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Home»BANKING AND FINANCE»Keystone Bank Faces Financial Repercussions For Unlawful Employee Termination
BANKING AND FINANCE

Keystone Bank Faces Financial Repercussions For Unlawful Employee Termination

thepublisherngrBy thepublisherngrSeptember 18, 2024No Comments5 Mins Read
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The Kaduna division of the National Industrial Court of Nigeria (NICN) has ordered Keystone Bank Limited to pay a total sum of N20.5 million damages to one of it’s former staff, Bamgboje Olasunkanmi, whose employment with the bank was terminated unjustly and unlawfully.

The court presided over by Justice Simisola Oluyinka Adeniyi, also declared that the dismissal of the claimant, Olasunkanmi by Keystone Bank from August 3, 2016, was wrongful, unconstitutional, illegal, null and void.

The judge, while delivering judgment in the suit marked NICN/KD/28/2021, filed Olasunkanmi against Keystone Bank further made the following declarations and orders: “It is hereby declared that the letter of dismissal dated August 3, 2016 is invalid and it is hereby set aside.

“The defendant (Keystone Bank) is hereby ordered to unfreeze the Claimant’s salary Account Number 1160047972, and to pay the claimant the sum in the said account.

“The defendant is hereby further ordered to pay to the Claimant sum of N20 million, as general damages. And cost of N500, 000.00, is awarded in favour of the claimant.”

Justice Adeniyi further ordered Keystone Bank to pay 10 percent interest is awarded on the judgement sum from the date of the judgment, September 11, 2024, till final liquidation

The claimant, Bamgboje Olasunkanmi, a former Control Officer with the bank through his lawyer, A. A. Manta, had approached the court challenged his unlawful dismissal without due process by the bank.

Olasunkanmi who last worked at the Kaduna South branch of the bank had asked the court for the followings: “a declaration that the dismissal of the claimant on the 3rd August, 2016 by the Defendant is invalid, illegal, unlawful, unconstitutional, null and void and of no effect as the same was ultra wires the powers of the defendant, and in breach of the rules of natural justice as the Defendant assumed the role and power of a Court to find the Claimant guilty of a criminal offence that he was never tried and/or convicted for by a Court of law nor was the action of the Disciplinary Committee before whom he was made to appear in Lagos in line with his contract of employment or in accordance with the Defendant’s Sanction Grid aforementioned.


“A declaration that he remains an employee of the Defendant until he is validly subsequently disengaged.

“A declaration that the “blocking” or “freezing” of his salary account is unlawful, illegal, unconstitutional, null and void.

“An order of the court directing the defendant to withdraw the purported letter of dismissal dated 3rd August, 2016 to the Claimant.

“An order of the court reinstating him into the service of the defendant and directing the payment of his full salaries, entitlements, allowances, rights, emoluments and privileges from January 2016 till date.

“A declaration that he is entitled to an Exit Certificate on the valid determination of his employment with the Defendant subsequently.

“An order of the court directing the defendant to issue him with a letter of apology (to be copied to the Central Bank of Nigeria and published in 3 widely circulating National Dailies) “on his ill-treatment in flagrant abuse of his Constitutional rights”.

“An order of the court for the release (forthwith) of his “blocked/frozen” Account Number – 1160047972 with the defendant.

“An order of the court compelling the defendant to calculate and “release” to him his withheld salaries (from January 2016 when he was suspended to 3rd August, 2016, when he received a mail of the purported letter of his dismissal) being the sum of N1, 724, 386.07 million.

“Damages in the sum of N20, 663, 278.62 million, being the conservative amount the Claimant would have earned as wages and emoluments as at January 2021 had he been allowed to continue with his employment according to his contract of employment with the Defendant and from February 2021, the monthly sum of N478, 737.99 until the determination of this matter.

“The sum of N50 million and N500, 000, 00, for defamation of his character and Legal cost of prosecuting the action respectively. And 10 percent interest on the entire judgment sum awarded by this Court with effect from the date of such judgment until the final liquidation thereof. And the cost of the action.

Defending the suit, Keystone Bank in it’s statement of defence filed and argued by it’s lawyers, Godwin Udondiah and N. N. Bin, argued that the claimant, as it’s Resident Internal Control Officer, acted without due authorization and in total disregard of the Bank’s Policy on withdrawal from customer’s account.

The bank claimed that the claimant collected the sum of N250,000.00, from the Bank’s Teller without ticket and also authorized the debiting of a customer’s account without proper instrument and thereby abused his office.

Keystone Bank also contends that the Claimant is not entitled to his claims and maintained that, based on its sanctions grid for misconduct, he was given opportunity to be heard and that the dismissal of his appointment was properly conducted.

Delivering judgment in the suit, Justice Olaniyi after reading through all the processes filed by the parties and legal authorites cited held that: “he focus of the Court in the determination of the issue at hand is therefore, on the above stated reasons that amounted to gross misconduct and for the dismissal of the Claimant……..

“…Based on the above analysis and the totality of the unassailable evidence adduced by the claimant, it is my finding that the defendant has not justified the reason for the claimant’s dismissal for misconduct. This is fatal to the case of the defendant. In the circumstances therefore, the claimant’s dismissal is wrongful. And I so hold.

“On the whole, I resolve the sole issue as set out against the Defendant and hold that the Claimant has established that the dismissal of his appointment by the Defendant is wrongful.

“In the overall analysis, the court adjudges the claims of the Claimant as meritorious in part.”

Read full Judgment:   https://nicnadr.gov.ng/

judgement/judgement.

php?id=9188

Keystone bank
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