Baraza v Alice Dale Limited (Civil Appeal E132 of 2021) [2023] KEELRC 2042 (KLR)
The bottom line
#Kenya's Employment Court confirmed that when a fixed term contract simply expires, an employer owes no notice, hearing, or severance pay.
What this practically means
#Executive summary
#Key legal issues
#Nature of the employment relationship - fixed term or continuous
The appellant was employed on successive fixed term contracts, the last expiring on 25/2/2020 without renewal; termination was by effluxion of time and not by redundancy
The respondent produced six signed contracts spanning 26/11/2017 to 25/2/2020 with gaps between them, corroborating evidence that the appellant was engaged as and when required. The trial magistrate's finding on this was correct and was affirmed.
Entitlement to notice pay, severance pay and a hearing on non-renewal of a fixed term contract
None of these was due; Sections 36, 41, 43, 44 and 45 of the Employment Act do not apply to expiry of a fixed term contract, and there was no contractual clause requiring reasons or a hearing
Following Bernard Wanjohi Muriuki v Kirinyaga Water and Sanitation Company Limited, the only reason required for non-renewal is that the term has come to an end. The claim that the termination was a redundancy was not proved.
Applicable minimum wage order
The agricultural wage order (Legal Notices No. 111 of 2017 and No. 3 of 2018) applied, not the general wage orders relied on by the appellant; the salary of Kshs.8,500 to Kshs.10,000 satisfied the applicable minimum wage
The respondent's memorandum and articles of association showed its main objective was farming and agriculture. The watchman's wage under the agricultural orders was Kshs.7,409 and Kshs.7,779.45 for the relevant periods, which the appellant's pay exceeded.
Protective Security Services wage order
The court noted, without deciding, that the security services wage order may prevail over the agricultural wage order where its terms are better, and provides for gratuity at 18 days' salary per period served
The issue was not raised before the trial court or in the appeal, so the court declined to make any determination on it, merely guiding labour officers conciliating matters in the security sector.
Legal principles established
#- An employer has no obligation to give reasons for non-renewal of a fixed term contract; effluxion of time suffices unless the contract requires additional justification
- On a first appeal the court re-evaluates the evidence and draws its own conclusions while making allowance for not having seen or heard the witnesses
Court orders
#- 1.The appeal is dismissed in its entirety
- 2.Each party to meet their own costs of the suit before the trial Court and this Court
- On appeal from
- Senior Resident Magistrate's Court, Limuru
- Not stated in the judgment
- Jurisdiction invoked
- First appeal from the magistrate's court (not expressly stated; appeal against the judgment of Hon. C.W. Mugor, SRM, delivered 30/9/2021)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Baraza v Alice Dale Limited (Civil Appeal E132 of 2021) [2023] KEELRC 2042 (KLR)", Case Analysis (2023). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2042/eng@2023-08-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.