Laico Rejency on the spot for discriminating employees

Law Firm Linked to Wetangula on the Spot for Allegedly Holding Millions of Laico Regency Hotel Employees Gratuity Pay

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Laico Regency is on the spot for throwing its staff under the bus in an unfair, inhuman and degrading manner.

Axed Laico Regency Hotel staff are now crying foul after a law firm linked to Wetangula withheld payment to hundreds of employees who were sent home on unpaid leave since 31st March 2020.

The staff are accusing the hotel lawyer Ahmed Aden as among a few other individuals of engaging in a scheme to take away their money running into millions.

A few weeks ago, the employees also accused the hotel management of failing to release the Sh200 million meant to pay those who were declared redundant due to change of management.

The workers through their representatives Kudheiha argued that even after giving the management their details to process the payment as was requested, nothing has been forthcoming since July last year.

“The hotel was closed on 31st March and employees sent on unpaid leave. The Union met the hotel management and came up with a solution that the hotel will declare redundancy to all employees. Unfortunately, the calculation for all the benefit be calculated did not include Gratuity which is the junk pay. The hotel lawyer Mr. Ahmed Aden of Aden and Wetangula is insisting they will not pay even if it is in the CBA.” One of the employees who spoke on condition of anonymity told the Kenyan Herald.

The employees are further accused the lawyer of taking the responsibility of managing their gratuity pay as to cover up to the schemes to deny pay to the staff yet the case is not in court.

Aden and Wetangula is coincidentally the same law firm which facilitated the sale of the hotel in 2008 where employees were denied gratuity benefits running into millions.

“The staff of Laico Regency Hotel continues to suffer after the Nairobi lawyer Dr. Aden deposited all the money in his account and now cannot pay the employees their benefits.”

Our source also told the Kenyan Herald that the list the hotel gave to KCB Bank had a total of 130 million shillings, which is 50% less than what they are entitled to receive.

Many of the staff had worked for the Hotel for over 28 years where they constantly faced mistreatment and discrimination after foreigners were paid huge amounts of money compared to the peanuts they received.

Their problems go back to 2008 when the Hotel was sold to Libyans and changed its name from Grand Regency Hotel to Laico where many of them did not receive their gratuity dues.

A decade later, and compound by the unprecedented effects of the coronavirus pandemic, the Kenyan employees are begging to be paid their gratuity dues and salaries amounting 200 million and 10 million shillings.

They are now appealing to President Uhuru Kenyatta and all relevant ministries to intervene for the sake of all Laico Regency Hotel employees welfare.

Many of them are going to bed hungry and cannot afford basic needs. They are living like paupers and paying rent, water and electricity bills are an uphill task that’s almost impossible.

In a letter from Kudheiha, the employees said that Laico Hotel secured Sh200 million through the Libyan Embassy KCB account University Way branch to cater for the redundancy process but those affected have not been paid

In protest, the lawyer accused the workers union of inciting employees against the hotel, noting that there is no 200 million shillings set aside for the workers as alleged.

 

The lawyer wants the entity to respect rules and laws which govern the negotiations, saying that no employee will be paid what they are not entitled to receive.

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