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ELRCDismissedCause No 1574 of 2013· [2019] KEELRC 826 (KLR)

Abraham Isiaho & 10 others v Jamii Bora Kenya Limited & another [ [2019] KEELRC 826 (KLR)

Employment and Labour Relations Court of Kenya
20 September 2019
ANAbuodha J. N.
1,210 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 dismissed 11 workers' claims because they could not prove their fixed-term contracts were renewed verbally, underscoring the need for written renewals.

What this practically means

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Executive summary

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Eleven claimants, employed as promoters by the 1st respondent (originally Jamii Bora Trust, later Jamii Bora Kenya Ltd) on 1 September 2008 at a monthly salary of Kshs 10,000, claimed that when Jamii Bora Kenya was reconstituted into the 2nd respondent, Jamii Bora Bank Limited, in March 2010, they continued in employment under a mutual arrangement. Their written annual fixed term contracts expired on 31 August 2010. They alleged that director Mrs Ingrid Munro verbally told them to continue working, that they worked without pay for five months, and that they resigned in June 2011 out of frustration. The 1st respondent did not file a response. The 2nd respondent denied that the contracts were renewed, contending that renewals had to be in writing, that it was a separate legal entity, and that after the takeover of the 1st respondent's business by City Finance Bank the 1st respondent ceased to exist. The respondents' witness confirmed the last payments to the claimants were in October 2010 and that those retained were issued fresh contracts after fresh interviews. The court found the claimants' contracts were in writing and that, absent any written renewal or communication - and given the claimants' failure to produce resignation letters and the lack of clarity over which respondent employed them - it was more probable than not that the contracts expired in August 2010 and were not renewed. The claim was found without merit and dismissed with costs.

Key legal issues

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01

Whether the fixed term contracts were renewed verbally by director Ingrid Munro

Holding

The court found no renewal of the contracts; they expired on 31 August 2010

Reasoning

The claimants' contracts were in writing and provided for renewal in writing. The claimants produced no written renewal or written communication, nor resignation letters evidencing continued employment. In the absence of documentary evidence of renewal, the court held it was more probable than not that the contracts expired in August 2010 and were not renewed as alleged.

p. 2
02

Whether the 2nd respondent was the claimants' employer

Holding

The court noted a lack of clarity in the connection between the 1st and 2nd respondents and did not resolve the employer question in the claimants' favour

Reasoning

The 2nd respondent pleaded it was a separate legal entity and that the 1st respondent ceased to exist after takeover by City Finance Bank. The claimants' own NSSF statements showed employment by Jamii Bora Trust. The uncertainty weighed against the claimants' case of continued employment.

p. 2

Legal principles established

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  • Where employment contracts are in writing, a court will not readily find a renewal of fixed term contracts by verbal communication in the absence of a written contract or written communication

Court orders

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  1. 1.The claim is dismissed with costs
  2. 2.It is so ordered
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment claims (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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Cite this brief

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Cite this brief

Caselaw, "Abraham Isiaho & 10 others v Jamii Bora Kenya Limited & another [ [2019] KEELRC 826 (KLR)", Case Analysis (2019). Cause No 1574 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/826/eng@2019-09-20

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