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ELRCOtherCause (Memorandum of Claim) with Notice of Motion dated 17th December 2015 and Notice of Motion dated 25th February 2016 (amended 26th February 2016)· [2016] KEELRC 1190 (KLR)

Rajab Barasa & 4 others v Kenya Meat Commission [2016] KEELRC 1190 (KLR)

Employment and Labour Relations Court
17 March 2016
8,464 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~34 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court ruled that fixed-term contracts end automatically on expiry, with no expectation of renewal, and dues must be paid directly to employees.

What this practically means

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Executive summary

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This interlocutory ruling of the Employment and Labour Relations Court at Nairobi (M. Mbaru, J) dealt simultaneously with two applications: the five Claimants' Notice of Motion dated 17th December 2015 seeking injunctions restraining their termination, recruitment to their positions and continuation of the Respondent's staff rationalisation programme; and the Respondent's amended Notice of Motion seeking deposits of the Claimants' dues in Court and restraints on the Claimants accessing its premises or interfering with operations. The Claimants, managers of the Kenya Meat Commission on renewable fixed-term contracts, alleged their contracts were unlawfully terminated without hearing, that they were sent on forced leave while their positions were advertised, and that they were discriminatorily singled out. The court framed three issues: the Claimants' current employment status, and whether either application should succeed in the interim. The court held that a fixed-term contract terminates automatically on expiry and carries no expectation of renewal; the Claimants' contracts were only renewed by backdated letters dated 4th November 2015, and the interim periods served without written contracts altered their employment status under the Employment Act. The Claimants' application was declined, save that the 4th Claimant's subsisting contract must be served in full with all dues. The Respondent's application was allowed except for the deposit of dues in Court, since section 18(5) of the Employment Act requires wages earned and allowances due to be paid directly; the Claimants were allowed reasonable access to the premises. Discrimination claims were left for the full hearing. Costs were in the cause.

Key legal issues

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01

Status of the Claimants' employment upon expiry of fixed-term contracts

Holding

The fixed-term contracts lapsed and were renewed only by the backdated letters of 4th November 2015; they were not automatically renewed by operation of law; the periods served without written contracts changed the employment status

Reasoning

The court held a fixed-term contract ends automatically on its expiry date, and either party may then opt out or invite the other to a new contract. The Claimants admitted their contracts were renewed to specific expiry dates. The renewal letters were backdated, leaving interim periods unregulated, during which the employment relationship automatically changed since no written contracts existed. Claims for automatic renewal were therefore misconceived.

p. 10
02

Whether the interlocutory injunctions sought by the Claimants could issue

Holding

The injunctions were declined because the fixed-term contracts had lapsed or would lapse, no prima facie infringement was shown and no irreparable prejudice pending trial was established

Reasoning

Applying Giella v Cassman Brown and Mrao Ltd v First American Bank, the court found that upon issuance of the 4th November 2015 renewal letters a new employment relationship commenced, so a key element of the claim was lost. Discrimination allegations required evidence at a full hearing, and the staff rationalisation claims were speculative. The 4th Claimant's subsisting contract was to be served in full with all dues.

p. 11
03

Whether the Respondent's application to deposit salaries in Court and bar the Claimants from its premises should issue

Holding

The application was allowed except for the deposit of dues in Court; dues must be paid directly under section 18(5) of the Employment Act, and access to premises is only upon invitation or prior authority once contracts lapse

Reasoning

The court found no justification for depositing salaries in Court because section 18(5) of the Employment Act obliges the employer to pay all wages earned and allowances due directly upon termination by effluxion of time, with records retained under sections 73 and 74. With contracts lapsed, access to premises is by invitation or prior authority, though reasonable access like any member of the public should be allowed.

p. 13

Legal principles established

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  • A fixed-term contract terminates automatically on its expiry date and does not carry an expectation of automatic renewal
  • Where an employee continues working for over two months without a written contract after lapse of a fixed-term contract, the employment relationship automatically changes to a different regime under the Employment Act
  • An employer's human resource policy cannot override the written contract of employment
  • Taking of annual leave is a legal requirement under section 18 of the Employment Act and is not punishment

Court orders

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  1. 1.The application dated 17th December 2015 is declined save that the subsisting contract of the 4th Claimant shall be served in full with all due salaries, allowances, benefits where due paid to him directly
  2. 2.The application dated 25th February 2016 as amended is allowed save that all due salaries, benefits and allowances due to the Claimants under their fixed-term contracts shall not be deposited in Court and shall be paid directly to them as due
  3. 3.The Respondent shall allow the Claimants reasonable access to their premises and for the 4th Claimant full and open access pending due performance of his contract of employment
  4. 4.The access allowed shall be immediately withdrawn where in the assessment of the Respondent the Claimants engage in prohibited acts or criminal conduct
  5. 5.Costs shall be in the cause

Authorities

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Legislation

  • Constitution of Kenya, 2010Articles 27, 41, 47
  • Employment ActSections 2, 5, 10, 18, 18(5), 41, 45, 73, 74
  • Labour Relations ActSection 2 (definition of contract of service)
  • Employment and Labour Relations Court ActSection 12
  • Fair Administrative Action Actnot specified
  • Civil Procedure ActSections 1A, 1B, 3A
  • Civil Procedure RulesOrder 40 rule 7, Order 50 rule 15
  • Kenya Meat Commission Actnot specified

Cases cited (19)

  • Giella versus Cassman Brown & Co. Ltd
    (1973) CA 358
  • Esther Mbinya Musau versus National Bank of Kenya Ltd
    [2015] eKLR
  • Ruth Gathoni Ngotho-Kariuki versus Presbyterian Church of East Africa and Presbyterian Foundation
    [2012] eKLR
  • South Africa Clothing & Textile Workers union & J Heynes versus Cadema Industries (Pty) Ltd
    Case No.277 of 2005
  • Margaret A Achieng versus National Water Conservation & Pipeline Corporation
    [2014] eKLR
  • Peter Maroko Omondi versus Pandya Memorial Hospital
    [2014] eKLR
  • Severine Luyali versus Foreign Affair & International Trade & 3 Others
    [2014] eKLR
  • Max Sasoud Roshankar & Another versus Sky Aero Limited
    [2015] eKLR
  • Bernard Wanjohi Muriuku versus Kirinyaga Water & Sanitation Co. Limited & Another
    [2012] eKLR
  • Joab Mehta Oudia versus Coffee Development Board of Trustee
    [2014] eKLR
  • Alfred Nyungu Komungui versus the Bomas of Kenya
  • American Cyanamid Co. Ltd
    [1975] All ER
  • James Heather-Hayes versus African Medical and Research Foundation (AMREF)
    [2014] eKLR
  • The Siskina
    (1977) 3 All ER
  • Festus Kyalo Muthiani versus Kenyatta national Hospital
    (2013) eKLR
  • Chacha Mwita versus KEMRI & Others
    Cause No.1901 of 2013
  • Hesbon Ngaruiya Waigi versus Equatorial Commercial Bank Limited
    Cause No.60 of 2013
  • Collins osoro Lukhale versus AAA Growers Ltd
    Cause No.100 of 2012
  • Mrao Limited versus The First American Bank of Kenya
    [2003] KLR
Jurisdiction invoked
Section 12 of the Employment and Labour Relations Court Act

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (3)

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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, "Rajab Barasa & 4 others v Kenya Meat Commission [2016] KEELRC 1190 (KLR)", Case Analysis (2016). Cause (Memorandum of Claim) with Notice of Motion dated 17th December 2015 and Notice of Motion dated 25th February 2016 (amended 26th February 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2016/1190/eng@2016-03-17

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