Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No E054 of 2022· [2024] KEELRC 1465 (KLR)

Chwanya v Trees for the Future Inc (Cause E054 of 2022) [2024] KEELRC 1465 (KLR)

Employment and Labour Relations Court
13 June 2024
3,539 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

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

#
The Claimant, employed as a driver, sued the Respondent seeking declarations of constructive dismissal and unfair termination plus Kshs 2,878,000/- covering notice pay, 12 months' compensation, leave, holidays, weekends, unpaid salary, salary for the unexpired contract and travel allowance. The dispute centred on competing contracts: the Claimant produced a two-year contract dated 13th October 2021 at Kshs 65,000/- plus a purported promotion letter; the Respondent produced a one-year contract signed 15th November 2021, alleging forgery, supported by a forensic document examiner's opinion and evidence that it only issues one-year contracts owing to funding shortages. The court framed four issues. It dismissed the constructive dismissal claim for want of evidence, applying CMC Aviation v Cruisair on the need to prove pleadings and Coca Cola v Lugaga on the constructive dismissal threshold. It found the two-year contract unproven and upheld the one-year contract, holding that the Claimant's employment lapsed by effluxion of time after a 7th November 2022 non-renewal letter, with no legitimate expectation of renewal on a first contract. All termination-based remedies therefore failed, as did travel allowance, leave, holidays and weekend claims for want of evidence. However, the court awarded salary arrears of Kshs 50,330/-, finding the Respondent had paid Kshs 60,000/- monthly against its own contract rate of Kshs 65,000/-. The claim partially succeeded; the court declared the termination not unfair, awarded the arrears, and ordered each party to bear its own costs. Judgment delivered at Kisumu on 13th June 2024 by C. N. Baari, Judge.

Key legal issues

#
01

Whether the Claimant was constructively dismissed

Holding

The claim failed for want of evidence; no proof that the Claimant resigned due to a hostile work environment

Reasoning

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.

p. 5
02

Whether the Claimant was on a two-year or one-year contract

Holding

The Claimant failed to prove the two-year contract; the court upheld the Respondent's one-year contract

Reasoning

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.

p. 6
03

Whether the contract lapsed by effluxion of time

Holding

Yes; the Claimant was not dismissed, the contract lapsed in November 2022 after notice of non-renewal

Reasoning

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.

p. 7
04

Salary arrears

Holding

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

Reasoning

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.

p. 7

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. 1.A declaration that the Claimant's termination is not unfair
  2. 2.Payment of Salary arrears of Kshs 50,330/-
  3. 3.Each party shall bear their own costs of the suit

Authorities

#

Legislation

  • Employment ActSection 43
  • Employment ActSection 45
  • Employment ActSection 47(5)
  • Employment ActSection 49

Cases cited (9)

  • Peter Otabong Ekisa v County Government of Busia
    [2017] eKLR
  • Republic v Rosemary Wairimu Munene and Ihururu Dairy Farmers Co-operative Society Ltd
  • Milton M Isanya v Aga Khan Hospital Kisumu
    (2017) eKLR
  • Coca Cola East Africa v Maria Kagai Ligaga
    (2015) eKLR
  • Kenya Engineering Workers Union v Narcol Aluminuim Rolling Mills Limited
    (2015) eKLR
  • Registered Trustees of the Presbyterian Church of East Africa v Ruth Gathoni Ngotho Kariuki
    [2017] eKLR
  • Alphonce Maghanga Mwachanya v Operation 680 Limited
    [2013] eKLR
  • CMC Aviation Ltd. v Cruisair Ltd. (No 1)
    [1978] KLR 103; [1976-80] 1 KLR 835
  • Coca Cola East & Central Africa Limited v Maria Kagai Lugaga
    (2015) eKLR
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.