Court dismisses case of security firms whose license were cancelled by PSRA

Court dismisses case of security firms whose license were cancelled by PSRA

The Employment and Labour Relations Court has today dismissed the case filed by the companies whose license were cancelled by the Private Security Regulatory Authority (PSRA) in Legal Notice No. PSRA/001/2024. The Court ruled that the cancellation of licenses, even on the grounds of non-compliance with minimum wage regulation, is not a Labour issue but rather a legal and a regulatory discourse between security firms and the regulator. 

Below is part of the court's findings;

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.

Against this background, it is evident that the instant suit does not stem from an employer-employee relationship or involves an issue involving trade union, an employer's organisation, a federation, the Registrar of Trade Unions and/or the Cabinet Secretary or any office established for such purpose. The issue before this court relates to dispute between security firms and the relevant governing bodies and not one in respect to employment and labour relations.

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.

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