Elema Guyo Elema & 14 others v Jiangxi Zhongmei Engineering Construction Co. Ltd [2019] KEELRC 298 (KLR)
The bottom line
#Kenya's Employment Court ruled that workers on a road project were not unfairly dismissed because their jobs legally ended when the project was completed.
What this practically means
#Executive summary
#Key legal issues
#Validity of the reason for termination
The Respondent established a valid reason for termination as the project contracts came to an end on completion and effluxion of time
The Respondent showed that its contract with KeNHA ran to April 2015 with a defects liability period to 2017. The Claimants could not remain employed on a road construction project indefinitely; staff were released as works were completed. Under Sections 43 and 45 of the Employment Act the employer must prove a valid and fair reason, and the court found that completion of the project made the staff surplus to requirement, satisfying that burden.
Fairness of the termination procedure
The terminations were not unfair because the contracts ended on effluxion of time upon completion of the project stages
The court reasoned that fixed-term/project employment ends when the project ends. None of the Claimants could anticipate working beyond the life of the project or remain employed indefinitely on a road construction project. As the contracts lapsed by effluxion of time and upon completion of the various stages of the project, the terminations were not unfair and no procedural violation arose.
Proof of underpayment and other monetary claims
The Claimants failed to prove underpayment, house allowance, overtime and leave dues as they produced no pay slips
The Claimants alleged underpayment of wages, unpaid house allowance, overtime for Sundays worked and untaken annual leave, but failed to attach or produce pay slips or other documentary evidence substantiating those claims. The Respondent denied the allegations and asserted it complied with the minimum wage requirements. In the absence of proof on a balance of probabilities, the monetary claims fell away.
Legal principles established
#- Termination on effluxion of time upon completion of a project, with a valid reason established, is not unfair termination under Sections 43 and 45 of the Employment Act
Court orders
#- 1.The consolidated claims are dismissed
- 2.Each party to bear their own costs
- Jurisdiction invoked
- Original employment and labour relations jurisdiction of the Employment and Labour Relations Court (Employment Act claims for unfair termination and terminal benefits)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Elema Guyo Elema & 14 others v Jiangxi Zhongmei Engineering Construction Co. Ltd [2019] KEELRC 298 (KLR)", Case Analysis (2019). Cause No. 56 of 2018 (consolidating Causes Nos. 55–69 of 2018). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/298/eng@2019-11-21
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.