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ELRCDismissedNot stated in judgment

Nyakweba v Metsec Cables Limited (Cause 549 of 2018) [2024] KEELRC 1624 (KLR)

Employment and Labour Relations Court
24 June 2024
3,486 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~14 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that when a fixed term contract simply expires on its end date, the employee cannot claim unfair dismissal or compensation.

What this practically means

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Executive summary

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The Claimant sued the Respondent claiming he was constructively dismissed on 2nd January 2018 when the Human Resources Manager verbally instructed him to leave the premises allegedly due to reduced workload, and sought January 2018 salary, notice pay, leave pay for six years, loss of income for eighteen years and twelve months' compensation for unfair dismissal. The Respondent countered that the Claimant served under successive fixed term contracts offered subject to availability of work, the last running from 1st November to 31st December 2017, which expired by effluxion of time, upon which he was paid terminal dues of KShs. 9,948 and signed a release and discharge. The court framed four issues: the nature of the contract, how it terminated, whether termination was unfair, and entitlement to reliefs. The court found the Claimant deliberately omitted from his pleadings the fact of successive fixed term contracts to mischaracterize the relationship, holding that material facts must be pleaded with sufficient particularity. The doctrine of legitimate expectation, raised only in evidence and submissions, was unpleaded and unproved. The court held the Claimant was serving under a fixed term contract that terminated by effluxion of time on 31st December 2017; the stipulated end date operates as an advance termination notice, and no unfair termination arises where a fixed term contract ends on its appointed date. The claim was dismissed with costs to the Respondent.

Questions the Court framed

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The issues the Court set itself to decide, in its own words.

  1. 1.What was the nature of the contract of service between the Claimant and the Respondent at the time of separation?
  2. 2.How did the contract of service come to termination?
  3. 3.Was the termination of the Claimant's employment unfair?
  4. 4.Is the Claimant entitled to the reliefs sought?

Key legal issues

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01

Nature of the contract of service at separation

Holding

The Claimant was serving under a fixed term contract that terminated by effluxion of time on 31st December 2017

Reasoning

The court found the Claimant was engaged initially on a seven-month fixed term contract dated 6th June 2011 and thereafter served under successive short fixed term contracts, the last running from 1st November 2017 to 31st December 2017. The Claimant admitted executing the last contract despite the erroneous date. Beyond 31st December 2017 he did not work under any contract. The attempt to characterize the employment as permanent or open-ended failed, and the doctrine of legitimate expectation was unpleaded and unproved.

p. 6
02

Whether termination was unfair

Holding

No unfair termination arose because the contract ended by effluxion of time on the agreed date; no notice or hearing was required

Reasoning

Relying on authority, the court held that a fixed term contract terminates on its sunset date unless extended per its terms, and a court cannot rewrite the contract. The stipulated end date operates as an advance termination notice, so insistence on a termination notice where the contract runs its full course is unjustified. Procedural fairness under sections 41 and 45 of the Employment Act applies to termination, not to natural expiry of a fixed term contract.

p. 6
03

Pleading of material facts and legitimate expectation

Holding

The Claimant's failure to plead the fixed term contracts and legitimate expectation barred reliance on them

Reasoning

The court reiterated that pleadings must contain a clear and concise statement of material facts sufficient to enable the opposite party to reply. The Claimant deliberately omitted the history of fixed term contracts from his pleadings to mischaracterize the relationship, and raised legitimate expectation only in cross-examination, re-examination and submissions. Such unpleaded material facts and unproved legitimate expectation could not found his claim.

p. 6

Legal principles established

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  • Where a fixed term contract comes to an end on the appointed date in accordance with the contractual terms, a claim for unfair termination cannot be sustained
  • The clause in a fixed term contract stipulating the contract period serves as an advance termination notice
  • A party must plead the material facts, including fixed term contracts and legitimate expectation, upon which they rely

Court orders

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  1. 1.The Claimant's claim is dismissed with costs

The bench

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One judgment of the whole court — no separate or dissenting opinions.

majority

Wrote the judgment

Jurisdiction invoked
First-instance employment and labour relations claim under the Employment Act, 2007

Relief refused

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All reliefs sought: January 2018 salary, one month's pay in lieu of notice, leave pay for 6 years, loss of income for 18 years and 12 months' compensation for unfair dismissal

The claim for unfair termination is not founded because the fixed term contract terminated by effluxion of time

p. 7

Costs

The Claimant's case is dismissed with costs to the Respondent

Quotable passages

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Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

In the upshot, I find no merit in the Claimant's case. It is hereby dismissed with costs.
p. 7Final orders - dismissal with costs
the Claimant at separation was serving under a fixed term contract that terminated by efiuxion of time on the 31st December 2017.
p. 6Nature and termination of the contract
the clause in a fixed term contract that stipulates the contract period, (and there must be one always), serves as an advance termination notice.
p. 7No notice payable on natural expiry of fixed term contract
The attempt by the Claimant to rely on the unpleaded doctrine of legitimate expectation does not come to the aide of his case. In any event, no evidence was led to establish the same.
p. 6Unpleaded legitimate expectation

Issues in the judgment

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minor

The Court of Appeal case is cited with inconsistent party and appeal numbers: 'National Water Conservation & Pipeline Corporation vs. Jayne Kanini Mwanza, Civil Appeal No. 178 of 2014 (UR)' in submissions but 'National Water Conservation & Pipeline Corporation vs. Janet Kanini Mwanza, Civil Appeal No. 118 of 2014 (UR)' in the court's own citation

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, "Nyakweba v Metsec Cables Limited (Cause 549 of 2018) [2024] KEELRC 1624 (KLR)", Case Analysis (2024). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2024/1624/eng@2024-06-24

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