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January, 23, 2024, in a landmark decision, the Industrial and Social Security Division of the High Court has ruled in favor of employees of Standard Chartered Bank, allowing them to be made redundant due to the sale of the bank to Access Bank Sierra Leone.
The case, centering on industrial action, redundancy, end-of-service benefits, and Provident Fund, was brought by lead plaintiff Felix Berethe and 50 others.
Hon. Mrs. Justice Jamesina E. L. King J. A delivered the judgment, declaring that redundancy would occur for the plaintiffs in either June 2024 or December 2024. The court emphasized that the Employment Law and Employment Regulations of 2023 have taken precedence, settling compensation for end-of-service benefits and redundancy, rendering negotiations unnecessary.
The judgment outlined specific entitlements for the plaintiffs. If redundancy occurs in June 2024, they will be entitled to end-of-service benefits totaling NLE 30,570,189.44 and redundancy benefits of NLE 33,206,039.44. Should the redundancy happen in December 2024, the entitlements increase to NLE 33,375,537.38 for end-of-service benefits and NLE 43,454,257.47 for redundancy benefits.
Exhibits RJ1 & 2, attached to Ransford Johnson’s affidavit, were adopted as part of the judgment. These exhibits detail the agreed-upon redundancy compensation and end-of-service benefits, excluding provisional scheme calculations.
To facilitate payments, the court ordered that end-of-service benefits, redundancy compensation, and Provident Fund benefits due to the plaintiffs, along with costs, shall be paid from the escrow account held at the defendant’s bank. Provident Fund benefits are to be paid immediately upon the liquidation of the said fund, with final figures subject to agreement by the solicitors of both parties.
The defendant is instructed to provide the governing rules and documents for the Provident Fund to the plaintiffs’ solicitors promptly. A month’s notice prior to redundancy is mandated, during which solicitors from both sides will engage in the disbursement from the specified account in line with the court’s order.
Furthermore, costs to the plaintiff will be assessed by the court on 7th February 2024, allowing for any necessary applications. The judgment concludes with the liberty to apply, providing flexibility for any additional legal actions or requests that may arise in the future.
This ruling sets a significant precedent in employment law, clarifying the rights of employees in the face of corporate transitions and ensuring fair compensation in cases of redundancy.
