Court Bars Mediamax Management from Subjecting Employees to Mandatory Pay cuts

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Earlier this Month, Mediamax Limited that owns K24 TV announced a mandatory pay cut of between 20% and 50 % of all its staff to cushion the company in the wake of the COVID-19 pandemic.

In a statement issued on Friday, April 17th MediaMax announced that it had reached the decision after a meeting by the top leadership.

It was decided that it was the best measure to protect the company during the pandemic.

“We have come up with several measures to ensure that we try to sustain and keep the company afloat during this pandemic and to ensure that the business at this stage survives and sustains itself. Among the proposed measures that will directly apply will be a reduction of between 20 per cent and 50 per cent on Gross Monthly Pay based on job levels effective April 2020,” read the notice

A section of employees moved to court to petition the move to be subjected to mandatory pay cut.

Exactly 7 days since the statement made headlines, the court has issued an injunction stopping the company from effecting the move.

In a statement seen by Ghetto Radio News, the court also barred the company from terminating contracts of some employees amid this COVID-19.

“Pending inter partes hearing, or further orders by the court and in view of any adverse effect of covid 19 situation on implementation of the respective contracts of service respectively between the petitioners and the respondents by itself, its directors, its officers, its employees  or by its agents is hereby prohibited from terminating the respective contracts of service or discriminating the affected petitioners and further prohibited from coercing, forcing the affected petitioners to take a salary cut.” The statement reads in part

The court further advised the media house to instead give mandatory leave should they be unable to cope with the terms due to the current global pandemic.

 “but if the respondent establishes an inability to meet its obligations to pay salaries or wages due to covid -19 situation, the respondent may permit the affected petitioners to take leave of absence without pay for the duration of the covid 19 pandemic and  subject to exhaustion of any pending paid annual leave. Parties are encouraged to enter a mutual agreement about the respective contracts of service in view of any adverse effects flowing from the covid 19 situation with a view of recording a consent in court.” Read the statement

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