Songole v Nairobi City Water & Sewerage Company (Employment and Labour Relations Petition E103 of 2022) [2023] KEELRC 2801 (KLR)
The bottom line
#Kenya's Employment Court confirmed that a fixed-term contract simply ends on its expiry date, and employers can revise HR policies without consulting every employee.
What this practically means
#Executive summary
#Key legal issues
#Whether unilateral revision of the HR manual violated the Petitioner's right to fair labour practices
No violation; the employer may revise its human resource policies without consulting all employees, and the Petitioner accepted and worked under the revised fixed 5-year term
The Petitioner signed an employment agreement on 13th February 2013 providing a 5-year fixed term and accepted its renewal on the same basis in 2017. The court held an employer need not consult all employees when amending its HR policy manual, and the Petitioner only objected in 2021 when the final term was about to expire.
Whether the Respondent created a legitimate expectation of renewal beyond the final term
No legitimate expectation arose; the 2017 renewal letter expressly stated the term was final
Applying the doctrine as articulated in Pharmaceutical Manufacturing, the court found no express, clear and unambiguous promise of renewal beyond five years. The 2017 renewal letter marked the term as 'final', defeating any claim of legitimate expectation.
Whether the Petitioner was discriminated against by introduction of term limits
No discrimination; the revision served the company prudently and applied to Functional Directors as a category
The court was persuaded the Respondent did not discriminate against the Petitioner and was entitled to revise employee contract terms where prudent. The Petitioner, a senior staff member who participated in or was aware of the HR manual review, never objected until 2021.
Legal principles established
#- A court will very sparingly interfere in the employer's entitlement to perform human resource functions
- An employee on a fixed-term contract needs no notice of termination as the contract terminates by expiry of its term
- Reliance on legitimate expectation requires an express, clear and unambiguous promise
- Where parties have a contract, the court enforces it rather than rewriting it
Court orders
#- 1.The petition is dismissed
- 2.Each party will meet their costs of the application and of the petition
- Jurisdiction invoked
- Original jurisdiction of the Employment and Labour Relations Court over employment and labour rights, including alleged violations of Articles 41, 47 and 50 of the Constitution
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Songole v Nairobi City Water & Sewerage Company (Employment and Labour Relations Petition E103 of 2022) [2023] KEELRC 2801 (KLR)", Case Analysis (2023). Petition dated 16th June 2022 (ELRC). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/2801/eng@2023-11-03
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.