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ELRCPartially AllowedCause No. 372 of 2015· [2020] KEELRC 1775 (KLR)

Stanley Kiptanui Bii v Catholic Diocese of Nakuru [2020] KEELRC 1775 (KLR)

Employment and Labour Relations Court of Kenya
23 January 2020
3,235 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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What this practically means

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Executive summary

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The claimant, employed by the respondent at Baraka Agricultural College in December 1986 as a lecturer and later Deputy Principal, was transferred in April 2001 to the Catholic Diocese of Nakuru Agricultural Programme with his benefits to be transferred to the Diocese. He was thereafter engaged on successive fixed term contracts, the last expiring 30th September 2014, and left employment on 26th October 2015. He claimed September and October 2015 salaries, 4 months' pay and gratuity under his 1998 appointment letter, annual leave for 2014/2015, and compensation for unfair labour practice, contending he was retained on short term contracts in breach of sections 10 and 37 of the Employment Act to edge him out of employment. The respondent maintained the claimant consented to a new pension scheme with Britam, was notified of contract end in August 2015, and that the claims should be dismissed with costs. The court framed two issues: the nature of the employment and whether the remedies were due. It held that transfer is the employer's prerogative; that fixed term contracting is lawful and section 37 applies only to verbal and casual employment; and that upon signing the 2005 fixed term contract the claimant was bound by its terms, rendering claims under the 1998 letter time barred under section 90. However, the respondent filed no contract covering the period after September 2014, so the claim for September and October 2015 salary and 51 days' leave pay succeeded. Compensation and 1998-based dues failed. A deduction of Ksh.208,365 was ordered for the claimant's continued occupation of the respondent's residence. A certificate of service was ordered issued, and each party to bear own costs.

Key legal issues

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01

Nature of the employment relationship - whether continuous employment under the 1998 letter of appointment or fixed term contracts

Holding

The claimant's employment changed fundamentally upon signing the fixed term contract commencing 1st January 2005; he became bound by those terms and cannot claim continuous employment under the 1998 letter of appointment. Claims based on the 1998 terms are time barred.

Reasoning

The court held that section 10 of the Employment Act allows written contracts and section 13 allows variation by mutual agreement. The claimant signed and consented to the term contracts which were fundamentally different from the 1998 letter. He was bound by their terms, and any grievance about the change should have been raised under the limitation provisions of section 90. Fixed term contracting is lawful and section 37 applies only to verbal and casual employment.

p. 4
02

Whether employment ended on 31st August 2015 (respondent's position) or 26th October 2015 (claimant's position)

Holding

Since the respondent filed no written contract covering the period after the contract ending 30th September 2014, the claimant's claim for salary for September and October 2015 is unchallenged; he worked until 26th October 2015.

Reasoning

The respondent did not file notice of contract end. The claimant filed handing over notes signed on 26th October 2015. Without any written contract filed under section 10(7) of the Act covering the period after expiry of the contract ending 30th September 2014, the claims for that period stand unchallenged, entitling the claimant to two months' salary at Ksh.32,760.80 per month.

p. 4
03

Annual leave for 2014/2015

Holding

The claim for annual leave is justified; the claimant is awarded 51 days' leave pay of Ksh.48,312 under section 28 of the Act.

Reasoning

The claimant took his last annual leave in November/December 2013. With no work records or written contract covering the 2014/2015 period to contradict the claim, the court computed 30 days under the contract ending 30th September 2014 and 21 days for the employment ending 26th October 2015, based on basic pay of Ksh.28,419.

p. 5
04

Deduction for continued occupation of the respondent's residence

Holding

The house allowance benefit of Ksh.208,368 for 48 months of continued occupation must be deducted from the dues, under section 19 of the Employment Act.

Reasoning

The claimant remained in the respondent's residence and retained its property after employment ended. Since his wage was all-inclusive with a house allowance of Ksh.4,341, the court treated the value of continued occupation for 48 months up to the hearing date as an overpayment deductible under section 19 of the Act.

p. 4

Legal principles established

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  • Transfer of an employee between stations, departments or places of work is the prerogative of the employer
  • Issuance of fixed term contracts is a lawful and legitimate mode of employment; section 37 of the Employment Act applies to verbal and casual employment, not written contracts under section 10
  • A fixed term contract terminates on its sunset date unless extended in terms stated in the contract; a court cannot rewrite freely negotiated contract terms
  • An employee who consents to and signs a fixed term contract is bound by its terms and cannot rely on the terms of a previous appointment letter

Court orders

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  1. 1.Salary due for September and October 2015 at Ksh.65,520.00
  2. 2.Payment in lieu of taking leave at Ksh.48,312.00
  3. 3.Payments (a) and (b) to be paid less Ksh.208,365.00 owing to the respondent for failure to vacate the allocated residence, in accordance with section 19 of the Employment Act, 2007
  4. 4.The claimant shall clear with the respondent and hand over all property belonging to the respondent in his possession
  5. 5.A certificate of service shall issue in accordance with section 51 of the Employment Act, 2007
  6. 6.Each party shall bear own costs

Authorities

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Legislation

  • Employment Act, 2007section 10
  • Employment Act, 2007section 10(2)(h)
  • Employment Act, 2007section 10(7)
  • Employment Act, 2007section 13
  • Employment Act, 2007section 17
  • Employment Act, 2007section 18
  • Employment Act, 2007section 19
  • Employment Act, 2007section 28
  • Employment Act, 2007section 37
  • Employment Act, 2007section 51
  • Employment Act, 2007section 90
  • Employment Act Cap 226 (repealed)

Cases cited (5)

  • Anne Wairimu Kimani versus Kenya Agricultural Livestock Research Organisation (KALRO)
    [2017] eKLR
  • Joseph Makau Munyao & 4 others v Kenya Ports Authority & another
    [2016] eKLR
  • National Water Conservation & Pipeline Corporation versus Jayne Kanini Mwanza
    Civil Appeal No. 178 of 2014 (UR)
  • Amatsi Water Services Company Limited versus Francis Shire Chachi
    [2018] eKLR
  • SA Rugby (Pty) Ltd vs CCMA & Others
    (2006) 27 ILJ 1041 (LC)
Jurisdiction invoked
Employment and labour relations jurisdiction of the Employment and Labour Relations Court under Article 162(2) of the Constitution (employment cause filed under the Employment Act, 2007)

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, "Stanley Kiptanui Bii v Catholic Diocese of Nakuru [2020] KEELRC 1775 (KLR)", Case Analysis (2020). Cause No. 372 of 2015. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2020/1775/eng@2020-01-23

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