terminated unfairly

Holding

No; the contracts expired by effluxion of time and the Claimants failed to prove unfair termination.

Reasoning

The Claimants bore the burden under Section 47(5) of the Employment Act to prove unfair termination. They pleaded termination without cause or notice but did not engage with the signed fixed term contracts expiring 1st June 2015, did not challenge the management's sole discretion on renewal, and did not plead legitimate expectation of renewal. The Court could not find the Respondent terminated the contracts.

p. 3
02

Entitlement to notice pay, service pay, leave pay and compensation

Holding

All prayers rejected: no notice payable on expiry; N.S.S.F subscription bars service pay; leave was paid pro-rata.

Reasoning

Fixed term contracts lapsed on their own terms without need for notice. Pay slips showed N.S.S.F subscription, making the Claimants ineligible for service pay under Section 35(6). Leave records and pro-rata leave payment for May 2015 disproved the claim for accrued leave pay. Compensation presupposed unfair termination, which was not established.

p. 4

Legal principles established

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  • The burden of proving unfair termination rests on the employee.
  • An employer cannot be called upon to justify non-renewal or lapse of a fixed term contract.

Court orders

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  1. 1.The Claims are dismissed with no order on the costs

Authorities

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Legislation

  • Employment Act 2007Sections 35(6), 41, 43, 45, 47(5)

Cases cited (1)

  • Mombasa Apparels [EPZ] Limited v. Tailors & Textiles Workers Union
    Cause Number 946 of 2015
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act 2007

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Lucy Wanja Ireri & another v Kenya Suitcase Manufacturers Limited [2016] KEELRC 347 (KLR)", Case Analysis (2016). Cause Number 642 of 2015 (mother file, consolidated). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/347/eng@2016-11-25

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