JUDGMENT OF THE COURT
By virtue of a renewable fixed term employment contract entered into on 10thMarch, 1992 between the respondent and the appellant, the respondent was employed by the appellant as an Accounts Assistant. The term of the contract was 3 years, and aside from a basic salary of Kshs.37,320/-, the respondent was entitled to house allowance of Kshs.1,000/-, 30 days annual leave, leave allowance of Kshs.900/-, medical allowance of Kshs.6,000/- and gratuity at the rate of 25% of basic salary upon successful completion of the contract. It was also a term of the contract that save for summary dismissal, termination of the same would be by either party giving 3 months’ notice or 3 months’ pay in lieu thereof. The contract also provided for service pay at the rate of 3 months’ basic salary for every year worked if the contract was terminated by the respondent on grounds other than gross misconduct. On this premise, the respondent commenced work in earnest and upon satisfactory c…