Cheruiyot v Lutheran World Federation (Employment and Labour Relations Cause E036 of 2021) [2023] KEELRC 1370 (KLR)
The bottom line
#A Kenyan court ruled that letting a fixed-term work contract simply expire is not dismissal, but withheld allowances tied to the job still had to be paid.
What this practically means
#Executive summary
#Key legal issues
#Whether non-renewal of a fixed-term contract amounts to termination, redundancy or wrongful dismissal
It does not; the contract expired by effluxion of time and the letter of non-renewal was merely informative and courteous
The court construed the fixed-term contract: it was to run to December 31, 2020 and any extension required express written agreement. The Respondent never promised renewal; prior contracts were independent and established no pattern of automatic renewal. The Claimant knew programmes depended on donor funding. The December 7, 2020 letter was out of courtesy, not a termination notice, so no dismissal or redundancy occurred.
Whether the Claimant had a legitimate expectation of contract renewal
No; any such expectation was illegitimate, misplaced and imaginary
Applying the principle that he who alleges legitimate expectation must prove it, the court found no conduct, practice, express or implied promise of renewal. The contracts were independent and distinct, and the Claimant was aware the Djibouti programme was winding up and depended on donor funding.
Whether the Kshs 50,000/= monthly allowance was payable while the Claimant worked from Kenya during Covid-19
Yes; it was salary enhancement pegged to the Djibouti duty station, payable through payroll, unlike the USD 20 daily subsistence allowance
The court construed the contract clause plainly: the Kshs 50,000/= was an increment to compensate for relocation costs and inconvenience of a foreign station, processed through payroll, while the USD 20 per diem was for physical presence in Djibouti. Once the Claimant left Djibouti due to Covid-19, only the per diem ceased; the allowance remained due, totalling Kshs 450,000/= for April–December 2020.
Legal principles established
#- A fixed-term contract that is not determined in any other manner comes to its natural end by effluxion of time, and the employer is under no obligation to give notice of non-renewal.
- The burden of proving legitimate expectation lies on the party alleging it.
- A field allowance payable through payroll for a foreign duty station is pegged to the duty station, not physical presence there.
Court orders
#- 1.A declaration that the employer/employee relationship between the Respondent and the Claimant fairly and lawfully terminated by way of effluxion of time
- 2.The Claimant awarded Kshs 450,000/= in salary/allowance arrears unlawfully deducted and/or withheld
- 3.All other claims denied
- 4.Costs to the Claimant
- Jurisdiction invoked
- Article 162(2) of the Constitution establishing the Employment and Labour Relations Court (employment dispute; no express provision quoted in judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Cheruiyot v Lutheran World Federation (Employment and Labour Relations Cause E036 of 2021) [2023] KEELRC 1370 (KLR)", Case Analysis (2023). Statement of Claim dated June 23, 2021 (Employment and Labour Relations Cause). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1370/eng@2023-05-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.