Economy

GDC bosses contract renewal suit flops

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Justice Onesmus Makau. PHOTO | KEVIN ODIT | NMG

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Summary

  • Five employees of Geothermal Development Company (GDC)have failed to convince a judge to compel the power generating company to renew their contracts for a period of five years.
  • Although Justice Onesmus Makau noted that the former general managers had proved that they were discriminated against by failing to grant them the extension as expected, he faulted them for consenting to the new contracts with inferior terms.

Five employees of Geothermal Development Company (GDC)have failed to convince a judge to compel the power generating company to renew their contracts for a period of five years.

Although Justice Onesmus Makau noted that the former general managers had proved that they were discriminated against by failing to grant them the extension as expected, he faulted them for consenting to the new contracts with inferior terms.

Justice Makau said the five, Dr George Mwongela Muia (GM-Strategy, Research and Innovation), Simon Kiplangat (GM- HR and Admin), Joanne Wamuyu (GM- corporate service), George Kinyanjui (GM-Drilling and Infrastructure) and Beatrice Kosgei (company secretary) failed to prove that the new contract terms that reduced their period from five to one year, amounted to constructive dismissal.

The five wanted the court to issue a permanent order barring the employer from removing their names from the payroll.

“Again for the same reasons, I decline to grant the prayer that the new contract signed be deemed to be for a five-year term,” the judge said.

He observed that compelling the employer to sign a five-year contract would amount to forcing parties to rewrite a contract, to correct a bad bargain.

In 2018 the company published new Human Resource Policy & Procedures Manual, which varied the tenure from 4 to 5 years and their grade from GD1 to GD2.