The Employment and Labour Relations Court has dominated that former staff of the defunct National Health Insurance Fund (NHIF) who decide to retire somewhat than be part of the newly established Social Health Authority (SHA) are entitled to an exit bundle.
The courtroom additionally affirmed that these absorbed into SHA will retain their NHIF salaries except lawfully altered via negotiation.
In a ruling judgment delivered on July 29, Principal Judge Byram Ongaya declared that the transition beneath the Social Health Insurance Act (SHI Act) quantities to redundancy for NHIF workers choosing retirement.
“The option to retire by staff of the defunct NHIF rather than to get absorbed in the service of the first respondent is a classical situation of redundancy,” the courtroom acknowledged, stating that such staff should obtain severance advantages consistent with the Employment Act and established practices.
The petition, filed by Patrick Kiogora Mwirigi and two others, challenged the opacity of the transition course of and the refusal to grant exit packages.
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Court Ruling on Retirement Package for Ex-NHIF Staff
The courtroom discovered that the respondents, SHA, the Public Service Commission, and the Attorney General had violated constitutional provisions on truthful labour practices.
Judge Ongaya famous that the denial of severance packages or discount of salaries for employees transitioning to SHA would quantity to discrimination.
Employees are entitled to equality earlier than the relevant legislation on redundancy per Article 27 of the Constitution and truthful remedy as supplied beneath part 5 of the Employment Act
The courtroom dominated that SHA should seek the advice of affected staff or their unions earlier than making any modifications to their phrases.
“An employee cannot be absorbed by a new employer in a transfer of undertaking at a lower salary without consent,” the decide stated.
The courtroom directed SHA and the Public Service Commission to compute and pay exit packages to all NHIF workers selecting retirement.
Order on Continuing NHIF Staff Salary
It additionally ordered that these competitively recruited by SHA will proceed to earn their earlier NHIF salaries except changes are made via correct consultations.
This ruling is anticipated to set a precedent for a way public sector transitions are dealt with, notably concerning worker rights throughout structural reforms.
In one other ruling on July 23, Justice Byram Ongaya ordered that workers beforehand working at NHIF who’ve been redeployed inside authorities establishments should hold their pay unchanged till they exit public service.
The identical applies to these absorbed by SHA, with all present deployment letters to be revised accordingly to replicate this resolution.
“Any letters already communicated to the staff of the defunct NHIF who have already been deployed within the wider public service be varied to reflect the retention of salary personal to self,” Justice Ongaya dominated.
