[2020] KEELRC 314 (KLR)
The court found that the applicant's fixed-term contract expired by effluxion of time and, based on established legal principles, such contracts do not create an expectation of renewal unless expressly provided. The respondent followed its Human Resource Policy in evaluating and deciding not to renew the contract....
Source-derived case information.
- Citation
- [2020] KEELRC 314 (KLR)
- Parties
- Applicant: Derek Wangaki Okova; Respondent: Kenya Pipeline Company Ltd
- Court
- Employment and Labour Relations Court
- Court Station
- Employment and Labour Relations Court at Nairobi
- Jurisdiction
- Kenya
- Case Number
- Cause 192 of 2020
- Procedural Posture
- Employment Cause / Ruling on Interlocutory Motion
- Outcome
- motion dismissed with costs in the cause
- Judges
- MSA Makhandia
- Legal Topics
- Fixed Term Contracts, Non Renewal of Contract, Unfair Termination, Legitimate Expectation
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Derek Wangaki Okova
Applicant
Kenya Pipeline Company Ltd
Respondent
Procedural Posture
Employment Cause / Ruling on Interlocutory Motion
Legal Issues
- 1 Whether the non-renewal of the applicant's fixed-term employment contract amounted to unfair termination.
- 2 Whether the applicant had a legitimate expectation of renewal of his employment contract.
- 3 Whether the respondent's actions constituted discrimination or breach of contract.
Ratio Decidendi
The court found that the applicant's fixed-term contract expired by effluxion of time and, based on established legal principles, such contracts do not create an expectation of renewal unless expressly provided. The respondent followed its Human Resource Policy in evaluating and deciding not to renew the contract. There was no evidence of discrimination, malice, or breach of contract. The court also found no threat or breach regarding the applicant's property or mortgage. Consequently, the court declined to grant any of the orders sought by the applicant and dismissed the motion with costs in the cause.
Court Disposition
motion dismissed with costs in the cause
Orders
- The Motion dated 11 May 2020 is dismissed with costs in the cause.
- No injunctive or restraining orders are granted against the respondent.
Full Case Text
Judgment text and source record
46 paragraphs
REPUBLIC OF KENYA
IN THE EMPLOYMENT AND LABOUR RELATIONS COURT AT NAIROBI
CAUSE NO. 192 OF 2020
DEREK WANGAKI OKOVA............................................CLAIMANT
VERSUS
KENYA PIPELINE COMPANY LTD........................RESPONDENT
RULING
1. Before the Court is a Motion dated 11 May 2020 by Derek Wangaki Okova (applicant) seeking orders
1. ..
2. …
3. THAT pending the hearing and determination of this application and main suit, the Honourable Court be pleased to issue an order restraining the Respondent company whether by themselves or their representatives, servants, agents and/or assigns from terminating its contract with the Claimant.
4. THAT pending the hearing and determination of this application and main suit, the Honourable Court be pleased to issue an order compelling the Respondent Company to extend the Claimant’s contract to full terms.
5. THAT this Court, pending the hearing and determination of the Claimant’s application, do issue an injunction restraining the Respondent herein and/or their agents or servants from alienating, selling, transferring and/or attempting to sell by way of auction or otherwise or in any way whatsoever dealing with the Claimant’s property known as Maisonette Number 12 in Chesterhill erected on L.R. No. 337/969 situate at Athi River in Machakos County.
6. THAT pending the hearing and determination of this suit, the Respondent by themselves, their servants, agents or otherwise howsoever be restrained from interfering with the Claimant’s/applicant’s quiet and peaceful enjoyment of his property situated described as Maisonette Number 12 Chesterhill erected on L.R. No. 337/969 situate at Athi River in Machakos County.
7. THAT this Honourable Court be pleased to grant such other or further orders as it may deem fit to grant.
8. THAT costs of this application and suit be met by the Respondent.
2. When the Motion was placed before the Court ex-parte, it declined to issue any orders and directed that it be served.
3. On 26 May 2020, the Court directed the parties to file/exchange affidavits and submissions.
4. The Respondent filed a replying affidavit in opposition to the Motion on 10 July 2020.
5. The applicant filed his submissions on 3 August 2020 and an Amended Memorandum of Claim on 4 August 2020 while the Respondent filed its submissions and authorities on 28 August 2020.
6. The Court has considered the Motion, affidavits and submissions.
7. The applicant, the Operations Manager with the Respondent at the material time, was on a 3-year fixed term but renewal contract from 14 February 2017. On 30 July 2019, the applicant applied for the renewal of the contract.
8. In order to conclude the evaluation of the applicant’s performance under the ending contract, the Respondent’s Board met on 13 February 2020 and decided to renew the contract for 3-months (the contract was to expire on 14 February 2020).
9. In terms of the Respondent’s Human Resource Policies, the Human Resource Committee of the Board met on 16 April 2020 to discuss the renewal after consideration of a report from the Management.
10. The Committee, after reviewing the applicant’s performance resolved to recommend to the Board that the contract should not be renewed.
11. On 14 May 2020, the Respondent’s Managing Director wrote to the applicant to notify him that the Board Human Resource Committee had resolved that the contract should not be renewed.
12. Upon receipt of the decision, the applicant moved the Court and he stated the Issues in Dispute as
(i) Constructive renewal of the Claimant’s employment contract.
(ii) Non-renewal of an employment contract.
(iii) Violation and breach of the employment contract.
(iv) Violation and breach of Articles 41, 47 and 50 of the Constitution of Kenya.
13. Filed together with the Memorandum of Claim was the Motion already referred to in which the applicant contended that he had been verbally informed the Board had approved his request for renewal of contract and that the failure to renew his contract while those of other Managers were renewed was discriminatory; that the non-renewal was influenced by the Managing Director with whom he had a history of bad blood; that the attempt to re-evaluate his performance was in bad faith and driven by malice and that he had a legitimate expectation that the contract would be renewed.
14. The Respondent, in opposing the application asserted and submitted that in terms of the Human Resource Policy, it was the role of the Board Human Resource Committee to evaluate and deliberate on the request for renewal of the applicant’s contract and that the Committee evaluated the request and resolved not to renew the contract.
15. Considering that what is before the Court is essentially a dispute about the non-renewal of an employment contract and whether the same would amount to unfair termination of employment and further considering the Court of Appeal decision in Registered Trustees of the Presbyterian Church of East Africa & Ar v Ruth Gathoni Ngotho- Kariuki (2017) eKLR
that fixed-term contracts carry no rights, obligations, or expectations beyond the date of expiry……..
since the (R)espondent’s contract came to an end by effluxion of time any claim for wrongful termination could not be maintained.
the Court declines to grant any of the orders sought by the applicant.
16. The Court also finds no threat or breach of contract on the part of the Respondent in respect to the loan/mortgage which was extended to the applicant.
17. The Motion dated 11 May 2020 is dismissed with costs in the cause.
Delivered through Microsoft teams, dated and signed in Nairobi on this 23rd day of October 2020.
Radido Stephen
Judge
Appearances
For applicant Mr. Onyony instructed by Onyony & Co. Advocates
For Respondent Ms. Ngige instructed by Mohammed Muigai LLP Advocates
Court Assistant Judy Maina/Lindsey