105 ex-managers win Sh600m in suit against Barclays Bank

A court has given Barclays Bank of Kenya 30 days to pay 105 senior managers it retrenched seven years ago a total of Sh600 million.

The former employees won the case in which they questioned the computation of their final dues.

DISCRIMINATION

Justice Mathew Nduma Nderi, of the Employment and Labour Relations Court, said on Wednesday that the lender discriminated against the workers in the manner in which it computed the amounts.

“This court concurs with lawyer Titus Koceyo that their rights were violated and that they were discriminated against by their employer in the manner it tabulated their exit emoluments,” Justice Nderi said.

He noted that the bank violated Section 40 of Employment Act, 2007 which requires employers to grant sacked workers proper terminal dues.

“In its own discretion, the bank granted the claimants one and a half months’ salary for each completed year of service and also used its discretion to cap the number of completed years payable to each of the former bankers,” he said.

Mr Koceyo had told the judge that some of the former managers were fraudulently paid for 16 years, which they had not served, and that others who worked 40 years were denied their hard-earned money.

He urged the judge to allow the claim and order the bank to pay the difference it retained at the time the 105 people exited.

"CASUAL TREATMENT"

Justice Nderi said, “It is not in doubt that all the employees who worked more than 16 years, some even up to 40 years, were deprived of large amounts which they were lawfully entitled to by fact of their long service.”

He said the complainants gave Barclays many years but were “treated casually, in total disregard of the service, blood and sweat they had given their employer”.

"It is apparent that the well-earned entitlement was curtailed to supplement those who had offered less service.”

The judge further pointed out that the bank treated the three categories of employees differently.

The categories were of those who had worked less than 16 years, those who had worked for 16 years and those who had worked more than 16 years.

INTEREST

All the retrenchees were uniformly paid terminal dues.

The judge said those who worked more than 16 years were discriminated against.

“Accordingly, the 105 claimants succeed in their demand and each of them is awarded as prayed,” Justice Nderi said, adding they should be paid dues computed from January 31, 2011, when they were retrenched.

The amounts will be paid with interest at a court rate of 12 per cent from the time of exit.

The judge dismissed the complainants' prayer for leave allowances. The 105 were seeking special damages of Sh301,855,477.

The judge also ordered the bank to pay costs of the suit.