Ngetich & 2 others v Kenya Water Institute & 4 others (Cause E365, E366 & E375 of 2021 (Consolidated)) [2024] KEELRC 108 (KLR)
The bottom line
#Kenya's Employment Court ruled that revoking fixed-term contracts before expiry was unlawful, awarding three Kenya Water Institute employees six months' salary each.
What this practically means
#Executive summary
#Key legal issues
#Whether the revocation of the Claimants' contracts was lawful
The revocation was unlawful and unfair - it was in breach of the contract terms, breached the Employment Act, and was effected on the instructions of the 4th Respondent who had no authority to recruit or terminate the contracts
The Claimants were employed on renewable fixed term contracts which they voluntarily signed and which bound both parties. The last contracts were extended for 6 months terminable upon expiry or upon substantive recruitment of position holders, whichever came first. Revoking them before either event occurred breached the contracts, which contained no provision for revocation and specified the mode of termination. Further, the Cabinet Secretary had no authority over recruitment or termination, that power vesting in the Governing Council. The Claimants had a legitimate expectation that their contracts would run their course.
Whether the Claimants were entitled to the reliefs sought
Reinstatement refused; compensation of 6 months' gross salary awarded together with one month's salary in lieu of notice, outstanding gratuity and terminal benefits
Reinstatement was impossible because the contract terms had lapsed and the statutory three-year window had expired. Since reinstatement was not possible, section 49 of the Employment Act permitted compensation. Considering the length of service, the repeated renewals and extensions, the Respondents' conduct and the Claimants' legitimate expectation, 6 months' gross salary was reasonable. Terminal dues were awarded under the contracts.
Legal principles established
#- Once a fixed term contract is at an end, the employer has no obligation to justify termination beyond the lapse of the fixed period
- A fixed term contract logically ends automatically at its end date unless terminated
- A contract accepted becomes legally binding and can only be withdrawn or varied by consent or in accordance with the contract
Court orders
#- 1.Declaration that the revocation of the contracts of the Claimants was unlawful and unfair
- 2.Compensation to each Claimant equivalent to 6 months gross monthly salary under section 49 of the Employment Act
- 3.Parties to tabulate and exchange computation of the compensation, failing which either party may approach the court
- 4.Respondents to pay each Claimant one month's salary in lieu of notice, any outstanding gratuity and other terminal benefits under their terms of service
- 5.1st Respondent to bear the costs of the Claimants
- 6.Interest to accrue from date of judgment
- Jurisdiction invoked
- Employment and Labour Relations Act (ELRC jurisdiction over employment disputes)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ngetich & 2 others v Kenya Water Institute & 4 others (Cause E365, E366 & E375 of 2021 (Consolidated)) [2024] KEELRC 108 (KLR)", Case Analysis (2024). Nairobi ELRC Cause No. E365 of 2021 (with Cause No. E366 of 2021 and Cause No. E375 of 2021), consolidated for hearing. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/108/eng@2024-01-26
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.