Eafula v Menengai Oil Refineries Limited (Employment and Labour Relations Cause E233 of 2024) [2026] KEMC 43 (KLR)
The bottom line
#A Kenyan court ruled that ending a worker's contract without notice or reason was unlawful, and awarded him overtime and holiday pay.
What this practically means
#Executive summary
#Key legal issues
#Nature of the Claimant's employment and whether termination was unfair
The Claimant was on a renewable fixed term contract; termination on 20/05/2024 effective 01/06/2024, without reason or the one month notice required by Clause 7, was premature, unprocedural and unlawful.
The Respondent failed to produce the last contract allegedly expiring 31/05/2024. The court deemed the Claimant to be on a renewable fixed term contract based on the contracts produced, rejecting indefinite employment. The termination letter gave no reason and made no reference to expiry of a contract, and was issued only 11 days before termination, contrary to Clause 7's requirement of one month's notice or payment in lieu.
Overtime and public holiday pay
Claimant worked 12-hour shifts without overtime or public holiday pay; awarded as claimed since the Respondent failed to produce employment records.
RW1 admitted the Respondent kept a Muster Roll and Biometric Clock in/out Register which were not produced. Relying on Paul Wafula v Century Feeds Ltd, the court presumed the withheld records were adverse to the Respondent. The claims were held to be continuing claims filed within time, defeating the limitation objection.
Severance pay and compensation quantum
Severance pay refused as there was no redundancy; compensation limited to one month's pay.
Severance pay is compensation for redundancy under Section 40, which was not the mode of termination. On quantum under Section 49, the court took into account that the contract was bound to expire one month later and awarded one month's pay of Kshs. 23,230/- rather than the 12 months sought.
Legal principles established
#- Fairness of termination is assessed on both procedure and substantive justification.
- An employer who admits keeping employment records but fails to produce them in court risks a presumption that the records would have been adverse to its case.
- An NSSF member evidenced by payslips is not entitled to service pay.
Court orders
#- 1.A declaration that the termination of the Claimant's employment on 01/06/2024 vide the Contract Termination Letter dated 20/05/2024 was unfair and unlawful
- 2.Compensation for unfair and unlawful termination under Section 49(1)(c) of the Employment Act, 2007 of Kshs. 23,230/-
- 3.1 month's salary in lieu of notice of Kshs. 20,200/-
- 4.Normal overtime of Kshs. 1,213,507.69
- 5.Public holidays pay of Kshs. 185,840/-
- 6.Costs and interest of the suit
- Jurisdiction invoked
- Employment and Labour Relations Court jurisdiction over employment disputes (Employment Act, 2007; Employment and Labour Relations Court Act)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Eafula v Menengai Oil Refineries Limited (Employment and Labour Relations Cause E233 of 2024) [2026] KEMC 43 (KLR)", Case Analysis (2026). Memorandum of Claim dated 02nd August, 2024. Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/43/eng@2026-02-24
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.