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ELRCDismissedCause No 897 of 2016· [2019] KEELRC 1819 (KLR)

Shedrack Philip Kanyiri & 7 others v ME Corporation Limited [2019] KEELRC 1819 (KLR)

Employment and Labour Relations Court
9 April 2019
LNLinnet Ndolo
994 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 fixed term contracts simply end when they expire, unless the employee can prove a genuine expectation of renewal.

What this practically means

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Executive summary

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Eight claimants sued their employer for unfair termination of employment and failure to pay terminal dues, alleging they were dismissed on 31st May 2016 after refusing to sign new contracts incorporating deconsolidation of their salaries. They claimed notice pay, leave pay for 2 years, gratuity for varying periods of service, house allowance and underpayment, plus certificates of service and costs. The Respondent's case was that the claimants were employed on fixed term contracts whose last term ran from 1st February 2016 to June 2016, that the contracts expired by effluxion of time, and that terminal dues, including leave pay, were tabulated, paid and acknowledged. The Respondent produced fixed term contracts issued on 1st December 2015 running to 31st May 2016, the date the claimants themselves pleaded as their termination date. The court, citing Margaret A. Ochieng v National Water Conservation & Pipeline Corporation and Teresa Carlo Omondi v Transparency International Kenya, held that fixed term contracts carry no automatic expectation of renewal and that the burden of proving a legitimate expectation of renewal lies on the employee. No such expectation was demonstrated. The court also held that consolidated gross salaries ordinarily include house allowance, which the claimants' objection to deconsolidation confirmed. The claims for gratuity and underpayment were not proved. The entire claim was dismissed with each party bearing their own costs.

Key legal issues

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01

Whether employment ended by unfair termination or by effluxion of time of fixed term contracts

Holding

The Claimants were on fixed term contracts ending 31st May 2016; without a legitimate expectation of renewal, the claim for unfair termination fails

Reasoning

The Respondent produced fixed term contracts issued on 1st December 2015 running to 31st May 2016, the very date the Claimants pleaded as termination. The 1st Claimant admitted in evidence the contracts were 6-month fixed term contracts. No circumstances creating a legitimate expectation of renewal were shown, so the contracts ended by effluxion of time and terminal dues were tabulated and paid.

p. 3
02

Whether consolidated gross salary includes house allowance

Holding

Yes; where contracts provide for monthly gross salaries, house allowance is included

Reasoning

The Claimants' contracts provided for monthly gross salaries, which ordinarily incorporate house allowance. The Claimants' own objection to deconsolidation of their salaries confirmed the consolidated nature of the pay, defeating a separate claim for house allowance.

p. 3

Legal principles established

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  • Fixed term contracts carry no automatic expectation for renewal; only a demonstrable legitimate expectation, which the employee must prove, is an exception
  • Legitimate expectation of renewal may arise from an express contractual provision or from the employer's conduct in allowing work to continue after expiry; the burden is on the employee

Court orders

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  1. 1.The Claimants' entire claim fails and is dismissed
  2. 2.Each party to bear their own costs

Authorities

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Cases cited (2)

  • Margaret A. Ochieng v National Water Conservation & Pipeline Corporation
    [2014] eKLR
  • Teresa Carlo Omondi v Transparency International Kenya
    [2017] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment Act (first-instance employment claim); no specific provision quoted

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, "Shedrack Philip Kanyiri & 7 others v ME Corporation Limited [2019] KEELRC 1819 (KLR)", Case Analysis (2019). Cause No 897 of 2016. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2019/1819/eng@2019-04-09

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