Court Slams Keystone Bank with N20.5 Million Penalty for Unlawful Dismissal
In a landmark ruling, the National Industrial Court of Nigeria (NICN) in Kaduna has ordered Keystone Bank Limited to pay N20.5 million in damages to Bamgboje Olasunkanmi, a former employee, whose dismissal was ruled as wrongful and unlawful.
Justice Simisola Oluyinka Adeniyi, who presided over the case, declared that Olasunkanmi’s dismissal, which occurred on August 3, 2016, was unconstitutional, null, and void. The court further ruled that the dismissal letter issued to Olasunkanmi be invalidated, marking a significant victory for the former Control Officer at Keystone Bank’s Kaduna South branch.
The case, filed under reference NICN/KD/28/2021, resulted in the court ordering Keystone Bank to unfreeze Olasunkanmi’s salary account (Account No. 1160047972) and pay him the outstanding balance. Additionally, the bank was instructed to pay N20 million in general damages, as well as N500,000 to cover the claimant’s legal costs.
In a further blow to the bank, Justice Adeniyi ruled that a 10% interest rate be applied to the judgment sum, effective from September 11, 2024, until the full debt is paid.
Olasunkanmi, who was represented by A. A. Manta, had contested his dismissal, asserting that the bank had failed to follow due process. He argued that his dismissal breached principles of natural justice, claiming that the bank had acted as judge and jury, wrongly accusing him of a criminal offense without a fair trial. He sought reinstatement, the unfreezing of his account, payment of withheld salaries, and compensation for defamation, legal costs, and an apology from the bank, to be published in national newspapers and reported to the Central Bank of Nigeria.
In its defence, Keystone Bank, represented by Godwin Udondiah and N. N. Bin, argued that Olasunkanmi had committed gross misconduct in his role as Resident Internal Control Officer. The bank alleged that he authorised a N250,000 withdrawal without proper documentation and approved a debit on a customer’s account without following due procedure, leading to his dismissal.
Despite the bank’s arguments, Justice Adeniyi ruled that Keystone Bank had failed to justify the dismissal adequately. She noted that the evidence presented by Olasunkanmi was compelling, and the dismissal did not comply with the bank’s internal procedures or legal requirements. The judge concluded that while some of Olasunkanmi’s claims were only partially valid, the unlawful nature of his dismissal entitled him to substantial damages.
This ruling sends a strong message to corporate institutions about the need for strict adherence to employment laws and due process in disciplinary actions, particularly where the rights and reputations of employees are at stake.
