National Bank of Kenya has succeeded in reducing the compensation to be paid to a former risk manager who was sacked over a decade ago after turning down a transfer to Maua in Meru, which he considered a demotion.
John Kibiru was summarily dismissed in August 2011 after he refused to move to his new workstation as the branch manager.
The former manager pointed out that his troubles started when he offered a professional opinion on the disposal of treasury bonds, which the management was not happy about.
Employment and Labour Relations Court judge Hellen Wasilwa had awarded him 12 months’ salary as damages for wrongful and unfair termination of Sh3.3 million plus a three months’ salary in lieu of notice of Sh1.6 million.
The bank appealed against the decision saying the court wasn’t justified in giving Mr Kibiru maximum compensation.
Wrongful termination
Justice Sankale ole Kantai of the Court of Appeal agreed and reduced the award of 12 months’ salary to three months.
The judge noted that Kibiru was sacked when he was on sick off and it was wrong for the lender to do so.
“In the end I find that the award of maximum compensation for wrongful termination was uncalled for. I interfere with the trial Judge’s finding in that regard and I award the respondent three months’ salary compensation for wrongful termination,” the judge said.
The former manager had pleaded with the bank that he was undertaking a PhD in banking at the University of Nairobi which would be difficult to defer, his family was in Nairobi and he was a member of the financial services work group of the Institute of Certified Public Accountants of Kenya (ICPAK), which met on a quarterly basis.
He also admitted during the hearing that he was a lecturer in some institutions in the city during his free time, which the management was aware and encouraged it.
