Ex-Standard Group employees urge the government and relevant authorities to intervene in the payment of their dues

• Standard Media Group issued a layoff letter to more than 300 employees in July 2024, citing a difficult operating environment that impacted revenue generation
• The company promised to pay all affected employees their salaries until the time of departure and statutory payments under the 2007 Labor Code.
• However, three months after the notice, the former employees are demanding urgent government intervention to hold the organization accountable
• An employee representing the affected workers revealed to TUKO.co.ke that they are going through tough times as none of the agreed areas have been paid

Former employees of Standard Group PLC are demanding urgent government action to hold the organization accountable for unpaid dues, unremitted contributions and long-term financial problems.

In July 2024, the company issued a letter of resignation to more than 300 employees, citing a difficult operating environment impacting revenue generation.

The company promised to pay all affected employees their salaries until the time of departure and statutory payments under the 2007 Labor Code.

However, three months after the termination, the former employees have not received any payment from the company.

Why former Standard Group employees want government intervention

An employee named Tina (not her real name) who represented the affected employees revealed TUKO.co.ke that they are facing difficult times as none of the agreed areas have been paid for

Tina opened up about the ordeal the laid-off employees have gone through since they were put on compulsory leave in August 2024.

“We would be paid within one year (12) months, with the first installment in September 2024.

“But the company has not paid even the eight months (arrears) which were due to payment delays during the period we were working,” Tina said.

She explained that the company paid half of the monthly salary every half month, ignoring the balance, culminating in a full eight months of non-payment.

“Now they have refused to pay for the areas. We are not included in the monthly payroll as agreed because they say we have not worked in September 2024,” she exclaimed.

What legal deductions are involved?

Tina argued that the company the National Social Security Fund (NSSF) more than KSh 40 million in areas where no wages of the dismissed workers have been waived since 2022.

She also highlighted that the company paid PAYE to the Kenya Revenue Authority (KRA) in random years, leaving many at a crossroads in applying for a tax compliance certificate.

“In 2018, they only transferred PAYE for six months, and the rest remains pending. If you ask, all they say is that they are working on it. You cannot even apply for a job or tender without a tax compliance certificate. NHIF was only paid until February 2024. These are some of the difficulties we are going through,” she said.

What former Standard Group employees want

In a press statement issued on Thursday, November 14, the workers called on the Ministry of Labour, the Retirement Benefits Authority, the Commissioner for Cooperative Development and other relevant authorities to take decisive action and ensure accountability.

They call for:

• Immediate remittance of all deductions to NSSF, NHIF, private pension schemes and Sacco savings, enabling former employees and Sacco members to access the services and benefits to which they are entitled under the law.
• Full and timely payment of all unpaid salaries owed to current and former employees of Standard Group PLC for June, July, August 2023 and March to July 2024.
• Compliance with the severance plan as promised to dismissed employees, with immediate settlement of overdue installments for September, October and November 2024.
• Establishment of a clear timeline for the recovery of the Sacco fund under the supervision of the CCD, providing Sacco members with transparency and a clear path to recover their savings.

What Standard Group says

However, in an exclusive answer to TUKO.co.keLaila Denise, head of Standard Group’s strategy and innovation department, has dismissed the former employee’s allegations.

The group stated that the decision was made after considering the difficult operating environment and its long-lasting effect on revenue generation.

The company said all affected employees will receive compensationincluding payment of any accrued and unused leave days.

What other company has laid off employees?

G4S Kenya has declared resignation affects approximately 400 employeesciting the harsh economic conditions.

The leading one security The courier company said the job cuts will be in effect from November 4, 2024 to April 2025.

The layoffs are likely to affect employees in various G4S Kenya offices across the country, working in both management and union membership.

G4S’s dismissal decision followed the Tile and Carpet Center’s announcement to lay off workers in Athi River’s production department.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke

Source: TUKO.co.ke