Games Stores has reached an agreement with its employees on store closure as well as employee benefits.

The Company, which is run by the South-African retailer Massmart, and the Kenya Union of Commercial Food and Allied Workers have agreed on closure rationale as well as terminal benefits for workers.

Games Stores initiated a redundancy process in accordance with section 40 of the Employment Act, 2007 by notifying employees on October 4 2022.

 In a letter signed by representatives from the Workers Union and Game Stores made the decision to close all Kenyan units arose from tough economic challenges.

“The parties have reached an agreement regarding termination of employment as well as the terminal benefits payable to all of the associates who are members of the Union as a result of the redundancy,” the letter read.

Some of the approved areas include store closure, termination date and ongoing liquidation process as well as terminal benefits effective December 31 2022.

 Further, associates will also receive their December salaries.

“The parties agree that from the date of signature of this agreement to the Closure Date, the associates will continue to use their best endeavours to assist the Company in successfully reducing stock in accordance with the ongoing stock reduction process.” read part of the letter.

On terminal benefits, associates who have worked with the company for less than five years will receive a one-month pay notice while those with more than two months.

“The Company will pay associates a one-off payment of Sh35,000 (thirty-five thousand Kenyan Shillings) as a relocation allowance,” the company added.

In October, Massmart that runs Games Stores announced plans to close its Kenyan stores on or about December 25, rendering hundreds jobless.

The Johannesburg Stock Exchange-listed company informed all its associates and employees of impending closure through their union.