Malenya v Unga Limited (Cause 257 of 2017) [2022] KEELRC 1532 (KLR)
The bottom line
#A Kenyan court confirmed employers don't have to renew fixed-term contracts, and employees must prove unfair termination to win compensation.
What this practically means
#Executive summary
#Key legal issues
#Whether the claimant's employment was unfairly terminated
The claim failed; employment ended by effluxion of time of a fixed term contract, not termination, and the claimant failed to discharge his burden under section 47(5).
The court found material contradictions in the claimant's evidence: he initially denied knowledge of and signature on the June 24, 2016 contract but admitted in cross-examination signing it. The court also noted the coincidence between the contract expiry date and the allegation of oral termination. The respondent produced the contract showing a one-year fixed term ending June 30, 2017, with termination upon expiry without notice. The claimant failed to prove unfair termination.
Whether an employer is obliged to renew a fixed term contract
No obligation exists to renew a fixed term contract upon expiry; renewal is at the employer's discretion.
The contract dated June 24, 2016 ran for one year from July 1, 2016 to June 30, 2017 and provided for termination upon expiry without notice. The claimant worked the full term and was paid. Non-renewal did not amount to termination, and the claimant could not presume legitimate expectation of continuity of employment.
Legal principles established
#- In a claim for unfair termination of employment, the onus of proving unfair termination is on the employee while the onus of proving or justifying the reason for termination is on the employer (section 47(5), Employment Act).
- There is no obligation on an employer to renew a fixed term contract upon its expiry.
Court orders
#- 1.The claim is found without merit and is dismissed
- 2.The claimant to pay costs of the claim to the respondent
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment claims (Employment Act)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Malenya v Unga Limited (Cause 257 of 2017) [2022] KEELRC 1532 (KLR)", Case Analysis (2022). ELD ELRC 257 OF 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/1532/eng@2022-06-08
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.