The Court of Appeal dismissed its challenge against a ruling requiring the bank to compensate retrenched workers for their pension claims.
The decision upholds an earlier ruling by the Retirement Benefits Appeal Tribunal, marking a major victory for former employees who had been fighting for their rightful benefits.
The case, which has been ongoing for several years, stemmed from a dispute between StanChart and a group of retrenched workers who alleged that the bank had failed to comply with pension obligations.
Initially, the Retirement Benefits Authority (RBA) dismissed their claims, prompting the employees to escalate the matter to the Tribunal.
The Tribunal ruled in favour of the workers, directing that their pension benefits be correctly computed and paid out.
StanChart subsequently moved to the High Court, seeking to overturn the Tribunal’s decision, but its petition was dismissed, leading to the appeal.
In its appeal, Stanchart argued that the Tribunal had acted without jurisdiction by failing to take oral evidence during its proceedings.
The bank further contended that the Tribunal’s order for the computation of pension benefits exceeded its authority.
However, the Court of Appeal found that the Tribunal was well within its legal mandate to rely on written submissions as part of its procedural flexibility.
Additionally, the Court of Appeal ruled that the High Court’s decision was sound, stating that the appeal was limited to procedural matters rather than a merit review of the Tribunal’s determination.
The court also rejected claims that the Tribunal’s directives had violated principles of fair administrative action, emphasizing that Stanchart had consented to the Tribunal’s procedural approach and had actively participated in the proceedings.
A key aspect of the ruling was the emphasis on trustee duties in pension fund management.
The Court of Appeal affirmed that trustees are required to administer pension funds in strict compliance with the law and the trust deed governing the benefits.
The Tribunal’s decision was therefore upheld, compelling the bank to compute and disburse the retrenched workers’ pensions in accordance with its directives.
The court firmly stated, “A party who lost in appeal cannot then turn around and disown the process that they subscribed to and even participated in by way of filing documents, submissions, and participated in highlighting.”
This underscored the judges’ stance that Stanchart had already agreed to the Tribunal’s procedures and could not later contest them.
Furthermore, the ruling highlighted that “the proceedings before the Tribunal, taken as a whole, did meet the threshold for procedural fairness,” reinforcing the decision that the retrenched workers were entitled to their pension payments under the law.
With the dismissal of Stanchart’s appeal, the ruling paves the way for the affected employees to receive billions in compensation.
The exact amount to be paid remains to be determined following the pension computations mandated by the Tribunal. Additional reporting by Capital FM
