Co-Operative Bank of Kenya Ordered To Pay Former Employee Sh3,585,700 In Compensation For Wrongful Dismissal.

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The Employment and Labour Relations Court has awarded a total of Sh3,585,700 in compensation for the unfair termination of Edward Bengi, calculated based on ten years of salary, and Sh358,570 in notice pay. The court also ordered the bank to cover the Plaintiff’s legal costs.

Bengi

Bengi, a telecommunications engineer, was employed by the bank from 2001 until his dismissal in 2014.

During his tenure, he rose through the ranks, ultimately reaching a senior managerial position. Bengi consistently earned excellent performance reviews, with multiple bonuses awarded for his contributions to the bank.

By 2014, he was a key player in the bank’s Information Technology and telecommunications infrastructure, overseeing large-scale projects aimed at modernizing its systems.

However, in May 2014, Bengi’s career took a sharp turn when he was suspended by the bank following allegations of negligence.

These allegations stemmed from an audit that claimed Bengi had caused the bank a loss of 15, 358,040 on various dates from October 2012 to February 2014 due to his oversight of the procurement process for voice cabling of 19 branches and an IP telephony project.

The bank suspended Bengi, accusing him of failing to properly supervise the ICT infrastructure projects between 2012 and 2014.

Although the bank issued a show-cause letter to Bengi, the court found that the allegations were vague, with little evidence provided to support the claims.

The court heard that Bengi requested to see the relevant documents to respond to the accusations, but his requests were ignored. He was also barred from entering the bank’s premises, which further hindered his ability to defend himself.

Despite these obstacles, Bengi responded to the show-cause notice on June 5, 2014, denying any wrongdoing. He argued that he had not been involved in the procurement decisions or the management of the property and supplies department, where the alleged negligence occurred.

However, the bank did not take his responses into consideration and proceeded with his summary dismissal on August 22, 2014.

Following his dismissal, Bengi filed an appeal, but the bank failed to address it, further breaching its own disciplinary policies.

With his efforts to resolve the matter internally exhausted, Bengi filed a lawsuit against Co-Operative Bank for wrongful dismissal, seeking compensation for the unlawful termination.

In her ruling, Lady Justice Monica Mbaru found that the bank had violated Bengi’s rights under the Employment Act, 2007.

The judge noted that while an employer may have genuine concerns about an employee’s conduct, the dismissal must be conducted in a fair and transparent manner.

The court concluded that Bengi had not been given a proper opportunity to respond to the accusations, as the bank had failed to provide him with the necessary evidence or documents for his defense.

Additionally, the court found that Bengi was not informed of the specific charges against him, which made it impossible for him to adequately address the allegations.

The court also emphasized that Bengi had a strong work record with the bank, having received multiple performance bonuses and positive reviews throughout his career.

This fact, the judge noted, made the sudden dismissal highly questionable and indicative of a lack of procedural fairness.

The court’s ruling emphasizes the need for employers to follow due process and maintain fairness when terminating employees, particularly in cases of alleged misconduct.

Conclusion

This ruling is a wake up to Co-Op bank employees who might be wrongfully dismissed to seek justice as the pace has been set.

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