On distinguishing between fixed-term and indefinite employment contracts in redundancy and termination cases, and the necessity for employers to adhere to the provisions of the Employment Act and any applicable CBAs when conducting redundancies: The case of Kenya Engineering Workers Union v Kenya General Industries Limited [2025] KEELRC 1496 (KLR)

Court: Employment and Labour Relations Court at Mombasa
Judge: Justice K. Ocharo
Date: 22 May 2025
Case Number: Cause E074 of 2022
Outcome: Claim dismissed

Background:
The Kenya Engineering Workers Union (Claimant) filed a suit on behalf of several grievants, alleging unfair termination of employment by Kenya General Industries Limited (Respondent). The Claimant maintained that a recognition agreement and a negotiated Corrective Bargaining Agreement (CBA) were in place at all relevant times. The Respondent countered that the grievants were employed under individual fixed-term contracts, each of which expired without renewal, and thus their employment was not unfairly terminated.

Key Issues:

• Whether the grievants were employed under fixed-term contracts or indefinite contracts.
• Whether the Respondent complied with the provisions of Section 40 of the Employment Act and the terms of the CBA in the alleged redundancy process.

Court's Findings:
The Court found that the grievants were employed under individual fixed-term contracts that expired at different intervals. As such, their employment was not terminated unfairly but rather ended upon the expiration of their respective contracts. Consequently, the Court held that the Claimant's case lacked merit and dismissed the suit.

Legal Implications:
This judgment underscores the importance of distinguishing between fixed-term and indefinite employment contracts in redundancy and termination cases. It also highlights the necessity for employers to adhere to the provisions of the Employment Act and any applicable CBAs when conducting redundancies.

For further details, you can access the full judgment Here