Restaurant Chain, Java House, plans to send home some of its workers according to an email sent to newsrooms. The eatery says that it is currently operating at only 30% capacity due to the social distancing requirements set by the government.
In addition, Java has suffered a sharp decline in demand due to the effects of Covid19. The firm expects demand to remain low for a prolonged period.
In April this year, the restaurant introduced a 40% pay cut on all employees and sent some employees on unpaid leave in an attempt to reduce cost.
Java House says that during the last few months, they have sought all means to cut expenses in the business, including negotiating for rent reduction, reviewing labor schedules, cutting utility expenses etc. “Unfortunately, the business is potentially over resourced at the current level of performance,” says the company.
The restaurant is offering a voluntary exit package to its 2,200 employees spread across Kenya, Uganda, and Rwanda. Employees who take up the offer will receive; one and a half month’s pay, 15 days pay for every year worked, payment for unutilized leave days, and a medical cover up to March 2021.
Depending on the outcome of the voluntary exit program, Java may also start a redundancy program which will be in line with the set labor laws.
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