The Court of Appeal has ordered Standard Chartered Bank to pay Shs 573 million to Grace Tibihikira Makoko for her unlawful dismissal from employment.
Between 1995 and 2015, Standard Chartered Bank employed Makoko in various capacities in Uganda and Kenya. From 2011 to 2015, she served on international assignments as the Bank’s Regional Head of Financial Markets and Wholesale Banking for East Africa, based in Nairobi.
According to Makoko, she performed excellently in 2014, earning a good performance rating based on the Bank’s internal evaluation scale. However, in 2015, she was terminated without a hearing, before a formal assessment and the implementation of a performance improvement plan she had been required to undertake.
Makoko challenged her dismissal in court, arguing that it was harsh, unacceptable, high-handed, and in breach of the law as well as the Bank’s Internal Human Resource Manual. She remains unemployed to date, and contended that the manner of her termination adversely affected her employability and caused her significant suffering.
The Industrial Court ruled in her favor, finding that her dismissal was unlawful. It awarded her Shs 1 billion in general damages, payment of US$ 108,750 (approximately Shs 401 million) in unvested shares, and interest at a rate of 15% per annum on the awarded sums.
Standard Chartered Bank appealed the decision, arguing that the Industrial Court erred in law by awarding excessive general damages without a proper legal basis. The Bank also contested the award of share options, claiming the evidence was misinterpreted.
The panel of appellate judges, led by Justice Muzamiru Mutangula Kibeedi, Christopher Gashirabake and John Osca Kihika, partly agreed with the Bank.
“We have considered Makoko’s duration of service with the Bank, her status in the banking industry, and the disruption to her employment prospects. We therefore reduce the award of general damages from Shs 1 billion to Shs 500 million,” the panel ruled.
The Court further reviewed the evidence regarding the unvested shares and concluded that their value was only US$ 20,000. Consequently, it set aside the earlier award of US$ 108,750 and substituted it with an award of US$ 20,000 (approximately Shs 73.3 million).
In total, the Court ordered Standard Chartered Bank to pay Grace Tibihikira Makoko Shs 573 million.
