Chwanya v Trees for the Future Inc (Cause E054 of 2022) [2024] KEELRC 1465 (KLR)
The bottom line
#A Kenyan court ruled that when a fixed-term contract simply expires, it's not a dismissal, but employers must still pay the salary they promised in writing.
What this practically means
#Executive summary
#Key legal issues
#Whether the Claimant was constructively dismissed
The claim failed for want of evidence; no proof that the Claimant resigned due to a hostile work environment
The Claimant pleaded constructive dismissal but led no evidence in support. Relying on CMC Aviation v Cruisair on the need to prove pleadings, and Coca Cola v Lugaga on the requirement that an employee resign due to the employer's frustrations, the court found the prayer unproven and dismissed it.
Whether the Claimant was on a two-year or one-year contract
The Claimant failed to prove the two-year contract; the court upheld the Respondent's one-year contract
The Respondent produced a one-year contract signed 15th November 2021 and evidence that it only issues one-year contracts due to funding shortages. RW2, a forensic document examiner, testified the two-year contract originated from a different source. The Claimant did not controvert this evidence, and CW2 himself confirmed one-year contracts were the practice.
Whether the contract lapsed by effluxion of time
Yes; the Claimant was not dismissed, the contract lapsed in November 2022 after notice of non-renewal
The Claimant received a letter dated 7th November 2022 informing him the contract would not be renewed past 30th November 2022. This being his first contract with the Respondent, with no renewal clause or history of renewals, no legitimate expectation of renewal arose.
Salary arrears
The Claimant was entitled to arrears of Kshs 50,330/- as the Respondent paid Kshs 60,000 per month against a contractual salary of Kshs 65,000
The Respondent's own contract provided a gross salary of Kshs 65,000, yet payslips showed payment of Kshs 60,000 from November 2021 to August 2022 and Kshs 64,890 thereafter. The court found no justification for departing from the contract and awarded the differential.
Legal principles established
#- A fixed term contract carries no general expectation of renewal; expectancy arises only where there is a renewal clause or a pattern of previous renewals
- Pleadings are not evidence; averments must be proved before a decision can be founded on them
Court orders
#- 1.A declaration that the Claimant's termination is not unfair
- 2.Payment of Salary arrears of Kshs 50,330/-
- 3.Each party shall bear their own costs of the suit
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act (Sections 43, 45, 47, 49 applied)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Chwanya v Trees for the Future Inc (Cause E054 of 2022) [2024] KEELRC 1465 (KLR)", Case Analysis (2024). Cause No E054 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1465/eng@2024-06-13
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.