Heritage Insurance has suffered a major blow after the court temporarily froze its bank accounts for failing to pay over Sh100 million to its employees whose services were unfairly terminated.

Justice Hellen Wasilwa of the Employment and Labour Relations Court granted the orders in an application filed by 24 former employees who claim that the firm has been reluctant to pay them their dues, despite a judgment in their favour.

The order affects Heritage’s bank accounts at Stanbic Bank, NIC bank, CBA Bank and Diamond Trust bank.

“Pending the hearing of this application inter-parties, an order is hereby granted freezing the operation of all bank accounts belonging to Heritage Insurance Ltd and which are held with the said banks,” ruled Justice Wasilwa.

The labour court had last year, found that the services of 24 former top managers of the insurance firm had been unfairly terminated during the implementation of what the company said was a restructuring exercise to improve its business efficiency.

Abrupt and cruel

Heritage Insurance managing director Godfrey Kioi had stated that the directors and senior managers at supervisor level were affected. However, the affected employees had termed the sacking as, “abrupt and cruel.”

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