Mediheal Group of Hospitals has been ordered to pay Sh422 million to 63 Indian expatriates for unlawfully terminating their contracts after failing to pay their salaries for several months. In a ruling delivered by the Employment and Labour Relations Court, Justice Anna Ngibuini Mwaure said the expatriates had proven their case and that Mediheal did not oppose the claims.

Justice Mwaure found that the hospital withheld salaries from the medical professionals, who worked across Mediheal’s facilities in Kenya and Rwanda, forcing them to resign under pressure. The court ruled that this amounted to constructive dismissal and an unfair labour practice.

"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.

The expatriates filed the case in February 2024 against 12 Mediheal health facilities and their directors, Swarup Mishra and Pallavi Mishra, demanding unpaid salaries of 186 million Indian rupees (Sh278.8 million). They also sought additional compensation for general damages and breach of contract.

The court heard that the employees, who worked in departments such as diagnostics, dialysis, and fertility centres, made repeated efforts to recover their dues. Despite several written promises, the payments were never made. The expatriates also tried to settle the matter through arbitration as outlined in their contracts, but Mediheal failed to respond.

"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," the court noted.

Their representative, Girija Ballav Mahapatra, presented appointment letters and other documents during the hearing to support their claims. The court awarded them salary arrears of Sh278.8 million, three months’ notice pay worth Sh50.3 million, and general damages amounting to Sh93.8 million.

The ruling, dated June 12, 2025, pointed out that Mediheal had acknowledged delays in payment. In a letter dated October 27, 2024, Mediheal Chairman Dr Mishra thanked the employees for their patience while waiting for their salaries.