Kenyan B2B e-commerce startup, Wasoko, will no longer be compelled to retain nine ex-employees in its payroll after a court decision revoked the decision made in February this year.
- •The Employment and Labour Relations court had barred Wasoko from laying off the nine employees ahead of its merger with Egyptian e-commerce startup MaxAB.
- •Wasoko denied allegations made by the disgruntled employees that due process was not followed, arguing that redundancy notices were issued in December 2023 and that no labour laws were flouted.
- •After the stay order was made, Wasoko’s legal team said that the employees did not resume work despite the firm’s compliance with the February verdict.
“Before me are claimants who have, since obtaining the orders, declined to present themselves to work and in the case of one, taken steps to accede to the issue that brought them to court,” the court stated.
The ex-employees have expressed their discontent with the ruling, claiming that workplace hostility and limited access to work tools hindered their duties. As it stands now, the conflicting parties must prepare for a pre-trial on wrongful termination earlier filed by the employees.
Despite receiving about US$ 125 million in funding by 2022, Wasoko’s operational fortunes have been gutted down by macroeconomic difficulties. It had to vacate its Francophone markets in Ivory Coast and Senegal. In late last year, it announced a planned merger with MaxAB after it had finalized its restructuring process.
However, months later, no progress has been made. Wasoko’s valuation took another blow in March when an investor pulled out. This has further complicated the situation for the ailing company.
MaxAB, on the other hand, has been disadvantaged by the devaluation of the Egyptian pound. According to TechCrunch, the merger will be further delayed as both companies look forward to agreeing how they shall both own a unified entity.
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