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ELRCPartially AllowedCause No. 2326 of 2016 (Consolidated with Causes 2327–2345 of 2016)· [2021] KEELRC 2289 (KLR)

Felix Luvanda Mwiritsa & 19 others v Cabinet Secretary, Ministry of Information, Communication and Technology, Public Service Commission & Attorney General [2021] KEELRC 2289 (KLR)

Employment and Labour Relations Court of Kenya
26 January 2021
2,716 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 ruled casual workers can't claim permanent jobs when contracts say so, but backdated termination letters made the dismissals unfair, entitling workers to compensation.

What this practically means

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Executive summary

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Twenty claimants, formerly casual employees of the Ministry of Information, Communication and Technology engaged on successive three-month contracts from as early as 2009, sued the Cabinet Secretary, the Public Service Commission and the Attorney General after their services were terminated on 31st October 2016. They sought declarations of legitimate expectation to permanent and pensionable employment, reinstatement or re-engagement, and in the alternative compensation including notice pay, leave pay, housing allowance, service pay, redundancy compensation and damages for unfair termination. The respondents contended that due procedure was followed, the contracts were expressly casual with no guarantee of permanency, and all outstanding wages were paid. The court framed three issues: whether the employment was subject to conversion to permanent and pensionable terms; whether the termination was unfair; and the remedies due. On the first issue, the court held the contracts were clear and unambiguous - expressly casual, terminable without notice, with no guarantee of permanency - and applying Jiwaji v Jiwaji and National Bank of Kenya v Pipelastic Samkolit, declined to rewrite them; Section 37 of the Employment Act applies only where the contract is silent. However, on the second issue, the court found the backdated termination letters deprived the claimants of any preparation period, rendering the terminations unfair. The court awarded each claimant compensation of three months' salary plus one month's salary in lieu of notice, less statutory deductions, with interest at court rates, and ordered the respondent to pay costs. The broader claims for conversion to permanent terms and reinstatement failed.

Key legal issues

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01

Whether casual employment contracts converted to permanent and pensionable terms under Section 37 of the Employment Act

Holding

The contracts were not subject to conversion to permanent and pensionable terms because their form was clear and unambiguous, expressly casual with no guarantee of permanency

Reasoning

The court examined the appointment letters and found they expressly stated the engagement was casual, terminable without notice, non-renewable and carrying no guarantee of permanent employment. Applying Jiwaji v Jiwaji and National Bank of Kenya v Pipelastic, the court held parties are bound by clear contractual terms. Section 37(1) applies only where the agreement is silent on features such as renewal and expiry.

p. 4
02

Whether the termination was unfair and unjustified

Holding

The termination was unfair because the termination letters were backdated and gave no period of preparation to exit employment

Reasoning

The termination letters were dated 14/10/2016, indicated the contracts expired on 30th September 2016, with payment up to 31st October 2016. The court found the anomaly of backdating the termination to 30th September 2016 while letters were forwarded on 31st October 2016, depriving the Claimants of any preparation period before exit.

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What remedies the Claimants are entitled to

Holding

Compensation of 3 months' salary each plus 1 month's salary in lieu of notice, less statutory deductions, with interest at court rates

Reasoning

Given the unfairness in issuing backdated termination letters, the court awarded each Claimant compensation equivalent to 3 months' salary and 1 month's salary as notice pay, less statutory deductions, plus interest at court rates from the date of judgment, and costs of the suit.

p. 4

Legal principles established

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  • Where a contract of employment is clear and unambiguous as to its casual nature and lack of guarantee of permanency, the court cannot rewrite it to convert it to permanent and pensionable terms
  • Backdated termination letters that provide no period of preparation to exit employment render a termination unfair

Court orders

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  1. 1.Claimants awarded compensation of 3 months' salary each and 1 month's salary as notice period
  2. 2.Respondent to pay costs of the suit

Authorities

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Legislation

  • Employment ActSection 37
  • Employment ActSection 35(1)(c)
  • Employment ActSection 45(2)
  • Employment ActSection 74
  • Employment ActSection 2
  • Public Service Commission Code of RegulationsSection E21

Cases cited (10)

  • Chemelil Sugar Company vs. Ebrahim Ochieng Otuon & 2 Others
    [2015] eKLR
  • Nanyuki Water and Sewerage Company Limited vs. Benson Mwiti Ntiritu and 4 Others
    [2018] eKLR
  • Walter Ogal Anuro vs. Teachers Service Commission
    [2013] eKLR
  • Lilian Nyaboke Nyaribo vs. Wireless Innovations Nairobi Limited
    [2013] eKLR
  • Alphonce Maghanga Mwachanya vs. Operation 680 Limited
    [2013] eKLR
  • Mary Mutanu Mwendwa vs. Ayuda Ninos De Africa-Kenya
    [2013] eKLR
  • Joshua Otiego Apiyo vs. Modern Coast Express Limited
    [2019] eKLR
  • Peter Wambugu Kariuki & 16 Others vs. Kenya Agricultural Research Institute
    [2013] eKLR
  • Jiwaji vs. Jiwaji
    [1968] EA 547
  • National Bank of Kenya vs. Pipelastic Samkolit (K) Limited & Another
    [2001] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Act (Cause filed in the ELRC)

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, "Felix Luvanda Mwiritsa & 19 others v Cabinet Secretary, Ministry of Information, Communication and Technology, Public Service Commission & Attorney General [2021] KEELRC 2289 (KLR)", Case Analysis (2021). Cause No. 2326 of 2016 (Consolidated with Causes 2327–2345 of 2016). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2021/2289/eng@2021-01-26

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