Kenya Engineering Workers Union v East Africa Spectre Limited (Cause E6587 of 2020) [2025] KEELRC 1994 (KLR)
The bottom line
#Kenya's Employment Court ruled that continuing to pay a worker after a fixed-term contract expires converts the job into one that can only end with proper notice and a fair hearing.
What this practically means
#Executive summary
#Key legal issues
#Whether the grievant's employment was terminated and whether the termination was fair
The employment was terminated; the termination was both substantively and procedurally unfair because no valid reason was proved under Section 45(2)(a) and Section 41 hearing requirements were not met, and the 3 months' notice under clause 18 of the CBA was not given
Although the Respondent was not obliged to renew the fixed-term contract, its continued retention of the grievant for over three months after expiry meant termination required notice under Section 35(1)(c). The CBA, still in force, entitled the grievant to three months' notice or pay in lieu, but only one month was paid, rendering the termination procedurally unfair. Further, allegations of underperformance were never put to the grievant at a hearing as Section 41 requires, and validity of reasons was not proved under Section 45(2)(a).
Whether the reliefs sought are deserved
Two months' salary as compensation and two months' additional notice pay awarded; house allowance arrears and service pay declined
Compensation of two months' gross salary (Kshs.45,639/=) was awarded for unfair termination, and a further Kshs.45,639/= to make up three months' notice pay. House allowance failed because gross salary was inclusive of it; service pay failed because the grievant was an NSSF contributor, precluded by Section 35(6)(d) of the Employment Act.
Legal principles established
#- Fair termination requires both substantive justification and procedural fairness
- Where a fixed-term contract expires but the employee continues working for over three months with monthly pay, termination thereafter requires appropriate notice under Section 35(1)(c) of the Employment Act
- A CBA that continues in force until amended by both parties binds the employer at termination, including on notice entitlements
Court orders
#- 1.Compensation for unfair termination of employment of Kshs.45,639/=
- 2.Payment in lieu of notice of Kshs.45,639/= (being two months' salary to make up three months' notice, one month already paid)
- 3.Total judgment of Kshs.91,278/= against the Respondent, subject to statutory deductions pursuant to Section 49(2) of the Employment Act
- 4.The Respondent to pay the Claimant Trade Union Kshs.40,000/= as reimbursement of litigation expenses pursuant to Rule 70(4) of the ELRC (Procedure) Rules 2024
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction under the Employment Act and Labour Relations Act (trade dispute reported under Section 62 of the Labour Relations Act)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Engineering Workers Union v East Africa Spectre Limited (Cause E6587 of 2020) [2025] KEELRC 1994 (KLR)", Case Analysis (2025). Memorandum of Claim dated 20th November, 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/1994/eng@2025-07-04
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.