Companies

Court orders Jade Collections to pay sacked staff Sh2.77m

COURT

Milimani Law Courts: Jade Collections declined to respond to a suit filed by sacked staff at the Industrial Court in 2013. PHOTO | FILE

The Industrial Court has ordered fashion retailer Jade Collections Ltd to pay a dozen employees it sacked in April, 2013, Sh2.77 million in damages after they joined a trade union.

Judge Nzioki wa Makau on Monday directed the apparel seller to compensate each of the 12 workers it fired with one month’s salary in lieu of notice, half-month pay for each year served, and special damages equivalent to 12 months’ pay.

Jade Collections declined to respond to the suit filed in August 2013, forcing the court to make an ex-parte judgement and also slap the clothes shop with the legal costs of the case.

The staff members were suspended and later dismissed for joining the Kenya Union of Commercial, Food and Allied Workers (Kucfaw).

Justice wa Makau held that employees have the right to join a workers’ union and said Jade Collections’ move violated their civil liberties and rights spelt out in the ILO convection.

“Article 36 and 41 of the Constitution of Kenya make provisions on the freedom of association concomitant with these international labour standards,” said Justice wa Makau in his verdict.

“The termination meted out through suspensions in April 2013 to date is illegal and unfair within the meaning of Employment Act section 45. The claimants are entitled to receive compensation from the respondent,” reads part of the 13-page judgement.

George Mutuma, one of the dismissed staff, will receive damages totalling Sh435,000 — calculated at his monthly pay of Sh30,000.

Others who will receive compensation include Francis Thiong’o (Sh435,000), Sylvester Okulo (Sh290,000), Simon Musili (Sh217,500) while Simon Wanjohi, Kevin Odalo and Daniel Otieno were awarded Sh202,500 each.

Jade Collections is owned by Bernice Mburu and opened its first store along Nairobi’s Tom Mboya Street in 2011 and has now expanded to set up shop in Thika and Eldoret.

Kucfaw is locked in a court battle with Naivas and Jade Collections seeking to compel the retailers to allow their workers to be members of the union, which also represents workers of Nakumatt, Uchumi, Tuskys, Chandarana, Ukwala and Eldomatt.

The Industrial Court, now renamed Employment and Labour Relations, a fortnight ago lifted the suspension of 91 workers of retail chain Tuskys Supermarket.

The workers, based at the supermarket’s Beba Beba branch on Nairobi’s Tom Mboya Street, were suspended on suspicion of fraud.