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ELRCPartially AllowedCause No 2216 of 2017· [2023] KEELRC 1749 (KLR)

Ole Kimanjoi v East African Portland Cement PLC (Cause 2216 of 2017) [2023] KEELRC 1749 (KLR)

Employment and Labour Relations Court
12 July 2023
2,787 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court ruled that ending a fixed-term employee's duties without reasons was unfair termination, entitling him to three months' notice pay.

What this practically means

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Executive summary

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The claimant, employed as Head of Human Resource and Administration on a five-year fixed-term contract running from September 17, 2012 to September 17, 2017, sued for salary in lieu of notice (Kshs.2,384,544/=) and 12 months' compensation (Kshs.9,538,176/=). He was released from duty effective May 12, 2017 after his request for renewal was declined, but was paid all dues including salary and gratuity for the unexpired period, totalling Kshs.7,385,796.28, in June 2017. The respondent maintained the contract lapsed by effluxion of time and all dues were paid, with no agreement to pay notice. The court framed two issues: whether the employment was unfairly terminated, and whether the respondent promised three months' salary in lieu of notice. It found the May 11, 2017 letter was in substance a termination letter - a firm board decision given without reasons or engagement - and that the claimant proved unfair termination on a balance of probabilities, applying the burden-of-proof principles in Nicholus Kipkemoi Korir v Hatari Security Guards Ltd. On the second issue, the court held the letter's promise to honour all contractual obligations entitled the claimant to three months' salary in lieu of notice, since no notice was given; the contra proferentem argument was unnecessary as the termination clause was unambiguous. However, 12 months' compensation was refused because the claimant suffered no loss, having been paid for the entire unexpired term. Judgment was entered for the claimant for three months' salary in lieu of notice, with costs and interest at court rates until payment in full.

Key legal issues

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01

Whether the claimant's employment was unfairly terminated

Holding

Yes - the letter of May 11, 2017 was a firm decision terminating the contract before expiry, gave no reasons, and provided no engagement with the claimant, amounting to unfair termination

Reasoning

Although the claim framed only non-payment of notice pay, the court found the May 11, 2017 letter directing the claimant to cease duty the next day bore the hallmark of a termination letter. It gave no reasons, the respondent did not engage the claimant before or after the decision, and did not respond to the claimant's counsel's letter. The claimant proved on a balance of probabilities that the contract, which could only be terminated per its terms and the Employment Act, 2007, was unfairly terminated.

p. 4
02

Whether the respondent promised to pay 3 months salary in lieu of notice

Holding

Yes - the respondent's letter promised to honour all contractual obligations, which include 3 months' notice or pay in lieu under the appointment letter, and no notice was in fact given

Reasoning

The court read the letter's undertaking that all contractual obligations under the claimant's terms and conditions of service would be fully honoured as encompassing the contractual entitlement to three months' notice or salary in lieu. This was consistent with the finding that the letter was a termination without notice. The clause itself was unambiguous, so the contra proferentem rule urged by counsel was unnecessary; however, the promise bound the respondent.

p. 6
03

Whether the claimant was entitled to 12 months' compensation

Holding

No - having been paid salary for the entire unexpired term, the claimant suffered no loss warranting compensation

Reasoning

The court found as a fact that the claimant was paid all dues including salary and gratuity for the unserved remaining period of the contract by June 2017, before the contract's expiry. Awarding compensation on top of full payment would amount to unjust enrichment and was not justified. Only the notice pay, founded on the unfair termination and the express promise, was merited.

p. 6

Legal principles established

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  • An employee claiming unfair termination bears the burden of proving his case even where the employer defends the claim; allegations on oath or in pleadings without evidence are insufficient
  • A fixed-term contract can only be terminated in accordance with its terms and the Employment Act, 2007; a letter directing the employee to cease reporting without reasons is a termination

Court orders

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  1. 1.Judgment entered in favour of the claimant against the respondent for three (3) month's salary in lieu of notice
  2. 2.Costs of this suit to the claimant
  3. 3.Interest at court rates till payment in full

Authorities

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Legislation

  • Employment Actsection 47(5)
  • Constitution of Kenya, 2010Article 159(2)(d)
  • Constitution of Kenya, 2010Article 48
  • Civil Procedure ActSection 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (2)

  • Nicholus Kipkemoi Korir v Hatari Security Guards Ltd
    (2016) eKLR
  • Alfred Ogenche Nchore V Kenya Kazi Services Ltd
    (2022) eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction over employment claims (Employment Act, 2007; claim for salary in lieu of notice under a fixed-term contract)

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, "Ole Kimanjoi v East African Portland Cement PLC (Cause 2216 of 2017) [2023] KEELRC 1749 (KLR)", Case Analysis (2023). Cause No 2216 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/1749/eng@2023-07-12

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