Moses Kamau and Six Others v. Signature Holdings (EA) Limited

The COVID-19 pandemic has affected several industries, with some feeling the effects of the pandemic more than others. The hospitality industry, in particular, has been significantly impacted. This can be attributed to the measures put in place by the government to stop the spread of the virus, including banning international flights, introducing partial lockdowns and shutting down restaurants, social clubs and bars. Many employers have had to review their operations and introduce measures such as salary cuts, flexible working arrangements or sending employees on unpaid leave in a bid to maintain their business as a going concern.

In one of the first cases of its kind, employees filed suit against an employer, challenging the employer’s decision to send them on unpaid leave. They also filed an interlocutory application seeking to set aside the employer's decision pending the hearing and determination of the case. The court declined to grant the orders sought and encouraged parties to explore negotiating in good faith, given that the effects of COVID-19 on employment relationships are novel issues for all parties.

The case is pending before the court for hearing of the main suit.

We attach a copy of the ruling for your reference.