Family Bank has fired hundred of staff but the employees have decided to sue the employer saying the dismissal was unfair.
They have also written to the Ministry of Labour and Cotu Secretary General Francis Atwoli to intervene.
The bank management declared some departments redundant without prior communication and at a time the country is under duress because of the coronavirus pandemic.
President Uhuru Kenyatta has directed companies not to fire their employees during this period of COVID-19 even if businesses are not doing well but the Family Bank Managing Director David Thuku has defied the directive.
“We continue with various cost-cutting measures and in that respect, we have undertaken a restructuring programme to resize the support functions at the Head Office in order to achieve meaningful and sustainable revenue growth,” Thuku stated.
The bank ambushed the affected employees with termination letters on Monday.
Interestingly, unlike other companies that have cited COVID 19 as reason for adjustments and pay cuts, Family Bank did not blame their unfair actions on the pandemic.
The lender’s Human Resource boss Elijah Kariuki said the sacking were prompted by the automation processes that have changed the operating environment.
He told the affected staff to apply for opportunities they may advertise.
In 2017 Family Bank sent home 150 employees in a move they said was prompted by the need to align its business to the current operating environment.