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ELRCDismissedCause No E506 of 2022· [2025] KEELRC 2034 (KLR)

Kenya Union of Commercial, Food and Allied Workers v DHL Supply Chain Kenya Limited (Cause E506 of 2022) [2025] KEELRC 2034 (KLR)

Employment and Labour Relations Court
25 June 2025
DMD. K. Njagi Marete
1,389 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's choice not to renew it is not unfair termination or redundancy.

What this practically means

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Executive summary

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The Claimant Union, on behalf of seventeen grievants covered by a recognition agreement and successive CBAs, claimed that the Respondent's refusal to renew or extend the grievants' fixed-term employment contracts on 28th January 2020 amounted to unfair, unlawful and unconstitutional termination or a disguised redundancy. It sought declarations, reinstatement, redundancy benefits per the CBA, twelve months' gross pay as compensation, and costs. The Respondent denied the claim, contending the contracts were fixed-term and expired by effluxion of time, with terminal dues paid per the contracts and CBA. The court framed four issues, principally whether there was a termination. Relying on section 10(5) of the Employment Act and Court of Appeal authority, the court held that the fixed-term contracts carried no rights or expectations beyond expiry; non-renewal was not termination under section 45 and not redundancy, the latter applying only where employment ends before contract expiry. No legitimate expectation of renewal arose, as the contracts had no automatic renewal clause and no clear representation of renewal was made. The Respondent's witness confirmed terminal dues were paid per contract. Finding no termination of employment, the court held the remaining issues fell away. The claim was dismissed with each party bearing their own costs. Judgment delivered on 25th June 2025 by D. K. Njagi Marete, Judge.

Key legal issues

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01

Whether refusal to renew fixed-term contracts amounted to termination of employment

Holding

No termination; the fixed-term contracts expired by effluxion of time and the Respondent was under no obligation to renew

Reasoning

Applying section 10(5) of the Employment Act, fixed-term contracts end on expiry of term without notice. The grievants' contracts had clear expiry dates and the Respondent notified them of non-renewal. Following the Court of Appeal authorities on fixed-term contracts, no claim of wrongful termination arises after expiry. There was no premature termination, hence no termination under section 45 of the Employment Act.

p. 3
02

Whether the grievants had a legitimate expectation of renewal

Holding

No legitimate expectation arose; the contracts had no automatic renewal clause and no clear representation of renewal was made

Reasoning

Legitimate expectation requires a clear, unambiguous representation by a decision-maker with legal competence to make it. The contracts contained no automatic renewal clause and the Respondent made no promises of renewal. Prior renewals of some grievants do not create a legally enforceable expectation of continued renewal.

p. 3
03

Whether the non-renewal was a disguised redundancy

Holding

Non-renewal of an expired fixed-term contract is not redundancy; the redundancy claim fails

Reasoning

Redundancy involves termination at the employer's initiative where services are superfluous, applying where employment is terminated before contract expiry. The Respondent's witness confirmed the grievants were paid terminal dues per their contracts, not redundancy pay. Since the contracts ended by effluxion of time, the redundancy claim fails.

p. 3

Legal principles established

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  • A fixed-term contract terminates on expiry of its term without notice unless otherwise agreed in writing
  • Non-renewal of an expired fixed-term contract is not redundancy and creates no claim for unfair termination

Court orders

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  1. 1.The claim is dismissed
  2. 2.Each party bears their own costs of the suit

Authorities

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Legislation

  • Employment ActSection 10(5)
  • Employment ActSection 45
  • Labour Relations ActSection 2

Cases cited (4)

  • Registered Trustees of the Presbyterian Church of East Africa & Another v Ruth Gathoni Ngotho-Kariuki
    [2017] eKLR
  • Abdala & 9 Others v Zhongmei & Another
    [2025] KECA 26 (KLR)
  • Republic v Pharmacy and Poisons Board & 2 Others Ex-parte Juliet Linemo Agufa
    [2015] eKLR
  • Veronica Moraa & 28 Others v Indu Farm (EPZ)
    [2016] eKLR
Jurisdiction invoked
Original employment and labour relations jurisdiction under the Employment and Labour Relations Court Act (dispute arising from a reported trade dispute and certificate of unresolved dispute); no specific constitutional provision invoked in the judgment

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, "Kenya Union of Commercial, Food and Allied Workers v DHL Supply Chain Kenya Limited (Cause E506 of 2022) [2025] KEELRC 2034 (KLR)", Case Analysis (2025). Cause No E506 of 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2025/2034/eng@2025-06-25

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