208 ex-KVDA workers’ bid to sue over retirement pay flops

They claimed KVDA promised three months’ pay instead of notice, severance pay, leave encashment, transport allowances, and a “golden handshake”.

However, the workers alleged that the authority later unilaterally reduced these benefits and applied discriminatory payment practices favouring employees aged over 50 and granted tax exemption on the payments made to them.

After identifying the discrepancies in 2019, the group reported the matter to the Commission on Administrative Justice (CAJ), hoping for mediation.

This proved fatal to their case when CAJ closed their file in July 2024, citing a lack of jurisdiction. By then, the three-year limitation period under Section 90 of the Employment Act had expired.

In their January 2025 application seeking court permission to file their case out of time, the workers advanced two key arguments, including continuing injury and fraud.

They argued KVDA’s failure to pay full benefits constituted an ongoing breach and that the State firm concealed the underpayment, which was only discovered when CAJ ended mediation. They relied on Article 159 of the Constitution to urge the court to disregard procedural technicalities and precedents where courts extended time limits for justice.

However, the court rejected both arguments, stating there was no continuing injury or fraud.

The court said terminal dues payment is a one-time event, and in this case, the clock started ticking in 2018.

"Miscalculation or underpayment of terminal dues is an event, not a continuing wrong. Such payments are an event, and the cause of action accrues on the date of payment," said the judge.

She ruled the fraud allegations were unsubstantiated as the workers failed to detail how KVDA concealed the underpayment or who was responsible for the alleged fraud.

"The averment by the applicants that the payments made to them were fraudulent has not been explained. No mention is made of the actions that constituted fraud or the person(s) alleged to have committed the fraud," said the court.

She emphasized courts cannot extend statutory deadlines for normal contractual disputes or employment claims for payment of terminal dues, which ought to be taken to court within three years as provided in section 90 of the Employment Act.

KVDA had opposed the application, citing Section 90 of the Employment Act, which states that employment disputes must be filed within three years of the grievance arising.

The authority insisted the voluntary early retirement payments were a one-time event in 2018, not a "continuing injury."

It added that the delays caused by CAJ mediation did not legally excuse the workers’ failure to sue on time and that no evidence proved fraud.

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