Todor Services Limited v Deri (Appeal E270 of 2024) [2025] KEELRC 1948 (KLR)
The bottom line
#Kenya's Employment Court confirmed that when a fixed-term contract simply expires, the employer owes no notice, reasons or compensation — only genuine entitlements like unused leave survive.
What this practically means
#Executive summary
#Key legal issues
#Termination versus effluxion of time of a fixed-term contract
The trial court erred; the respondent's employment ended on expiry of the term contract with notice of non-renewal, so no unfair termination arose
The last term contract ended in March 2019 and a memo dated 31 March 2019 notified non-renewal. The fact of an expiring term contract was not challenged. Relying on Keen Kleeners and Transparency International - Kenya v Omondi, an employer need not justify non-renewal or give reasons unless the contract creates such an obligation. Notice pay and compensation were therefore without basis.
Limitation and underpayment claims
Each contract renewal created a distinct employment relationship; underpayment claims are continuing injuries under Section 89 and none was proved since the wage paid exceeded the minimum
Underpayments accrue monthly/weekly/daily and must be pursued within the continuing-injury window (12 months, per Juma v Mada Holdings). With successive renewals, each renewal was a separate relationship. On the merits, the position of fuel loader is undefined in the Wage Orders and the wage paid (Ksh. 652) was above the general minimum wage, so no underpayment existed.
March 2019 salary
The award could not stand; the respondent admitted in evidence that the salary was paid and a voucher confirmed payment
The respondent disputed the payment voucher and relied on his payslips, arguing the employer bore the burden of proving receipt. However, on the evidence the court found the respondent had admitted receipt in his evidence and that a signed salary voucher dated 30 March 2019 confirmed payment, so the trial award was unsupported.
Leave days
The trial court's award of Ksh. 11,826 for 15 outstanding leave days was upheld
The magistrate evaluated the leave records and found 15 leave days outstanding. The appellant's evidence of leave forms was disputed (signature issues, missing 2016-2017 form, unutilized 2017-2018 days). The appellate court found the amount due and did not disturb it.
Legal principles established
#- A fixed-term contract that concludes as stipulated is lawful; upon expiry there is no obligation to give notice or reasons for non-renewal unless the contract creates such an obligation
- Underpayment claims accrue monthly, weekly or daily and constitute a continuing injury to be addressed within the limitation period for continuing injuries
Court orders
#- 1.The appeal is allowed; the trial court's awards of 12 months' compensation (Ksh. 283,824), notice pay (Ksh. 23,653), unpaid March 2019 salary (Ksh. 23,653) and underpayments (Ksh. 102,682) are set aside
- 2.The award for leave days at Ksh. 11,826 is retained
- 3.The judgment in Mombasa CMELRC No. E680 of 2021 is reviewed accordingly
- 4.There are no orders on costs
- On appeal from
- Magistrates' Court (ELRC), Mombasa
- Mombasa CMELRC No. E680 of 2021
- Jurisdiction invoked
- First appellate jurisdiction over the subordinate court's ELRC judgment ( Employment and Labour Relations Court; appeal from Mombasa CMELRC No. E680 of 2021)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Todor Services Limited v Deri (Appeal E270 of 2024) [2025] KEELRC 1948 (KLR)", Case Analysis (2025). Mombasa ELRC Appeal (judgment delivered 30 June 2025). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1948/eng@2025-06-30
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.