Oyuga v Everett Aviation (Charter) Limited (Cause E037 of 2022) [2023] KEELRC 1136 (KLR)
The bottom line
#Kenya's Employment Court confirmed that a fixed term contract simply expires on its end date, so non-renewal is not unfair termination and pay gaps can be justified by different skills.
What this practically means
#Executive summary
#Key legal issues
#Whether the claimant's fixed term contract was unfairly terminated or expired automatically
The contract expired automatically on January 5, 2022 as agreed; no unfair termination.
The extension letter dated January 7, 2021 expressly stated the contract would terminate automatically on January 5, 2022. The January 5, 2022 letter was a reminder of non-renewal, not a termination notice. The contract did not require prior notice of non-renewal; the 3 months' notice clause applied only to termination before expiry. Legitimate expectation of renewal was not established.
Whether the claimant had a legitimate expectation of contract renewal
No legitimate expectation arose from the supervisor allocating work or from the prior renewal.
The supervisor had no mandate to enter into contracts of service. The claimant knew his contract was expiring on January 5, 2022. Renewal was by mutual agreement only, and no policy or notice-of-non-renewal clause (as in the authorities relied on by the claimant) existed here.
Whether the salary disparity between the claimant and Mr Vivian Mathews constituted discrimination
No discrimination; the disparity was justified.
The claimant was an Avionics Engineer with no prior helicopter experience and no Type Rating, while Mr Mathews was an Airframe and Power Plant Engineer with over 30 years' helicopter experience and Type Rating on the BK 117. The claimant did not rebut this evidence, and discrimination requires unjustified differential treatment of persons in similar circumstances.
Legal principles established
#- In fixed term contracts the issue of unfair termination does not arise because the contract expires automatically on the agreed date, and the employer has no obligation to give prior notice or a reason for non-renewal unless the contract so requires.
- Discrimination occurs only where persons in similar circumstances are treated differently without justification such as levels of responsibility, expertise, experience or skills.
Court orders
#- 1.Suit dismissed save for the unopposed prayer for a certificate of service.
- 2.Claimant to be issued with a certificate of service having completed exit clearance.
- 3.Each party to bear own costs.
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under Article 162(2) of the Constitution (employment and labour relations dispute, heard under the Employment Act, 2007)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Oyuga v Everett Aviation (Charter) Limited (Cause E037 of 2022) [2023] KEELRC 1136 (KLR)", Case Analysis (2023). Cause No E037 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1136/eng@2023-05-05
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.