In a recent legal development, a Kenyan court has delivered an unexpected verdict that impacts Wasoko, a B2B e-commerce startup preparing for a merger with Egyptian counterpart MaxAB. The backdrop of this legal challenge involves Wasoko’s decision to lay off several employees in January 2024. This action led to a lawsuit filed by nine of the dismissed employees, who claimed that their termination was illegal.
In response to the lawsuit, the court in February 2024 initially ordered Wasoko to reinstate the nine former employees to the company’s payroll, following their dismissal in December 2023. This directive was part of an interim order while the case was being considered.
However, the court has now reversed its earlier decision, citing new information that suggests the employees may not have presented the complete circumstances of their termination. Despite Wasoko complying with the court’s initial order and reinstating the employees, it was reported that none of the nine returned to their duties. Moreover, it was revealed that one of the employees was still actively employed by Wasoko at the time the court issued its first ruling.
The court reasoned that it would be unjust to require Wasoko to maintain the employees on its payroll if they were not actively working. Consequently, the court has rescinded its previous directive.
The employees have expressed dissatisfaction with the court’s latest ruling. They argue that while they were occasionally permitted to work remotely, they faced challenges due to inadequate resources and a suboptimal office environment.
As the legal proceedings continue, both parties are preparing for a pre-trial hearing to address the allegations of wrongful termination brought forth by the employees. This case adds a layer of complexity to Wasoko’s ongoing business plans, including its anticipated merger with MaxAB.
