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ELRCDismissedMemorandum of Claim dated November 19, 2020· [2023] KEELRC 15 (KLR)

Bakhwenya v International Institute of Rural Reconstruction (Cause E6478 of 2020) [2023] KEELRC 15 (KLR)

Employment and Labour Relations Court
19 January 2023
LNLINNET NDOLO
1,003 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
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The bottom line

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A Kenyan court ruled that a fixed-term contract simply ends on its expiry date, so an employee whose contract was not renewed was not unfairly terminated.

What this practically means

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Executive summary

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The Claimant, employed by the Respondent from February 1998 and serving under renewable fixed term contracts from 2004, sued for unlawful and unfair termination after his last contract, running from January 1, 2020, expired on June 30, 2020 without renewal. He sought one month's notice pay, pay in lieu of untaken off days, 12 months' salary as damages, a pension deduction of Kshs 162,182.83, and a certificate of service. The Respondent maintained that the contract simply came to an end, that notice of non-renewal was issued on May 21, 2020 on account of declining funding, that leave days had been exhausted following a Covid-19 staff meeting resolution, and that the pension deduction was authorised in writing to recover an outstanding medical advance. The court framed two issues: whether the Claimant proved unlawful termination, and whether he was entitled to the remedies sought. Relying on authority that a fixed term contract terminates on its end date with no automatic expectation of renewal, the court found the contract had ended by effluxion of time with due notice, so neither damages nor notice pay was due. The leave claim was unproved, and the pension deduction was covered by the Claimant's written authorisation. The entire claim was dismissed with each party bearing their own costs.

Key legal issues

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01

Whether the termination of the Claimant's employment was unlawful

Holding

There was no termination; the fixed term contract expired by effluxion of time and the Claimant was duly notified of non-renewal

Reasoning

The court found it undisputed that the Claimant was serving on a fixed term contract from January 1, 2020 to June 30, 2020. Relying on settled authority on fixed term contracts, the court held that such contracts end on the expiry date without automatic expectation of renewal. The letter of May 21, 2020 gave notice of non-renewal, so no termination occurred and damages were unwarranted.

p. 3
02

Whether the Claimant was entitled to the remedies sought

Holding

None of the heads of claim was proved or had basis; all were dismissed

Reasoning

Damages for unlawful termination and notice pay failed because the contract expired naturally. Leave days claim was unproved. The pension deduction was covered by the Claimant's written authorisation to recover an outstanding advance of Kshs 160,561 for medical expenses. The entire claim was consequently dismissed.

p. 3

Legal principles established

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  • A fixed term contract terminates on the end date and there is no automatic expectation of its renewal

Court orders

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  1. 1.The Claimant's entire claim is dismissed
  2. 2.Each party will bear their own costs

Authorities

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Cases cited (2)

  • Samuel Chacha Mwita v Kenya Medical Research Institute
    [2014] eKLR
  • Margaret Ochieng v National Water Conservation & Pipeline Corporation
    [2014] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment disputes (Employment and Labour Relations Court Act; Employment Act)

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, "Bakhwenya v International Institute of Rural Reconstruction (Cause E6478 of 2020) [2023] KEELRC 15 (KLR)", Case Analysis (2023). Memorandum of Claim dated November 19, 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/15/eng@2023-01-19

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