The Employment and Labour Relations Court on Wednesday, February 14, dismissed a case filed by private security companies contesting the Private Security Regulatory Authority's (PSRA) move to raise the minimum monthly wage for security guards.
Nine security companies had moved to court seeking orders to have the government agency's decision to deregister them for protesting the minimum wage increment declared unlawful.
The companies argued before the court that the deregistration threatened to cripple their business operations.
“The petitioners aver that the legal notice has put its clients in panic mode and some have started issuing them with notice of withdrawal of their guards and termination notices and that it runs a risk of losing business and rendering many of its security guards jobless,” the Court document read in part.
The court ruled that the companies had failed to prove that the agency's move was against the law.
Additionally, it was ruled that the increment in the minimum wage was not a labour issue in particular.
As such, the Employment and Labour Relations Court ruled that the decision by PSRA to cancel the licences on the grounds of non-compliance with minimum wage regulation was within the law.
Detailing the way forward, the court stated that the matter was a legal and regulatory discourse between security firms and the regulator.
“The issue before this court relates to a dispute between security firms and the relevant governing bodies and not one in respect to employment and labour relations,” the security companies were told.
“The jurisdiction of this court is limited to disputes relating to employment and labour relations as enshrined under Article 162(2)(a) of the Constitution and this does not reflect in the instant case.”
Speaking after the ruling, the Authority revealed that it was determined and committed to ensuring effective regulation and professional standards are adhered to in the industry.
Additionally, PSRA vowed to ensure that all laws governing the private security industry were adhered to.
While PSRA which is under the Ministry of Interior has directed all security guards to be paid Ksh30,000 per month, Labour Cabinet Secretary Florence Bore has disagreed with the decision.
Bore has further directed that security guards be paid under existing regulations which is Ksh16,959 for guards working in Mombasa, Kisumu and Nakuru.
