Jumamosi, 16 Aprili 2022

NMB SUFFERS BLOWS OVER ADVENTIST EMPLOYEE TERMINAL PAYMENTS

 By Faustine Kapama-Judiciary

THE Court of Appeal has dismissed the appeal lodged by National Microfinance Bank LTD (NMB), opposing 36 months’ salary compensation awarded to former Bank’s Teller, Ms Neema Akeyo, whose employment was terminated for absenteeism having attended religious Saturday prayers.

Justices Stella Mugasha, Barke Sehel and Lucia Kairo ruled against the NMB Bank, the appellant, after upholding the findings of the Commission for Mediation and Arbitration (CMA) and that of the High Court, which decided in favour of Ms Akeyo, the respondent.

They were satisfied that the termination of the respondent from employment was substantively unfair and, in the circumstances, both the CMA and the High Court were justified to award 36 month's salary as compensation.  

“In the absence of sound reasons to vary the decision of the High Court, we find the appeal not merited in its entirety and it is hereby dismissed,” the justices declared in their judgment delivered recently at Arusha Court’s Registry.

During hearing of the appeal, the counsel for the appellant had faulted the High Court for, among others, holding that the termination was procedurally and substantially unfair.

The justices noted that the High Court Judge found that the termination was based on invalid reasons which rendered the termination substantively unfair, the determination of procedural compliance was inconsequential and could not add any value in the wake of lacking valid reasons for the termination.

There was another criticism that the Judge erred in law and fact by holding that the complaint was terminated on ground of discrimination based on region, which was not framed as an issue neither at the CMA nor at the High Court and which was not in the jurisdiction of the court to determine.

The justices began with what was decided by the High Court and aspects considered, notably, the right of worship as enshrined under Article 1 of Discrimination (Employment and Occupation) Convention, 1958, Article 19(1) of Constitution and sections 7(4) (a) of Employment and Labour Relations Act (ELRA).

Another aspect related to the appellant's act to allow some of the employees including the Branch Manager to exercise their freedom of worship and at the same time deter the respondent from enjoying such rights.

The justices found that the High Court Judge applied the law on the factual account on how the respondent was treated differently from other staff in exercising the right of worship during working hours.

“In the circumstances, as correctly found by the Judge of the High Court, the act of the appellant as an employer contravened the provisions of section 7 (4) of the ELRA which abhors discrimination at place of work,” they said.

The justices equally found as wanting the appellant's complaint that the issue surrounding termination based on discrimination cropped up at the High Court.

They noted before the CMA that apart from the respondent denying the charges on absenteeism her response was to the effect that, on Saturdays she reported at work place and at ten o'clock, she sought and obtained permission from the manager to attend religious services.

“She as well, testified that the Muslims were given such permission on Friday's, when asked on the issue of discrimination she replied in the affirmative that while others, like the Muslims were given permission to go for prayers, on (her) part going for prayers was considered as a problem,” the justices noted.

They, thus, agreed with the respondent’s counsel that, apart from the High Court being seized with jurisdiction to exercise revision powers, the appellant was not denied the right to be heard on the issue of termination based on discrimination and the appellant's complaint was untrue and afterthought.

The respondent was employed by the appellant as a Bank teller at its Branch in Karatu. The employment commenced on October 27, 2010 up to June 5, 2015 when the appellant terminated the respondent on accusations of absenteeism and insubordination.

This made the respondent to refer the matter to the CMA claiming that the termination was procedurally and substantively unfair and prayed to be paid compensation for breach of employment agreement.

The appellant denied the allegations, contending that termination was for valid reasons and requisite procedures were complied with.

It was the appellant's contention that, the termination was prompted by the respondent's failure to attend at work on Saturdays which was in contravention with the local employment agreement and the Human Resource Policy and NMB PLC Code of conduct.

After a full trial, the arbitrator was satisfied that the respondent was unfairly terminated both substantively and procedurally in the wake of absence of proof from the appellant that the respondent was not attending work on Saturdays.

Further to that, it was also found that after the respondent was found guilty, she was not given opportunity to give mitigating factors. As a result of the said unfair termination, the CMA awarded the respondent 36 month's salary as compensation.

Undaunted, the appellant lodged an application to the High Court seeking to have the CMA decision revised. However, the application was dismissed and instead, the CMA's award was confirmed on ground that the termination was substantively and procedurally unfair.

Justice Stella Mugasha.
Justice Barke Sehel.
Justice Lucia Kairo.
Court Hammer.
 Court of Appeal Building. 

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