National Bank wins in Sh1 bn case against former employees
8 months ago, 7 Dec 21:26
The Court of Appeal has overturned the Labour Relations Court ruling which awarded Sh1 billion to 200 former National Bank of Kenya employees retrenched in 2014. Judges of the Employment and Labour Relations Court said the respondents accepted the terms offered in the circular and acceptance letters issued by the bank. Appellate judges Alnashir Visram, Wanjiru Karanja and Martha Koome added that the respondents could reject the terms and not take advantage of the Voluntary Early Retirement (VER) scheme. The scheme was introduced in 2014 for employees aged 50 and above as part of a restructuring process geared towards achieving growth targets as spelt out in the bank's strategic plan 2013-2017. "In our view, there was no evidence of undue influence or coercion which diminished the respondents' capacity to voluntarily accept the terms in question. We find that the appeal has merit and hereby set aside the judgment of the trial court dated February 22, 2017 and substitute the same with an order dismissing the respondents suit with cost to appellant,'' the judgment reads in part. The former employees moved to court in 2014 seeking damages for unfair retirement and discrimination under the VER scheme. In February, Justice Monica Mbaru of the Labour court had ordered the lender to pay Sh1 billion to the employees stating that were discriminated against and unfairly treated when they were sent on voluntary retirement in 2014.
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