Dan Caxton Chogo Undusu v Jubilee Insurance Company of Kenya Limited [2020] eKLR Case Summary

Court
Employment and Labour Relations Court at Nairobi
Category
Civil
Judge(s)
Hon. Lady Justice Maureen Onyango
Judgment Date
October 09, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3
Explore the key details and implications of the Dan Caxton Chogo Undusu v Jubilee Insurance Company of Kenya Limited [2020] eKLR case. Gain insights into this significant legal ruling and its impact on insurance law in Kenya.

Case Brief: Dan Caxton Chogo Undusu v Jubilee Insurance Company of Kenya Limited [2020] eKLR

1. Case Information:
- Name of the Case: Dan Caxton Chogo Undusu v. The Jubilee Insurance Company of Kenya Limited
- Case Number: Cause No. 2126 of 2016
- Court: Employment and Labour Relations Court, Nairobi
- Date Delivered: 9th October 2020
- Category of Law: Civil
- Judge(s): Hon. Lady Justice Maureen Onyango
- Country: Kenya

2. Questions Presented:
The central legal issues for resolution in this case are:
- Whether the Claimant was unfairly terminated from his employment.
- Whether the Claimant is entitled to the reliefs sought, including gratuity pay, unpaid leave allowance, and damages for wrongful termination.

3. Facts of the Case:
The Claimant, Dan Caxton Chogo Undusu, was employed by the Respondent, The Jubilee Insurance Company of Kenya Limited, as a Clerk of Works under a fixed-term contract that commenced on 17th January 2011. His contract was extended multiple times, with the last extension set to expire on 28th August 2015. The Claimant alleged that he expected his contract to be renewed and claimed that his termination was unlawful, as he did not receive a notice of termination and had not been paid his terminal dues. He sought various reliefs, including gratuity and unpaid leave allowance.

The Respondent contended that the Claimant's contract naturally expired on 28th August 2015, and there was no obligation to provide notice of termination. They argued that all terminal dues had been settled through a discharge voucher issued to the Claimant.

4. Procedural History:
The case began with the Claimant filing a Memorandum of Claim on 14th October 2015. The Respondent filed a Memorandum of Defence on 8th February 2017, asserting that the Claimant's contract had expired and all dues had been paid. The Claimant responded, reiterating his claims. The court heard testimonies from both parties, with the Claimant asserting entitlement to gratuity and leave pay, while the Respondent maintained that all payments were made and that the termination was lawful.

5. Analysis:
Rules:
The court considered several relevant statutes, including the Employment Act, which outlines the rights of employees regarding termination and entitlements. Specifically, Section 35(6) states that gratuity is not payable to employees who are members of the National Social Security Fund (NSSF), which the Claimant was.

Case Law:
The court referenced prior cases, such as *Bamburi Cement Limited v. William Kilonzi* [2016] eKLR, which discussed gratuity as a gratuitous payment contingent upon employment termination not being a dismissal. Additionally, *Chacha Mwita v. KEMRI & Others* [2014] eKLR established that fixed-term contracts do not imply an expectation of renewal unless mutually agreed. The court also cited *Margaret A Ochieng v. National Water Conservation & Pipeline Corporation* [2014] eKLR, reinforcing the principle that fixed-term contracts terminate upon their expiry without the need for notice.

Application:
In applying the rules and case law to the facts, the court found that the Claimant was aware of his contract's expiration and had previously acknowledged the end date in communications with the Respondent. The court ruled that the Claimant could not expect an extension of the contract without a mutual agreement, which was not present. Consequently, the court determined that the Claimant was not unfairly terminated, and his claims for gratuity and leave days were not substantiated, leading to the dismissal of his claims.

6. Conclusion:
The court ruled that the Claimant was not unfairly terminated as his fixed-term contract expired by effluxion of time, and there was no requirement for notice. The Claimant's claims for gratuity and unpaid leave were dismissed, with the court concluding that he had not proven his entitlement to the reliefs sought.

7. Dissent:
There were no dissenting opinions noted in this case.

8. Summary:
The Employment and Labour Relations Court dismissed Dan Caxton Chogo Undusu's claims against The Jubilee Insurance Company of Kenya Limited, ruling that his employment had lawfully ended upon the expiration of his fixed-term contract. The decision underscores the legal principle that fixed-term contracts do not carry an automatic expectation of renewal and highlights the importance of mutual agreement for contract extensions. The outcome reinforces the necessity for employees to understand the terms of their contracts and the implications of fixed-term employment.

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