The management of Laico Regency Hotel (formerly Grand Regency Hotel) is on the spot nine-month unpaid leave for its workers, and also failing to remit millions shillings of deductions from employees.
According to the employees, the hotel has not remitted statutory deductions such as taxes, pension, savings and loan repayment in Regency Savings and Credit Cooperative Society for over a year, despite making deductions.
“You are under legal obligation to remit to our client, without fail and within statutory timeframes, all deductions made on emoluments of our clients’ membership,” the employees told the management through their lawyer.
As of December 2020, the hotel owed Regency Saving and Credit Cooperative Society Ksh37.77 million.
The employees were sent on unpaid leave in March when Covid-19 struck the country, destabilizing the hotel industry.
Several 5-star hotels have shut down since the outbreak, including Fairmont The Norfolk and Fairmont Mara Safari Cub, and Radisson Blu.
Laico Regency was formerly owned Kamlesh Pattin before being repossessed by the government to recover proceeds of corruption and then sold to the Libyan government in 2008.