Former workers of Semiconductor Technologies Limited in Nyeri are asking the company and labour authorities to intervene over payments they claim have remained unpaid since a staff reduction exercise in 2023, with one former worker telling our desk that several employees were sent home after being informed that the company was reducing its workforce, but the money they were expecting after leaving employment has never been paid.

Semiconductor Technologies Limited is based inside Dedan Kimathi University of Technology in Nyeri and is an anchor client at the Dedan Kimathi Science and Technology Park. The university says the company operates through a public private partnership arrangement with the institution and manufactures nanotechnology products including integrated circuits and sensors. The university previously stated that the factory had employed 80 young people and trained more than 150 others.

The complaint received by our desk says that some employees were fired in 2023 after being informed that the company needed to reduce the number of workers. The complainant says the workers did not object to the reduction itself, since they understood that a company could decide to reduce its workforce, but their concern was what happened afterwards, particularly the payments that were expected after their employment came to an end.

Original complaint received by our desk ¶

The former worker asked that their identity be kept confidential and shared the following complaint

“Good morning Cyprian, kindly hide my identity, there is this company known as Semiconductor Technologies Limited in Nyeri situated in Dedan Kimathi University block D. Some of our colleagues were fired back then 2023, some were told that workers were to be reduced which wasn't bad but the issue is the payments which were supposed to be paid but till date, we have not yet received any amount.”

The complaint suggests that the main dispute is not simply about the decision to reduce the workforce, but about whether the former employees received all the money they were entitled to after the employment relationship ended. The worker says the affected employees have been waiting since 2023 and claims that, despite the passage of almost three years, they have not received any amount of the payments they were expecting.

That distinction matters because Kenyan employment law sets out conditions that employers must meet when terminating employment on account of redundancy, including notice to the employee and the labour officer, payment of outstanding leave where applicable, payment of notice or wages in lieu of notice and severance pay of not less than 15 days' pay for each completed year of service.

The Employment Act also provides that disputes between employers and employees over rights and liabilities arising from a contract of service can be taken to a labour officer or lodged before the Employment and Labour Relations Court. The law further provides mechanisms for employees to complain over unpaid wages and other employment dues.

A related case involving the same company ¶

There is already a publicly available employment case involving Semiconductor Technologies Limited that was heard at the Employment and Labour Relations Court in Nyeri, although the circumstances were different from the complaint now received by our desk.

In Mwai v Semi-Conductor Technologies Ltd, Cause E001 of 2023, the claimant, Andrew Waigwa Mwai, told the court that he had worked as the company's Operations Manager before his employment was terminated in November 2022. He challenged the dismissal and claimed compensation, salary in lieu of notice, unpaid salary, house allowance and leave arrears, among other reliefs.

The existence of that case shows that employment related disputes involving the company have previously reached the Employment and Labour Relations Court in Nyeri.

The latest complaint therefore raises questions that deserve a response from Semiconductor Technologies Limited, particularly on whether the workers mentioned by the complainant were formally declared redundant, what payments were communicated to them at the time they were sent home and whether any outstanding amounts remain on the company's records.

What does the law say about redundancy? ¶

Under Section 40 of the Employment Act, redundancy is a recognised way of ending employment, but an employer must follow certain requirements when doing so. Where the employee is not a member of a trade union, the employer is required to notify the employee personally in writing and notify the labour officer, while the law further provides for consideration of seniority, skill, ability and reliability when selecting employees affected by the redundancy. The law also provides for payment of outstanding leave, at least one month's notice or one month's wages in lieu of notice and severance pay of at least 15 days' pay for every completed year of service.

This means that the fact that a company decides to reduce its workforce does not by itself settle the question of what employees are owed after they leave. The actual circumstances of each worker's termination, the contracts they held, the length of service, the notices issued and any payments already made would have to be examined before determining what each former employee may be entitled to.

The workers' complaint therefore needs to be looked at against their individual employment records rather than assuming that every person affected by the 2023 exercise was entitled to the same amount. What the former employees are now asking for is clarity on the money they say was promised or was due to them and why they claim it has remained unpaid for so long.

Labour authorities asked to intervene ¶

The State Department for Labour and Skills Development, through the relevant labour office in Nyeri, is one of the authorities that can receive employment complaints and assist in resolving disputes between workers and employers. The Employment Act allows an aggrieved employee to complain to a labour officer where questions arise over contractual rights and liabilities, while unresolved matters can proceed to the Employment and Labour Relations Court.

The Employment and Labour Relations Court in Nyeri is equally relevant if the former workers have claims that cannot be resolved through the labour office. The court has previously dealt with an employment dispute involving Semiconductor Technologies Limited, making the institution particularly relevant if the current former employees decide to pursue their claims through the legal system.

There is another issue that should be addressed by the workers themselves. If the complaint concerns payments that became due in 2023, the former employees should preserve their employment contracts, termination or redundancy letters, payslips, payment records, emails, text messages and any communication from the company concerning the staff reduction and promised payments. Such documents would help establish exactly what was owed to each worker and what, if anything, has already been paid.

Questions for Semiconductor Technologies Limited ¶

Semiconductor Technologies Limited should explain whether the employees referred to in the complaint were formally declared redundant in 2023, how many workers were affected, what terms were communicated to them when they left and whether any outstanding payments remain unpaid. The company should further clarify whether the affected workers received their notice pay, accrued leave payments and any severance that was applicable to their individual circumstances.

The company should equally explain whether the former employees raised the issue internally after leaving and, if so, what response they received from management. If payments were delayed because of a dispute over the amounts owed, the company should state that clearly and explain what process was put in place to resolve the matter.

The complaint is particularly significant because Semiconductor Technologies Limited is operating within the Dedan Kimathi Science and Technology Park, a facility that the university describes as bringing together government, industry and academia, with the university identifying STL as one of the park's anchor clients.