Masiga & 15 others v Menengai Farmers Limited (Civil Appeal E069 of 2021) [2022] KEELRC 4140 (KLR)
The bottom line
#Kenya's Employment Court confirmed that when a fixed term contract expires, workers cannot claim unfair termination or revived old claims.
What this practically means
#Executive summary
#Key legal issues
#Nature of employment - whether seasonal fixed term contracts
The appellants were lawfully engaged on seasonal/fixed term contracts, the last of which expired on October 31, 2019, and the trial court's finding to that effect was correct
Under section 10(3)(c) of the Employment Act a fixed term contract is lawful, and under section 18 the employer may issue seasonal/piece-work contracts. The employer filed the term contracts as records, and the appellants declined to sign new contracts when offered. On the employer's records the trial court correctly found the appellants last served under term contracts which came to an end.
Unlawful deductions from wages
All deductions (PAYE, NSSF, NHIF, union dues, salary advances and sacco payments) were lawful under sections 17 and 19 of the Employment Act and the CBA
Statutory deductions are a legal requirement; union dues are deducted pursuant to section 19 as authorised by the CBA; salary advances and payments to a sacco where the employee is a member are permitted under section 19(1). The court examined the payment statements and found the deductions lawful and justified.
Annual leave and rest days pay
No claim lay because leave was pro-rated and paid under each term contract; section 28 on allocation of annual leave does not apply to completed fixed term contracts
The payment statements and wage schedules show pro-rated leave paid for each term contract. For each day worked under a term contract there is payment, so rest days pay does not arise. Section 28 applies to indefinite employment, not completed fixed terms.
Unfair termination
There was no unfair termination because the fixed term contracts expired by effluxion of time
Fixed term contracts carry no rights, obligations or expectations beyond the date of expiry; where a contract lapses there is no declaration of unfair termination. The appellants declined to sign new contracts and the last contract expired on October 31, 2019.
Limitation on claims for 1997-2014 period
Claims relating to the period 1997 to 2014 are time barred under section 90 of the Employment Act, suit having been filed on January 17, 2020
Section 90 imposes a three-year limitation period. Employment had been converted to term contracts that started and ended on the agreed period; urging a case going back to 1997-2014 ignores mandatory provisions of the law and cannot be revived on appeal.
Legal principles established
#- On a first appeal the court re-evaluates the evidence and arrives at its own independent conclusions while giving allowance to the trial court's advantage of hearing the parties
- The employer has the legal duty to keep work records, which remain the true reflection of the employment relationship unless otherwise proved under section 10(6) and (7) of the Employment Act
- Fixed term contracts are a lawful and legitimate mode of employment and carry no rights beyond the date of expiry
- Claims outside the three-year limitation period under section 90 of the Employment Act cannot be revived through an appeal
Court orders
#- 1.The appeal is found without merit and is hereby dismissed
- 2.Costs to the respondent
- On appeal from
- Nairobi CMELRC (Magistrates' Court)
- Nairobi CMELRC 30 of 2020
- Jurisdiction invoked
- First appeal under the Employment and Labour Relations Court's appellate jurisdiction (Employment Act, 2007 and Employment and Labour Relations Court Act) - not expressly cited
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Masiga & 15 others v Menengai Farmers Limited (Civil Appeal E069 of 2021) [2022] KEELRC 4140 (KLR)", Case Analysis (2022). ELRC Appeal from Nairobi CMELRC No. 30 of 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2022/4140/eng@2022-04-04
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.