Essar settles dispute with employees
By Kamau Muthoni | May 9th 2014
By Kamau Muthoni
Nairobi, Kenya: The legal stand-off between Essar Telecommunication Company and over 200 employees was settled after the parties reached an agreement.
Thursday, the parties agreed on the terms to secure the fate of those working at the company after it exits the communication industry.
The workers had moved to the court on grounds that they would be left out in the cold after Essar, which carries out its business under the brand name yu, decided to stop transacting and have its assets and services sold to the other telecommunication companies; Safaricom and Airtel.
The counsel of the two forged a consent before Industrial Court judge Justice Nduma Nderi in which the company agreed to try negotiate for the employees’ possible recruitment by either Safaricom or Airtel.
However, the deal exonerated Essar from blame in the event that any of the employees does not secure a place with the two.
Moreover, the employees would continue enjoying existing medical cover until they get alternative cover with the two counterparties in the proposed restructuring transaction or until the end of their employment with Essar.
The petitioners are also to get a bonus of a minimum 1 month’s salary and also get severance pay for 60 days for every completed year of service.
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