Mediheal Hospital ordered to pay Sh422million to 63 Indian expatriates for unlawful termination
Mediheal Group of Hospitals has been ordered by the High Court to pay 63 Indian expatriates a total amount of Sh422 million as compensation for unlawful dismissal.
Employment and Labour Relations Court judge Anna Ngibuini Mwaure ordered that the amount to be compensated will be part of salary arrears and general damages.
The expatriates who were employed by the hospital were awarded the sum after the court found they had proved their claim and Mediheal failed oppose.
Justice Mwaure ruled that the organisation withheld and failed to pay the expatriates their salaries forcing them to resign though involuntarily.
"Failure to pay the employees' salary constantly for several months goes to the root of the contract, and it leaves an employee vulnerable and embarrassed. The court holds that such behaviour would push any employee to resign as he is not getting the fruit of their labour," said the judge.
Mediheal hospital had employed the expatriates as medical professionals working for its various subsidiaries in roles such as diagnostics, dialysis and fertility centres in Kenya and Rwanda.
In a ruling dated June 12, 2025, the court reiterated that Mediheal's failure to pay the expatriates their salaries for several months was an unfair labour practice.
The employees sued the organisation's 12 health facilities, Dr Swarup Mishra and Pallavi Mishra in February 2024, claiming that the employer owed them salary arrears amounting to 186 million Indian rupees (Sh278.8 million), and that attempts to recover the amount had proved futile.
Mediheal is associated with Mishra, who is its founder and former Kesses MP.
They said that the entities had made several written promises to pay, but these had not been honoured.
The expatriates argued in court that they had been forced to resign due to non-payment of salaries and affirmed that they had been constructively terminated.
The court also heard that the expatriates had tried to invoke an arbitration clause in their contract, but Mediheal did not respond, so they decided to file the claim in court.
The expatriates' representative, Girija Ballav Mahapatra, testified in court on their behalf and produced documentary evidence, including the appointment letters.
Justice Mwaure ordered payment of the salary arrears totalling 186 million Indian rupees (Sh278.8 million), together with three months' notice amounting to 33.6 million Indian rupees (Sh50.3 million).
She also awarded them six months equivalent for general damages for unfair termination due to constructive dismissal, being 62.6 million Indian rupees (Sh93.8 million).
"The claimants attempted to propose the appointment of an arbitrator as per their letter of November 27, 2023. It would appear the respondents did not respond as pertains to the appointment of an arbitrator. It is quite evident the claimants were willing to resolve this dispute through alternative dispute resolution mechanisms, but met resistance from the respondent," Justice Mwaure noted.
The court noted that in a letter dated October 27, 2024, Mediheal Chairman Dr Mishra wrote to the expatriates employees thanking them for their patience in waiting for the payments of their salaries.
Employment and Labour Relations Court judge Anna Ngibuini Mwaure ordered that the amount to be compensated will be part of salary arrears and general damages.
The expatriates who were employed by the hospital were awarded the sum after the court found they had proved their claim and Mediheal failed oppose.
Justice Mwaure ruled that the organisation withheld and failed to pay the expatriates their salaries forcing them to resign though involuntarily.
"Failure to pay the employees' salary constantly for several months goes to the root of the contract, and it leaves an employee vulnerable and embarrassed. The court holds that such behaviour would push any employee to resign as he is not getting the fruit of their labour," said the judge.
Mediheal hospital had employed the expatriates as medical professionals working for its various subsidiaries in roles such as diagnostics, dialysis and fertility centres in Kenya and Rwanda.
In a ruling dated June 12, 2025, the court reiterated that Mediheal's failure to pay the expatriates their salaries for several months was an unfair labour practice.
The employees sued the organisation's 12 health facilities, Dr Swarup Mishra and Pallavi Mishra in February 2024, claiming that the employer owed them salary arrears amounting to 186 million Indian rupees (Sh278.8 million), and that attempts to recover the amount had proved futile.
Mediheal is associated with Mishra, who is its founder and former Kesses MP.
They said that the entities had made several written promises to pay, but these had not been honoured.
The expatriates argued in court that they had been forced to resign due to non-payment of salaries and affirmed that they had been constructively terminated.
The court also heard that the expatriates had tried to invoke an arbitration clause in their contract, but Mediheal did not respond, so they decided to file the claim in court.
The expatriates' representative, Girija Ballav Mahapatra, testified in court on their behalf and produced documentary evidence, including the appointment letters.
Justice Mwaure ordered payment of the salary arrears totalling 186 million Indian rupees (Sh278.8 million), together with three months' notice amounting to 33.6 million Indian rupees (Sh50.3 million).
She also awarded them six months equivalent for general damages for unfair termination due to constructive dismissal, being 62.6 million Indian rupees (Sh93.8 million).
"The claimants attempted to propose the appointment of an arbitrator as per their letter of November 27, 2023. It would appear the respondents did not respond as pertains to the appointment of an arbitrator. It is quite evident the claimants were willing to resolve this dispute through alternative dispute resolution mechanisms, but met resistance from the respondent," Justice Mwaure noted.
The court noted that in a letter dated October 27, 2024, Mediheal Chairman Dr Mishra wrote to the expatriates employees thanking them for their patience in waiting for the payments of their salaries.
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