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ELRCPartially AllowedMombasa ELRC Appeal (judgment delivered 30 June 2025)· [2025] KEELRC 1948 (KLR)

Todor Services Limited v Deri (Appeal E270 of 2024) [2025] KEELRC 1948 (KLR)

Employment and Labour Relations Court
30 June 2025
2,044 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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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

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Executive summary

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This is a first appeal to the Employment and Labour Relations Court at Mombasa (M. Mbarũ, J) against a judgment of 5 December 2024 in Mombasa CMELRC No. E680 of 2021, in which the learned magistrate found unfair termination and awarded the respondent 12 months' compensation (Ksh. 283,824), notice pay (Ksh. 23,653), unpaid March 2019 salary (Ksh. 23,653), underpayments for three years (Ksh. 102,682), leave pay (Ksh. 11,826), a certificate of service, costs and interest. The appellant contended the respondent was on fixed-term contracts, the last expiring 31 March 2019 with a memo of non-renewal, so employment ended by effluxion of time; that March 2019 salary was paid and proved by voucher; that underpayment claims were time-barred and baseless; and that all leave was utilised. The respondent maintained that after the 2018 contract lapsed he continued working, converting to permanent employment under Section 37 of the Employment Act, entitling him to procedural protection under Sections 41 and 43. The court held that term contracts are lawful under Section 10(3), that no notice or reasons for non-renewal are required absent a contractual obligation, and that successive renewals created distinct relationships, making underpayment claims continuing injuries under Section 89. It found no underpayment, noted the respondent's admission of the March 2019 payment, but upheld the leave award of Ksh. 11,826. The appeal was allowed save for the leave award; the trial judgment was reviewed accordingly, with no orders on costs.

Key legal issues

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01

Termination versus effluxion of time of a fixed-term contract

Holding

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

Reasoning

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.

p. 4
02

Limitation and underpayment claims

Holding

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

Reasoning

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.

p. 5
03

March 2019 salary

Holding

The award could not stand; the respondent admitted in evidence that the salary was paid and a voucher confirmed payment

Reasoning

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.

p. 5
04

Leave days

Holding

The trial court's award of Ksh. 11,826 for 15 outstanding leave days was upheld

Reasoning

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.

p. 5

Legal principles established

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  • 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

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  1. 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. 2.The award for leave days at Ksh. 11,826 is retained
  3. 3.The judgment in Mombasa CMELRC No. E680 of 2021 is reviewed accordingly
  4. 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

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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, "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.