The National Industrial Court sitting in Lagos has ordered United Bank for Africa (UBA) to pay a former employee, Lawal, his outstanding salaries, gratuities, pension and other employment benefits after declaring his dismissal unlawful.
Justice Rabi Gwandu of the Lagos Judicial Division held that UBA failed to prove that it complied with its disciplinary procedures or afforded Lawal a fair hearing before terminating his employment, rendering the dismissal illegal, null and void.
The court found that the bank breached its own disciplinary guidelines in suspending and dismissing Lawal and failed to justify the action in line with his contract of employment and the principles of natural justice.
Lawal had approached the court, alleging that UBA violated its Group Human Resources Disciplinary Process and Sanctions Policy by dismissing him without following the prescribed disciplinary procedure.
He told the court that his dismissal arose from allegations concerning the disappearance of funds from a customer’s account. According to him, although a police investigation cleared him of wrongdoing, the bank ignored the report and proceeded with his suspension and dismissal.
UBA, however, argued that it received a complaint from a customer over missing funds and suspended Lawal while conducting an internal investigation.
The bank maintained that the investigation revealed grounds for disciplinary action, which led to his dismissal.
The bank further contended that Lawal was informed of the allegations against him, appeared before its disciplinary panel, exercised his right of appeal and was given a fair hearing before his employment was terminate, urging the court to dismiss the suit.
In objection, counsel to Lawal, Adewale Bolaji, argued that an employer cannot dismiss an employee based on false, unsubstantiated or unproven allegations.
He submitted that where a dismissal is based on allegations of criminal conduct, such allegations must first be established before they can validly justify termination of employment.
Bolaji further argued that the police investigation exonerated his client and identified another individual in connection with the alleged offence.
He maintained that UBA disregarded the police report and failed to comply with its own disciplinary policy before dismissing Lawal.
In its judgment on Tuesday, the court held that UBA failed to establish that Lawal was given a fair hearing before his dismissal and also failed to prove that it followed its internal procedures governing suspension and termination.
Justice Gwandu ordered the bank to calculate and pay Lawal all entitlements he would have received if his employment had been lawfully terminated.
The court directed UBA to pay his salaries from November 2014 to March 2015, salaries from April 2015 until the date of judgment at the applicable monthly rate, as well as his gratuity and pension benefits.
The judge held that where an employee is dismissed over allegations of criminal conduct, the employer must establish the allegation, give the employee an opportunity to respond and show sufficient grounds for the dismissal in accordance with the employment contract and principles of natural justice.
Justice Gwandu also held that UBA failed to justify Lawal’s dismissal after disregarding the police investigation report, which reportedly cleared him of wrongdoing while implicating another person.
The judge added that the bank neither complied with its Human Resources Policy nor satisfied the requirement of fair hearing before terminating Lawal’s employment.
“It is the rule of equity and justice that where a person has been investigated and cleared of an allegation of such magnitude, his name should be cleansed of the stain that accompanies such an allegation…” Justice Gwandu held.