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ELRCPartially AllowedNot stated in judgment (Memorandum of Claim dated March 31, 2021)· [2024] KEELRC 2453 (KLR)

Cyprian v Kenya Forestry Research Institute (Employment and Labour Relations Cause E269 of 2021) [2024] KEELRC 2453 (KLR)

Employment and Labour Relations Court
4 October 2024
2,854 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~11 min to read original · ~4 min brief

The bottom line

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A Kenyan court confirmed that fixed-term employment contracts end automatically on their expiry date, and working briefly afterwards does not renew them.

What this practically means

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Executive summary

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The Claimant, engaged as Project Officer/Manager of the Water Towers Project on a two-year fixed term contract effective 24/10/2016 at a gross monthly salary of Kshs 102,900, claimed that his contract was unlawfully suspended effective 1/8/2018 on account of partial suspension of the Kenya Water Towers Programme funded by the European Union, and that it was never lifted until an email of 7/1/2021 asking him to clear. He sought salary for 27 months of suspension on legitimate expectation grounds, leave, gratuity at 31% of basic salary, travel and accommodation allowance for preparing year-3 status reports, and a certificate of service. The Respondent maintained he served the full contract to 23/10/2018, was paid all dues including gratuity of Kshs 321,018, and that the contract ended by effluxion of time after the EU suspended the project. Framing two issues - lawfulness of termination and entitlement to reliefs - the court, applying Rajab Barasa v Kenya Meat Commission and related fixed-term authorities, held that the fixed term contract expired automatically on 24/10/2018 and was not renewed by operation of law; writing reports after expiry did not confirm renewal, and no termination notice or redundancy notice was required. It found dues including gratuity were paid, but reserved the question whether salary was paid for the final months of the contract term, directing a mention on October 22, 2024 for the Respondent to produce evidence. It ordered each party to bear their own costs and directed issuance of a certificate of service within 30 days.

Key legal issues

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01

Whether a fixed term contract is automatically renewed by operation of law

Holding

No - the Claimant's fixed term contract expired by effluxion of time on 24/10/2018 and was not renewed by operation of law, notwithstanding the Claimant's subsequent preparation of reports

Reasoning

Relying on Rajab Barasa v Kenya Meat Commission and Benson Maiyo v Agricultural Finance Co-operation, the court held that fixed term contracts have a definite start and end, carry no expectation of automatic renewal, and require no termination or renewal notice unless expressly provided. The Claimant was aware his contract was fixed. Writing year-3 reports after expiry did not confirm renewal. Consequently there was no unlawful or unfair termination by redundancy.

p. 6
02

Whether the Claimant was entitled to salary for the suspension period and other reliefs

Holding

Partially - the court found dues including gratuity were paid, but was unclear whether salary for August to October 23, 2019 was paid and directed mention for evidence on that point

Reasoning

The court found gratuity of Kshs 321,018 less PAYE was paid, but noted uncertainty over payment of salary for the final months of the contract term (August to October 23, 2019). Rather than decide that head finally, it directed a mention for the Respondent to provide evidence of payment. It also ordered a certificate of service, which the Claimant was owed.

p. 6

Legal principles established

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  • A fixed term contract expires automatically on its expiry date and requires no notice of termination or renewal unless specifically provided in the contract
  • Post-expiry work for an employer does not amount to a renewal of a fixed term contract

Court orders

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  1. 1.Mention on October 22, 2024 for the Respondent to provide evidence whether the Claimant was paid his salary up to the date of expiration of his contract (August to October 23, 2019 period)
  2. 2.Each party to meet their respective costs of the suit
  3. 3.Claimant to be issued with a certificate of service within 30 days

Authorities

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Legislation

  • Employment Actsection 10
  • Employment Actsection 40
  • Employment Actsections 7, 8, 9 and 10
  • Constitution of KenyaArticle 159(2)(d)
  • Constitution of KenyaArticle 48
  • Civil Procedure Act (Chapter 21, Laws of Kenya)Section 1B
  • Civil Procedure RulesOrder 21 Rule 1

Cases cited (6)

  • Rajab Barasa & 4 others v Kenya Meat Commission
    [2016] eKLR
  • Chacha Mwita versus KEMRI & Others
    Cause No.1901 of 2013
  • Benson Maiyo v Agricultural Finance Co-operation
    [2019] eKLR
  • Fatuma Abdi versus Kenya School of Monetary Studies
    [2017] eKLR
  • Margaret A. Ochieng versus National Water Conservation and Pipeline Corporation
    [2014] eKLR
  • Margaret A Achieng versus National Water Conservation Corporation
Jurisdiction invoked
Employment and Labour Relations Court original jurisdiction under the Employment and Labour Relations Court Act (claim under the Employment Act); judgment delivered per Article 159(2)(d) and Article 48 of the Constitution

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, "Cyprian v Kenya Forestry Research Institute (Employment and Labour Relations Cause E269 of 2021) [2024] KEELRC 2453 (KLR)", Case Analysis (2024). Not stated in judgment (Memorandum of Claim dated March 31, 2021). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/2453/eng@2024-10-04

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