Sukhija v NMC Fertility Point Kenya Limited (Employment and Labour Relations Cause E262 of 2022) [2025] KEELRC 257 (KLR)
The bottom line
#Kenya's Employment Court ruled a fixed-term contract simply ends when it expires, so an employer owes no notice or renewal, only unpaid earned benefits.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.Whether the Claimant was constructively and unlawfully dismissed or whether her fixed-term contract expired by effluxion of time
- 2.Whether the Claimant is entitled to three months' salary in lieu of notice
- 3.Whether the Claimant is entitled to twelve months' compensation for unlawful dismissal
- 4.Whether the Claimant is entitled to terminal dues including salary variables, leave pay and annual air ticket
- 5.Whether the Claimant is entitled to an injunction and damages for defamation
Key legal issues
#Whether the Claimant was constructively dismissed or the contract expired by effluxion of time
The contract, being a 30-month fixed-term contract, expired automatically on 1st January 2021; there was no dismissal and no breach by the Respondent.
The court found the contract dated 5th June 2018 ran for 30 months from 1st July 2018 and could be renewed only at the employer's sole discretion. The Respondent chose not to renew. The court found no evidence of constructive dismissal; the emails showed the Claimant herself indicated she was not interested in renewal. The claim for breach was therefore unfounded.
Whether the unilateral reduction of salary and entitlement to salary variables was proved
The reduction from USD 11,000 to USD 8,000 was agreed by the parties in an addendum dated 20th March 2020, so the Claimant was not entitled to salary variables.
The court reproduced the addendum showing the parties agreed the Claimant would receive USD 8,000 net of tax and be allowed outpatient practice outside the clinic during non-office hours. Since the reduction was consensual, the claim that it was unilateral failed.
Entitlement to leave pay and annual air ticket
The Claimant was awarded 25 days' leave pay of USD 6,666.57 and USD 1,145 for the 2019 and 2020 air tickets.
There was no indication the Claimant went on leave during the period, so she was awarded the 25 days' leave earned as prayed. The air ticket entitlement was provided for in Annex 1 of the employment contract, and the court awarded USD 640 for 2019 and USD 505 for 2020, totalling USD 1,145.
Legal principles established
#- A fixed-term contract expires automatically upon effluxion of time and the employer is not obliged to renew it or give notice of non-renewal.
Court orders
#- 1.Award of 25 days leave pay at USD 6,666.57
- 2.Award of annual air ticket payment for 2019 and 2020 at USD 1,145
- 3.Total award of USD 7,811.57 to the Claimant plus costs of the suit and interest at court rates from the date of judgment
- 4.Claims for notice pay, 12 months' compensation, salary variables, defamation injunction and defamation damages dismissed
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act, 2007
Relief refused
#Three months' salary in lieu of notice
The fixed-term contract expired by effluxion of time, not by dismissal or termination, so no notice was payable.
Twelve months' damages for unlawful dismissal and declaration of unlawful termination
The contract expired on 1st January 2021 and there was no breach by the Respondent in declining to renew.
Salary variables (USD 20,500 and Kshs. 888,589.47)
The salary reduction was agreed in the addendum of 20th March 2020, not unilaterally imposed.
Injunction and damages for defamation
No evidence of defamation was provided and the Respondent had a right to report professional misconduct to the regulator.
Costs
Costs of the suit awarded to the Claimant, with interest at court rates from the date of judgment.
Quotable passages
#Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.
This being a fixed term contract, the respondents could not be compelled to renew it. They were also not obligated to give any notice to the claimants.
There is no breach in my view as this contract expired by effluxion of time and the claim for breach is unfounded and is disregarded.
The total therefore awarded to the claimant is USD 7811.57 plus costs of this suit and interest at court rates w.e.f the date of this judgment.
Issues in the judgment
#The suit is described as a Petition but is adjudicated as a Memorandum of Claim, with the party referred to as Claimant rather than Petitioner.
Internal inconsistency in dates of the addendum to the employment agreement: described as executed on 20th March 2020 in submissions but the reproduced addendum is dated 1st March 2020, and the reduced salary is once stated as 80000 USDS.
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Sukhija v NMC Fertility Point Kenya Limited (Employment and Labour Relations Cause E262 of 2022) [2025] KEELRC 257 (KLR)", Case Analysis (2025). Petition dated 25th March 2021 (Employment and Labour Relations Court). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/257/eng@2025-02-04
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.