• Standard Media Group has issued a layoff notice to more than 300 employees in July 2024, citing a difficult operating environment affecting its revenue generation.
• The company has promised to pay all affected workers their salaries until they leave and statutory payments based on the Employment Act 2007.
• 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 difficult times as none of the agreed areas have been paid.

Former employees of Standard Group PLC are demanding urgent government intervention to hold the organization accountable for unpaid dues, unpaid contributions and prolonged financial difficulties.

In July 2024, the company issued a notice of dismissal to more than 300 employees, citing a difficult operating environment affecting its revenue generation.

The company has promised to pay all affected workers their salaries until they leave and statutory payments based on the Employment Act 2007.

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However, three months after the notice, the former employees have still not received a single payment from the company.

Why former Standard Group workers want government intervention

An employee named Tina (pseudonym) representing the affected workers revealed to TUKO.co.ke that they are going through difficult times since none of the agreed areas have been paid

Tina recounted the ordeal experienced by the laid-off workers since their compulsory leave in August 2024.

“We were supposed to be paid in one year (12) months, with the first payment due in September 2024.

“But the company didn’t even pay the eight months (of arrears), due to late payments during the period we were working,” Tina said.

She explained that the company paid half of the monthly salary every two months, leaving out the balance, resulting in a full eight months of non-payment.

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“Now they have refused to pay the zones. We are not included in the monthly salary as agreed because they say we did not work in September 2024,” she shouted.

What legal deductions are these?

Tina argued that the company should National Social Security Fund (NSSF) over KSh40 million in areas where salaries of retrenched workers have not been remitted since 2022.

She also pointed out that the company had a history of making PAYE payments to the Kenya Revenue Authority (KRA) in random years, which left many people at a crossroads when applying for a certificate tax compliance.

“In 2018 they only paid PAYE for 6 months, and the rest is pending. If you ask, they just say they are working on it. You can’t even apply for a job or a call d “Offers without a tax compliance certificate. The NHIF was only paid until February 2024. These are some of the difficulties we are going through,” she said.

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What former Standard Group employees want

In a press release issued on Thursday (November 14), the workers called on the Ministry of Labor, the Retirement Benefits Authority, the Commissioner for Cooperative Development and other relevant authorities to act decisively and ensure accountability.

They demand:

• Immediate remittance of all withheld deductions to NSSF, NHIF, Private Pension Schemes and Sacco Savings, enabling former Sacco employees and members to access the services and benefits to which they are entitled under the law.
• Full and prompt payment of all salary arrears owed to current and former employees of Standard Group PLC for June, July, August 2023 and March to July 2024.
• Adherence to the severance pay plan as promised to dismissed employees, with immediate payment of outstanding payments for September, October and November 2024.
• Establishing a clear timeline for the recovery of Sacco funds under the supervision of the CCD, providing Sacco members with transparency and a defined path to recover their savings.

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What the Standard Group said

However, in an exclusive response to TUKO.co.keLaila Denise, Standard Group’s chief strategy and innovation manager, rejected the former employee’s allegations.

The group said the decision was taken after taking into account the challenging operating environment and its prolonged effect on revenue generation.

The company declared all employees affected will receive compensationincluding payment for accrued and unused leave days.

What other company has laid off employees?

G4S Kenya has declared a layoff which will result in affects around 400 workersciting difficult economic conditions.

The leader security and the courier services company said the job cuts would take effect from November 4, 2024 to April 2025.

The dismissal will likely affect employees in various G4S Kenya offices across the country, working in both management and union membership categories.

G4S’s dismissal notice follows the Tile and Carpet Center’s dismissal notice from its Athi River production department.

Source: TUKO.co.ke