FKE wants court to resolve dispute on new labour laws

By Luke Anami

Employer's body wants an appeal they lodged two years ago against sections of the new labour laws heard and concluded this year.

Speaking to The Standard on their expectations this year, the Federation of Kenya Employers (FKE) through their chairman Dr Cleopa Mailu called for speedy settlement of their appeal.

"Our appeal on the implementation of the new labour laws has not been heard. That is not good as it is impacting negatively on business," Dr Mailu said.

In 2008, the Government enacted and implemented five new laws — The Employment Act 2007, Labour Institutions Act and the Work Injury Benefits Act 2007, Labour Relations Act and Occupational Health and Safety Act 2007.

The move sparked controversy, with FKE declaring that some of the provisions witnessed in the Acts are unconstitutional.

Among provisions that have drawn controversy include increase of maternity leave from the previous two months to three months at the employer’s expense, inclusion of paternity leave and casual labour requirements.

"Some of the sections of the new labour laws have led to increase of business costs," explained Dr Mailu.

Employers also opposed a section contained in the Work Injury Benefits Act 2007 requiring them to take insurance policies against injuries for all employees.

Heavy penalties

The employment Act, for example, imposes heavy penalties for minor acts or omissions that should under normal circumstances be dealt with under civil law.

For instance, the requirement to indicate age, sex or address of an employee attracts a penalty of Sh100,000 or imprisonment for two years or both. FKE has maintained the view that criminalisation of labour matters is contrary to the spirit of good industrial relations and flouts fundamental principles of the International Labour Organisation.

FKE also took issue with the implementation process. They were of the view that it was premature to implement the new laws, as Rules and Regulations governing it should have been prepared and discussed with the social partners and gazetted at the same time as the Acts.

But workers body — Central Organization of Trade Unions (Cotu) — called for the speedy implementation of the laws sparking off a heated debate that led to the filling of a court case by FKE.

"The cost of doing business has shot up due to other factors, including poor infrastructure, the cost of fuel and high energy costs, which are passed on to the consumer, especially in the manufacturing sector," said Dr Mailu.

Indeed, the implementation process suffered yet another blow after the High Court halted the operation of the Work Injury Benefits Act by annulling nine sections of the Act rendering it in operational following a case filed by the Law Society of Kenya.

Consequently, the courts have stood over matters related to compensation of employees for work related injuries and diseases.