COTU Warns Employers Against Exploiting Casual Workers After Landmark Court Ruling

COTU Warns Employers Against Exploiting Casual Workers After Landmark Court Ruling

NAIROBI, Kenya — The Central Organization of Trade Unions (COTU) has issued a strong warning to employers across Kenya against underpaying casual labourers and outsourced workers, following a landmark court ruling that reinforces the principle of equal pay for equal work and expands labour rights for thousands of employees.

Speaking during a media briefing in Nairobi on Wednesday, June 17, COTU Secretary-General Francis Atwoli said the judgment marks a significant victory for workers who have long faced discrimination through outsourcing arrangements and casual employment contracts.

The labour movement leader accused some employers of exploiting legal loopholes by hiring workers through third-party agencies and paying them significantly lower wages than permanent employees performing the same duties.

“You find that somebody who comes to where you are working is doing the same job, but they are being paid half of what you get,” Atwoli said.

His remarks come in the wake of a court decision that granted outsourced and casual workers the right to receive equal treatment and remuneration comparable to employees holding permanent positions. The ruling also affirmed the right of such workers to join trade unions and benefit from collective bargaining agreements.

Court Declares Unequal Pay Discriminatory

According to details of the judgment, the court found that many outsourced workers were performing identical roles to their permanently employed colleagues, operating under the same performance evaluation systems and job descriptions.

Despite carrying out similar responsibilities, the workers were reportedly denied benefits available to permanent staff, including better salaries, medical insurance, pension contributions, bonuses, house allowances, and other employment protections.

The court ruled that such practices amounted to discrimination and violated provisions of the Constitution, the Employment Act, and internationally recognised labour standards.

“This has made employers negate their primary requirement of making sure that there are fair labour practices in our country,” Atwoli stated while reacting to the judgment.

The ruling is expected to have far-reaching implications across multiple sectors, particularly industries that heavily rely on outsourced labour, including manufacturing, security services, cleaning services, logistics, retail, and hospitality.

Boost for Workers’ Rights in Kenya

Labour experts say the decision could transform industrial relations in Kenya by strengthening protections for vulnerable workers who often face job insecurity and lower wages.

For years, trade unions have argued that outsourcing has increasingly been used as a cost-cutting measure at the expense of workers’ welfare. Employers, on the other hand, have defended outsourcing as a legitimate business model that offers operational flexibility.

However, the court’s latest interpretation appears to place greater emphasis on fairness and equality in the workplace, regardless of the employment arrangement under which a worker is engaged.

The judgment also reinforces the constitutional right of every worker to join a trade union and participate in activities aimed at protecting their interests.

Atwoli Hails Ruling as Historic Milestone

COTU has welcomed the decision, describing it as a turning point in Kenya’s labour movement and a major step toward eliminating workplace discrimination.

“I think this ruling is a milestone and will help most of our unions in the application of modern industrial relations practice in this country,” Atwoli said.

He urged employers to immediately review their employment policies and ensure compliance with labour laws to avoid potential legal action.

The union boss further emphasized that fair treatment of workers is not only a legal obligation but also a critical component of economic growth and social stability.

Implications for Employers and Workers

The ruling is expected to prompt companies across the country to reassess wage structures, employee benefits, and outsourcing arrangements. Human resource professionals and labour consultants anticipate increased scrutiny of employment contracts to ensure compliance with the court’s directives.

For thousands of casual labourers and outsourced workers, the judgment offers renewed hope for better pay, improved working conditions, and stronger workplace protections.

As Kenya continues to pursue labour reforms and promote decent work standards, the court’s decision is likely to reshape employment practices and strengthen efforts aimed at achieving fairness and equality in the workplace.

With COTU now urging strict enforcement of the ruling, employers face growing pressure to align their practices with the law and ensure that all workers receive the dignity, protection, and compensation they deserve.

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COTU Warns Employers Against Exploiting Casual Workers After Landmark Court Ruling