Ashton Apparels (EPZ) Limited v Mwoni & 15 others (Appeal E055 of 2022) [2023] KEELRC 1201 (KLR)
The bottom line
#Kenya's Employment Court confirmed that when a fixed term contract ends on its agreed date, employers owe no notice pay.
What this practically means
#Executive summary
#Key legal issues
#Whether notice is payable on the expiry of a fixed term contract
No notice is payable where the parties are bound by a fixed term contract with an agreed end date; the magistrate's award of 30 days' notice pay was in error.
The parties contracted under fixed term contracts running from January 2, 2019 to June 25, 2019 under Section 10(3)(c) of the Employment Act. Section 35 notice obligations apply to indefinite contracts; a fixed term ends by effluxion of time, and the appellant additionally notified the respondents the contracts would not be extended. The magistrate's contrary finding was therefore erroneous and the award of 20 days' pay in lieu of notice could not stand.
Whether a fixed term contract creates a legitimate expectation of renewal
A fixed term contract creates no legitimate expectation of renewal; the relationship terminates by effluxion of time absent mutual agreement otherwise.
Relying on Transparency International Kenya v Teresa Carlo Omondi, the court held that a fixed term contract has a start and end date and confers no legitimate expectation of renewal. The doctrine of legitimate expectation as explained in Communications Commission of Kenya v Royal Media Services belongs to public law and does not assist employees on fixed term contracts.
Duty of a first appellate court
As a first appeal, the court is required to re-evaluate the trial record and make its own findings and conclusions.
The respondents did not attend or participate despite service, so the appeal was unchallenged. Nonetheless, being a court of record exercising first appellate jurisdiction, the court addressed the appeal on the merits by re-evaluating the record of the trial court rather than allowing it merely for want of opposition.
Legal principles established
#- A fixed term contract does not create any legitimate expectation of renewal; unless otherwise mutually agreed, the employment relationship terminates by effluxion of time.
- Where parties are bound by a fixed term contract, no notice is due at its expiry.
Court orders
#- 1.The appeal is allowed as having merit
- 2.The judgment in Mombasa CM ELRC No 848 of 2019 is set aside/allowed as prayed (notice pay award overturned)
- 3.The appellant is awarded costs of the appeal
- On appeal from
- Magistrates' Court (CM ELRC), Mombasa
- CM ELRC No 848 of 2019
- Jurisdiction invoked
- First appeal from the magistrates' court (statutory appeal; specific provision not cited in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ashton Apparels (EPZ) Limited v Mwoni & 15 others (Appeal E055 of 2022) [2023] KEELRC 1201 (KLR)", Case Analysis (2023). Not stated in the judgment text. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1201/eng@2023-05-11
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.