Obradleys Investment Limited v Mwanziu (Employment and Labour Relations Appeal E044 of 2024) [2025] KEELRC 3248 (KLR) (22 October 2025) (Judgment)

Summary at a glance

Facts

The Respondent was employed by the Appellant as a Store Controller on a one-year fixed-term contract. The contract was renewed for a second term from October 1, 2018 to September 30, 2019. The Respondent was terminated on September 30, 2019, and the Appellant claimed the termination was unfair.

Issues

• Whether the learned trial magistrate erred in law and fact in finding that the Respondent was unfairly terminated.
• Whether the learned trial magistrate erred in law and fact in awarding reliefs that were not pleaded, specifically compensation for unfair termination.
• Whether the learned trial magistrate erred in failing to properly evaluate the evidence on record, particularly concerning the nature of the Respondent's fixed-term contract and the allegation of desertion.

Reasoning

The contract was for a fixed term and automatically lapsed upon its expiry. The Respondent was not suspended but summarily dismissed. The Appellant failed to prove desertion and the evidence did not support the award of compensation for unfair termination.

Outcome

The appeal is partially successful.

Orders

• The award of compensation for unfair termination is vacated.
• The award of one month's salary in lieu of notice and salaries for August and September, 2019 is upheld.

Remedies

• The Respondent takes home relief as follows: one month's salary in lieu of notice (Kshs.37,000), salary for August and September, 2019 (Kshs.74,000), and total claim (Kshs.111,000). Each party shall bear their costs of this appeal and the lower court.

Authorities cited