94 Young Phiroz Workers Get Redundancy Payments After Government Intervention

The Ministry of Labour and Social Security has helped 94 workers from Young Phiroz General Dealers receive redundancy payments after a dispute over contract changes.

‎The workers had reported that they were asked to sign new contracts without being paid for the old ones. The Ministry stepped in and guided both parties based on the Employment Code Act, which requires employee consent for any contract changes.

‎Since the workers did not agree to the new terms, the situation was treated as redundancy. The total amount owed K1,128,590.87 will be paid in three installments. The first payment of K545,274.43 was made on April 12, 2025.

‎Workers owed less than K9,000 have been fully paid, while those owed more than K10,000 will receive the balance by May 12, 2025.

‎The Ministry warned employers against taking advantage of workers and promised continued protection of employee rights. The affected workers will also receive support through the new ‘Productivity Clinic’ to help them find new job opportunities.