Ex-Telkom staff fight for dues hits another hurdle

Former Telkom Kenya employees seeking Sh1.4 billion retirement payoff from the defunct State corporation have lost a bid to enforce a settlement agreement.

High Court judge Alfred Mabeya declined to enforce the agreement the 997 former employees had entered with Telkom, after establishing that the workers had not met certain requirements.

The Deed of Settlement, dated August 8, 2014, required the former workers through their lawyer to prepare and submit to Telkom’s lawyers duly executed consents withdrawing or marking all pending cases they have against Telkom.

“It was then that Telkom’s lawyers are enjoined to execute such consents and file them in the respective suits. It is only then that the obligations as to payments on the part of Telkom shall arise,” Justice Mabeya said.

He said it is only after complying with the said provisions of the deed that the former workers can demand specific performance by Telkom, failure to which they can file a case on the same.

Telkom had in its arguments also said it had not authorised its lawyer to draft the agreement, a claim the judge said was not honest on the part of the former employer.

READ: Former staff accuse Telkom of reneging on 1.2b retirement deal

He said a lawyer has an implied authority to enter into a compromise on behalf of his client adding: “This is a clear statement of the law that does not require any authority.”

He noted that it was not in dispute that the 997 former employees dedicated their youthful years to Telkom and that they offered their services as best as they could to the company which “ immensely benefited” until it terminated those services during its staff rationalisation programme.

“It is regrettable that even after two courts—the High Court and the Court of Appeal,— have pronounced that Telkom ought to pay the 997 former employees certain monies, the company is still bent on postponing its day of reckoning,” the judge said.

The judge observed that the company’s bid to extend the legal battles would subject the 997 former employees to further suffering and asked shareholders to also consider the element of interest that will ultimately be payable on the amount to be awarded to the former employees.

“No amount of postponement can save Telkom from its legal obligations. If the law and procedure would have allowed, the proceedings should have terminated at this juncture but this is not the case,” Justice Mabeya said.

The workers were retrenched in 2006, but Telkom was found to have acted discriminatorily by the High Court.

The decision was upheld by Court of Appeal judges who ruled and directed Telkom to compensate the employees with Sh3.2 billion.

The laid off staff later entered into an out- of- court agreement with Telkom in August last year where they settled for Sh1.4 billion.

The reduction of the claim to Sh1.4 billion was supposed to be a relief to Telkom because the Labour and Relations Court had in April 2014 stopped the firm from disposing of its key assets.

The former employees had argued that they feared the firm would have no attachable assets if the sale was allowed.