All Mumias Sugar Company employees were on Tuesday sent home permanently.
The miller is said to have engaged a new set of employees on contractual basis.
The move comes after the company was put under receivership by the Kenya Commercial Bank (KCB).
“Any payment to the affected employees shall be dealt with in accordance with the provision of the law.
“Accordingly, the Receiver shall engage the services of any employee on a temporary basis on mutually agreeable terms until the time when the operations resume. Priority will however be given to the past employees while recruiting the staff on temporary basis until the time when the company’s operations are revived
“Priority will be given to the past employees while recruiting the staff on temporary basis until the time when the company’s operations are revived,” a notice seen by Pulselive.co.ke read in part.