Mwanza & another v Manpower Networks Limited (Cause 1989 of 2017) [2024] KEELRC 43 (KLR)
The bottom line
#Kenya's Employment Court ruled that a fixed term contract simply ends when it expires, and workers claiming unfair termination must prove it with actual evidence.
What this practically means
#Executive summary
#Key legal issues
#Whether termination of the fixed term contracts was unfair
Claimants failed to prove that the text message of 23rd August 2017 was a termination notice rather than notification of the impending lapse of the contracts; unfair termination was not proved.
The contract was scheduled to end on 31st August 2017 and the message was sent on 23rd August 2017. Neither party produced the actual message, so the court could not infer whether the Respondent unfairly terminated the employment or merely notified the Claimants of the impending lapse and exit terms. Applying Sections 107 and 108 of the Evidence Act, the burden lay on the Claimants, and the finding was reinforced by the Court of Appeal's dictum that fixed term contracts carry no expectations beyond expiry.
Status of the Claimants' employment - piece-rate or fixed term
The documentary evidence established fixed term contracts independent of tonnage loaded, with remuneration pegged at not less than a general worker's minimum wage.
The contracts provided for a minimum tonnage equivalent to or above the minimum wage of a general worker, explaining the varying monthly amounts shown in payslips. NSSF statements, payslips, and tax and NHIF deductions confirmed employment. The Respondent did not contest the payslips. The totality of the documentary evidence showed fixed term employment notwithstanding variable pay.
House allowance entitlement
House allowance was awarded at 15% of basic salary for the duration of the last contract, as the Respondent neither paid it nor provided housing.
Section 31 of the Employment Act, 2007 obliges an employer to provide housing or a house allowance. RWI admitted the contract made no provision for house allowance. Although clause 7 provided a minimum wage of a general worker, the payslips showed basic salary equal to gross salary with no housing component. The court awarded 15% of the average basic salary for June to August 2017.
Salary for August 2017
Awarded because the Respondent tendered no proof that it paid the August 2017 salary or pending dues.
RWI Mr. James Tsuma testified that the August 2017 salary was to comprise terminal dues but admitted he had no evidence of payment, and explained he did not work in accounts. The court therefore awarded the August 2017 salary if the same was not paid.
Legal principles established
#- A fixed term contract carries no rights, obligations or expectations beyond its date of expiry
- An employer who neither paid August 2017 salary nor provided housing must pay house allowance at 15% of basic salary for the contract period
Court orders
#- 1.Salary for August 2017, if unpaid
- 2.House allowance at 15% of the basic salary for the duration of the last contract (1st January 2017 to 31st August 2017), basic salary being the average of the months of June, July and August 2017
- 3.50% of the costs of this suit
- 4.Interest at court rates from date of judgment till payment in full
- Jurisdiction invoked
- Original jurisdiction under the Employment Act, 2007 (Employment and Labour Relations Court)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Mwanza & another v Manpower Networks Limited (Cause 1989 of 2017) [2024] KEELRC 43 (KLR)", Case Analysis (2024). Cause No 1989 of 2017. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/43/eng@2024-01-29
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.