Exclusive: Wasoko ex-employees discontinue wrongful termination suit

Nine ex-Wasoko employees will no longer pursue a wrongful termination lawsuit against the e-commerce company, one month after a Kenyan court overturned an existing order that ordered Wasoko to keep them on payroll.

On June 11, the Employment and Labour Relations court gave the employees 21 days to prepare for a pre-trial hearing, but they failed to meet that deadline. The case will now be dismissed.

The ex-employees will not file a fresh suit, citing financial and time concerns.

“Most of us do not have jobs, so the cost is a hindrance,” one of the ex-employees told TechCabal. “Legal costs and the likelihood of a loss means we may end up paying Wasoko. The average period for a full suit is three years and more.”

Had the case proceeded and the petitioners won, Wasoko could have been obligated to pay the employees the same exit packages. The petitioners argued it wasn’t fair that employees who worked for Wasoko for a longer time received more money than those who had left “stable” jobs to join the company.

“We can confirm that we adhered to the judicial process, allowing it to take its course. As of June 11th, the court ruled in our favour and vacated all interim orders that had been issued against the company,” Wasoko told TechCabal.

Another ex-employee claimed the court ignored most of their submissions. In their prayers submitted to Judge Nzioka wa Makau in January 2024, the employees argued that the matter was urgent as they faced irreparable harm if the court did not hear their case promptly.

They also requested the court to compel Wasoko to address their complaints before replacing their roles.

“The judge ignored most of our submissions and relied on one affidavit signed in duress by one of us who wanted to exit the suit,” one petitioner told TechCabal. “The main suit was to be with the same judge, so it was difficult to prosecute the matter well. This would involve costs if we lost.”

The employees filed the lawsuit in January after Wasoko announced plans to merge its operations with Egypt’s MaxAB. Initially projected to conclude in April, the merger is still ongoing. The companies plan to rebrand the combined business, but neither party has confirmed a completion date.

Wasoko told TechCabal that it cannot share specific details on the date “due to the sensitive nature of the merger.”

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