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ELRCDismissedConsolidated ELRC Causes (35 suits) at Nyeri, Lead Cause 132 of 2017 and others (Causes 131, 133, 134, 136, 140, 142, 143, 157 of 2017 among others)· [2019] KEELRC 1495 (KLR)

Hussein Oshe Mude & 34 others v Jianxi Zhongmei Engineering Construction Company Limited [2019] KEELRC 1495 (KLR)

Employment and Labour Relations Court
3 June 2019
3,400 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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Kenya's Employment Court ruled that workers hired for a fixed road project were not unfairly dismissed when the project ended, and dismissed all their benefits claims for lack of proof.

What this practically means

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Executive summary

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Thirty-five consolidated causes were brought by former employees of Jiangxi Zhongmei Engineering Construction Co. Ltd, which had contracted with KeNHA to upgrade the Marsabit-Turbi Road. The Claimants alleged wrongful, unprocedural and unfair dismissal and claimed salary in lieu of notice, gratuity, compensation for unfair termination, underpayment, annual leave dues, house allowance and Sunday underpayments, alleging breach of the Employment Act and a 2012 collective bargaining agreement brokered by their union. The Respondent maintained the Claimants were employed on fixed-term contracts tied to the project, that most left in 2014 and the rest were released on completion and handover in April 2015, that separation was mutually agreed with lawful dues paid, and that statutory deductions were remitted. Evidence was adduced by affidavit, with oral testimony from Gideon Boru Gobe (Cause 132 of 2017), who admitted payment at Kshs 60/- per hour, more than the Kshs 51/- he claimed, and acknowledged no rent receipts for accommodation he claimed to have rented. The court found the employment was fixed-term ending on completion of the project, evidenced by the taking over certificate dated 20th April 2015, so the reason for termination was valid under Section 43 of the Employment Act and termination by effluxion of time was not unfair. The underpayment, house allowance, overtime, annual leave, service pay and statutory deduction claims all failed for want of proof. The claims were dismissed with each party bearing their own costs.

Key legal issues

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01

Whether termination upon completion of a fixed-term project contract constitutes unfair termination

Holding

Termination was valid and not unfair; contracts ended on effluxion of time upon completion of the project evidenced by the taking over certificate

Reasoning

The court accepted the Respondent's evidence that the KeNHA contract ran from 5th April 2011 with an extension to completion on 20th April 2015, when the taking over certificate was issued. The Claimants' legitimate expectation was to serve only until the end of the road construction, not permanent employment. Their contracts automatically lapsed on completion, satisfying Section 43 of the Employment Act as a valid reason for separation.

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02

Whether the Claimants proved underpayment, house allowance and other terminal benefits claims

Holding

Claims failed for want of proof; the Claimants' own documents showed payment above the claimed rate and accommodation was provided at the site

Reasoning

The Claimant in Cause 132 testified he was paid Kshs 60/- per hour per his appointment documents, more than the Kshs 51/- claimed. No rent receipts were produced despite claims of renting accommodation in a remote area where the Respondent maintained a camp. His leveler role did not entail work beyond the 8 daylight hours, defeating the overtime claim, and no proof of non-remittance of statutory deductions was adduced.

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Legal principles established

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  • Fixed-term employment tied to a specific project ends upon completion of the project and such termination is not unfair termination under the Employment Act
  • A party alleging underpayment must produce payslips or documentary evidence of actual wages; mere assertion is insufficient

Court orders

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  1. 1.The 35 consolidated claims were dismissed in their entirety
  2. 2.Each party to bear their own costs

Authorities

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Legislation

  • Employment ActSection 35
  • Employment ActSection 35(6)
  • Employment ActSection 43
  • Employment ActSection 90

Cases cited (8)

  • Stephen Kamau Wanderi & Another v Gladys Wanjiku Kungu
    [2006] eKLR
  • Ali Kulo Godana & 8 Others v Jiangxi Zhongmei Engineering Construction Co. Ltd
    [2017] eKLR
  • Yusuf Jirmo Wario v Jiangxi Zhongmei Engineering Construction Co. Ltd
    ELRC No. 58 of 2016
  • Boniface Mulandi v Ali Barbours Restaurant Limited
    [2016] eKLR
  • Chege Jeremiah & 9 Others v Jiangxi Zhongmei Engineering Construction Co. Ltd
    [2019] eKLR
  • Peter Asuka v Mutungati Farmers Co-operative Society
    [2015] eKLR
  • Felix Munyoto v Tea Warehouses Limited
    [2016] eKLR
  • Grace Wangui Ngenye v Wilfred Kiboro & Another
    [2013] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act and labour dispute resolution (no specific provision cited in the judgment)

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, "Hussein Oshe Mude & 34 others v Jianxi Zhongmei Engineering Construction Company Limited [2019] KEELRC 1495 (KLR)", Case Analysis (2019). Consolidated ELRC Causes (35 suits) at Nyeri, Lead Cause 132 of 2017 and others (Causes 131, 133, 134, 136, 140, 142, 143, 157 of 2017 among others). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1495/eng@2019-06-03

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