Standard Chartered Bank (StanChart) has taken its fight against a court order to pay its former employees a combined Sh1.5 billion in pension awards to the Supreme Court. The bank is challenging a Court of Appeal ruling that upheld a decision by the Employment and Labour Relations Court, which ordered StanChart to pay the pension benefits to over 200 former staff members.
The former employees had sued the bank, arguing that they were entitled to a higher pension payout based on their final salaries and years of service. The Employment and Labour Relations Court agreed with them, ruling that the bank had underpaid their pension benefits. The Court of Appeal later upheld this decision, prompting StanChart to appeal to the Supreme Court.
The bank argues that the Court of Appeal erred in its judgment, claiming that the pension scheme in question was a discretionary trust that allowed the bank to make decisions on pension payouts. StanChart contends that it had followed the rules of the pension scheme and that the former employees were not entitled to the higher payout.
The former employees, on the other hand, argue that the bank had breached its contractual obligations to them by underpaying their pension benefits. They claim that the bank had promised to pay them a certain amount based on their final salaries and years of service, but had failed to do so.
The Supreme Court’s decision in this case is expected to have significant implications for employers and employees in Kenya. If the court upholds the lower courts’ decisions, it could set a precedent for employers to pay higher pension benefits to their former employees. On the other hand, if the court rules in favor of StanChart, it could limit the ability of employees to claim higher pension benefits.
The case also highlights the importance of clear and transparent pension schemes. The dispute between StanChart and its former employees arose from a disagreement over the rules of the pension scheme and how they should be interpreted. The Supreme Court’s decision is expected to provide clarity on this issue and help to prevent similar disputes in the future.
Overall, the StanChart pension award case is a significant employment law dispute that has far-reaching implications for employers and employees in Kenya. The Supreme Court’s decision will be closely watched by both parties, as well as by other employers and employees who may be affected by the outcome.