Casual employment is widely misused in Kenya, often to deny workers their statutory rights. Fortunately, Section 37 of the Employment Act, 2007 offers protections for workers wrongly classified as casuals.

Understanding Section 37 in Regards To Casual Employment

According to Section 37(1)(a), if a casual employee works for one continuous month or performs work that cannot be completed in a day, their employment automatically converts into a term contract. This means such employees are entitled to benefits such as leave, notice pay, and protection from unfair termination.

Furthermore, Section 37(3) provides that such employees are deemed to be on a contract of service under the same terms and conditions as other employees in comparable jobs.

Misuse of Short-Term Contracts

Employers often exploit loopholes by placing employees on rolling short-term contracts (e.g. 3 months) to avoid offering permanent terms. However, the courts have ruled that continuous renewals over an extended period signal an intention to form a permanent employment relationship.

Landmark Case Law

In Kenyatta University v Maina [2022] KECA 1201 (KLR), the Court of Appeal ruled that the respondent, who had been on consecutive 3-month contracts for over 9 years, was not a casual employee. Her dismissal without notice or terminal dues was unlawful.

Also, in Josephat Ndirangu v Henkel Chemicals (EA) Ltd [2013] eKLR, the court held that repeated renewals of short-term contracts created a legitimate expectation of continued employment.

Why This Matters in Casual Employment Laws in Kenya?

Employers who misclassify staff to avoid legal obligations may face costly litigation, damages, or reinstatement orders. Employees, on the other hand, should be aware of when their rights under the Act accrue.

At F.M. Muteti & Co. Advocates, we assist employers with lawful contract structuring and advise employees whose rights have been denied.

📧 legal@fmlawadvocates.co.ke 📞 +254 711 333 222

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