Ondora v Makori & 6 others (Being sued as the registered officials/leaders of the Seventh-Day Adventist Church, East Kenya Union Conference (E.K.U.C), Home Health Education Service) (Employment and Labour Relations Cause 346 of 2017) [2024] KEELRC 2068 (KLR)
The bottom line
#Kenya's Employment Court ruled a fixed-term contract simply expires on its end date—no termination notice needed—though the employee still recovered part of his terminal dues.
What this practically means
#Executive summary
#Key legal issues
#Whether the Claimant's employment was unfairly terminated
No - the fixed-term contract expired by effluxion of time on 31st December 2016 and was not renewed; no notice or procedural fairness under section 41 was required
The court found the material contract was a fixed-term contract running 1st January 2016 to 31st December 2016, treating the printed 2013 expiry date as a typographical error. Citing Amatsi Water Services and National Water Conservation, fixed-term contracts terminate automatically on the sunset date unless extended. The execution date of 23rd March 2016 was irrelevant to the end date. The unfair termination claim therefore failed.
Whether the deductions from the Claimant's terminal dues were lawful
Yes - half the proved stock shortfall (Kshs 76,996.75) was lawfully deducted under section 19(1)(d) of the Employment Act
The court found, on a balance of probabilities, that the stock shortage of Kshs 153,993.49 arose from the Claimant's and his Manager's dishonesty, evidenced by the signed Stock Taking Report of 19th January 2016 and the 25th November 2016 audit report signed by the Claimant. The apportionment of liability half to the Manager was justified, and the statutory deduction cap was respected, rendering the counterclaim unnecessary.
Whether the Claimant was entitled to the terminal dues and certificate of service
Yes - December 2016 salary, December 2016 commuter allowance, gratuity at 10% of yearly salary, and yearly bonus, less lawful deductions; plus a Certificate of Service under section 51
The Respondents admitted entitlement to gratuity and bonus; gratuity was computed at 10% of yearly salary per Clause 6. The commuter allowance claim was limited to December 2016 as the only uncontroverted proof related to that period. Section 51 of the Employment Act entitled the Claimant to a Certificate of Service.
Legal principles established
#- Fixed-term contracts lapse automatically at the appointed time; no notice of termination is required before the lapse date and section 41 procedural fairness is inapplicable to expiry on the appointed date
- Under section 19(1)(d) of the Employment Act, an employer may deduct from wages an amount equal to a shortage of money arising through the employee's negligence or dishonesty, capped at two-thirds of monthly wages
- An employee who signs a stock-taking report acknowledging a shortage cannot later disown its contents as mere confirmation of presence
Court orders
#- 1.The Claimant be paid salary for December 2016 of Kshs 30,240/-, commuter allowance for December 2016 of Kshs 2,500/-, yearly gratuity of Kshs 36,288/- and yearly bonus of Kshs 30,240/-, total Kshs 99,268/-, less Kshs 76,996.75/-, leaving Kshs 22,271.25/-
- 2.The Claimant be issued with a Certificate of Service within 30 days of the Judgment
- 3.Interest on the award at court rates from the date of judgment until payment in full
- 4.Each party to bear their own costs
- 5.The Claimant's claim of unfair termination is dismissed
- 6.The Respondents' counterclaim is dismissed
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act and Employment Act 2007
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Ondora v Makori & 6 others (Being sued as the registered officials/leaders of the Seventh-Day Adventist Church, East Kenya Union Conference (E.K.U.C), Home Health Education Service) (Employment and Labour Relations Cause 346 of 2017) [2024] KEELRC 2068 (KLR)", Case Analysis (2024). Employment and Labour Relations Court Cause dated 17th February 2017 (Memorandum of Claim dated 17th February 2017). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2068/eng@2024-07-31
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.