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ELRCPartially Allowed· [2024] KEELRC 2306 (KLR)

Tarmal Wire Production Limited v Shauri (Employment and Labour Relations Appeal E115 of 2023) [2024] KEELRC 2306 (KLR)

Employment and Labour Relations Court
26 September 2024
2,228 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~9 min to read original · ~4 min brief

The bottom line

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What this practically means

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Executive summary

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This was a first appeal to the Employment and Labour Relations Court at Mombasa against the judgment of the Mariakani Principal Magistrate's Court in Employment Case No. E048 of 2022, delivered on 13/10/2023. The Respondent had sued the Appellant claiming notice pay, severance pay, accrued leave pay, compensation for unfair termination, a certificate of service and costs, pleading that he was employed as a Machine Operator from November 2015 until his services were terminated on 25/2/2021 on account of reduced work. The Appellant denied the claim, asserting the Respondent was a general labourer engaged on successive fixed term contracts, the last running to 1/3/2021, which expired by effluxion of time. The trial court found the claimant was not on a fixed term contract, that his termination without notice and reasons was unfair, and awarded notice pay, eight months' salary in compensation, a certificate of service and costs. Aggrieved, the Appellant appealed, contending the magistrate erred in finding unfair termination and entitlement to notice. Agnes Kitiku Nzei, J, restated the duty of a first appellate court to re-evaluate the evidence, framed three issues, and found on the produced, signed and thumb-printed fixed term contract and unchallenged February 2021 payslip that the Respondent was employed on a fixed term contract that expired by effluxion of time on 1/3/2021. Relying on Court of Appeal authority that no claim for wrongful termination lies after expiry of a fixed term contract, the court allowed the appeal, set aside the trial court's judgment in its entirety, substituted an order dismissing the primary suit, and ordered each party to bear its own costs of both the appeal and the trial proceedings.

Key legal issues

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01

Whether the Respondent was employed on fixed term contracts

Holding

The Respondent was indeed on a fixed term contract which he duly signed in the presence of a witness on 28/1/2021, and which terminated by effluxion of time on 1/3/2021.

Reasoning

The produced fixed term contract bore the Respondent's signature and thumbprint on each of six pages, which he did not deny thumb-printing. The salary and job title in the contract matched his pleadings. The February 2021 payslip was signed and thumb-printed by him without challenge. The Appellant's witness testified all employees were on fixed term contracts. The Respondent offered no evidence supporting his contrary assertion.

p. 4
02

Whether the termination was unfair

Holding

The trial court erred; the contract ended by effluxion of time on 1/3/2021, not by termination on 25/2/2021, so there was no unfair termination

Reasoning

There was no evidence supporting the trial court's finding that services were terminated on 25/2/2021. The February 2021 payslip showed full salary and house allowance paid, leave days paid for, and the payslip signed and thumb-printed by the Respondent without dispute. Applying the Court of Appeal authorities, claims for wrongful termination cannot be maintained where a fixed term contract ends by effluxion of time.

p. 5

Legal principles established

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  • A first appellate court must re-evaluate the evidence and arrive at its own independent conclusion
  • A fixed term contract carries no rights or expectations beyond its expiry date, and no claim for wrongful termination lies where the contract ended by effluxion of time
  • An employer has no obligation to give reasons for not renewing a fixed term contract

Court orders

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  1. 1.The trial Court's judgment delivered on 13/10/2023 is set aside in its entirety
  2. 2.Substituted with an order dismissing the primary suit, Mariakani Principal Magistrate's Court ELR Case No. E048 of 2022
  3. 3.Each party to bear its own costs of the appeal and of the proceedings in the trial Court

Authorities

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Cases cited (7)

  • Silas Mutwiri -vs- Haggai Multi Cargo Handling Services Ltd
    [2013] eKLR
  • Selle & Another -vs- Associated Motor Boat Co. Ltd & Anotehr
    [2968] EA 123
  • Peters -vs- Sunady Post Ltd
    [2995] EA 424
  • Mursal -vs- Manesa
    [2022] eKLR
  • Registered Trustees of Presbyterian Church of East Africa -vs- Ruth Gathoni Ngotho
  • Transparency International Kenya -vs- Teresa Carlo Omondi
    (2023) eKLR
  • Registered Trustees De La Salle Christian Brothers t/a St. Mary's Boys Secondary School -vs- Julius M.d. Bainin
    [2017] eKLR
On appeal from
Mariakani Principal Magistrate's Court
Employment Case No. E048 of 2022
Jurisdiction invoked
First appellate jurisdiction over the trial court's judgment (appeal from Mariakani Principal Magistrate's Court)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Tarmal Wire Production Limited v Shauri (Employment and Labour Relations Appeal E115 of 2023) [2024] KEELRC 2306 (KLR)", Case Analysis (2024). . Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2306/eng@2024-09-26

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.