Former Telkom Kenya employees retrenched in 2006 have won an injunction against the company, preventing it from being sold until it has paid them KSh3.2 billion in severance packages.
HumanIPO reported earlier this year the company was looking to overturn a ruling it must pay off 996 employees laid off in 206, after the Court of Appeal last year upheld the golden handshake and severance package for the 996 workers.
The Business Daily now reports Justice Njagi Marete has issued an injunction preventing the company from being sold until it settles the cases.
“Pending the interparties hearing of this case, I hereby issue a temporary injunction restraining Telkom Kenya Limited and the attorney-general, or any person whatsoever acting on their behalf, from entering into a sale of Telkom Kenya to a third party, selling any of its 37 listed properties among others or until it shall have settled the claimants’ dues,” said Justice Marete.
The High Court had awarded a severance package based on two-and-half month’s salary for each year of completed service for the former workers, who had lost their jobs through phase one of a compulsory retirement scheme
“Focus is on payment of severance pay and this court therefore concludes that the same was not paid in a proper and even-handed manner to retrenchees in phase one, phase two and three,” Justice John Mwera ruled.
The company carried out a retrenchment programme in 2006, which affected more than 11,000 employees in a bid to cut costs, citing high indebtedness, declining revenues and high staff costs.
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