1. Background
1.1. The Appellant stated that she was employed by the Respondent as an Accountant on a fixed term contract running from 1 January 2013 to 31 December 2014.
1.2. On 7 January 2015, the Appellant was informed through a short message (SMS) that her employment had been terminated. She contended that the termination was wrongful, unfair, and malicious on the grounds that the Respondent had not provided any reason for the termination and had failed to accord her notification and a hearing as required under sections 41 and 43 of the Employment Act. She subsequently filed a claim before the Employment and Labour Relations Court.
1.3. In its defence, the Respondent maintained that the Appellant’s contract had lapsed by effluxion of time on 31 December 2014. The Respondent stated that a decision had been made not to renew the contract and that the Appellant had been duly notified that her contract would not be renewed.
1.4. Subsequently, following In its determination, the trial court found that the Appellant had been engaged on a two-year fixed-term contract which had been executed by the Respondent’s representative on 1 January 2013. The court noted that there was no evidence demonstrating that the contract had been renewed. However, there was an email communication indicating that the contract would not be renewed. On that basis, the court dismissed the claim.
1.5. Aggrieved by the decision, the Appellant filed an appeal challenging the dismissal of the claim.
2. Court of Appeal’s Determination
The primary issue before the Court of
Appeal was whether the Appellant had
been dismissed from employment or
whether the fixed term contract had simply
come to an end by effluxion of time.
- The Court found that the Appellant had been engaged on a two-year fixed-term contract running from 1 January 2013 to 31 December 2014. On 7 January 2015, a message was sent to the Appellant informing her that the contract would not be renewed.
- The Court noted that the contract had a clear commencement and expiry date and there was no evidence that it had been extended or renewed. If the parties had intended to extend or renew the contract, this would have been done before the expiry date.
- In considering the legal position on termination of fixed-term contracts by effluxion of time, the Court relied on the decision in Registered Trustees De La Salle Christian Brothers T/A St. Mary’s Boys’ Secondary School v Julius D M Baini where the Court stated: “In the view of the Court, there is no obligation on the part of an employer to give reasons to an employee why a fixed-term contract of employment should not be renewed. To require an employer to give reasons why the contract should not be renewed is the same thing as demanding from an employer to give reasons why a potential employee should not be employed. The only reason that should be given is that the term has come to an end, and no more… Reasons, beyond effluxion of time, are not necessary in termination of fixed-term contracts, unless there is a clause in the contract calling for additional justification for the termination.”
- The Court found that the Appellant was employed on a two-year fixedterm contract running from 1 January 2013 to 31 December 2014. A message was sent to the Appellant on 7th January 2015 informing her of non-renewal of the contract.
- The Court further observed that the Appellant served until the last day of the contract. After being informed that the contract would not be renewed, she proceeded to hand over the Respondent’s property, signed the handover report, and received her gratuity together with a certificate of service.
- Based on these facts, the Court held that the Appellant had not been dismissed from employment, whether constructively or otherwise. The contract simply came to an end upon the expiry date.
- Based on these facts, the Court held that the Appellant had not been dismissed from employment, whether constructively or otherwise. The contract simply came to an end by effluxion of time.
- The Court further held that a fixed-term contract creates no rights, obligations, or expectations beyond the agreed expiry date. Once the agreed termination date is reached, the contract terminates automatically unless the parties expressly renew or extend it.
