The Court of Appeal has ruled that Standard Chartered Bank (Stanchart) must pay UGX 573 million to former employee Grace Tibihikira Makoko, who was unlawfully dismissed in 2015.
Makoko, who served as the bank’s Regional Head of Financial Markets and Wholesale Banking for East Africa, sued the bank for wrongful termination.
The court reduced the initial award of UGX 1 billion in damages and $108,750 in unvested shares, citing that it was excessive.
Instead, the court awarded UGX 500 million in general damages and $20,000 for unvested shares.
The interest rates on the awards were also reduced from 15% to 10% for general damages and 15% to 8% for the unvested shares.
Court’s Rationale
The judges considered Makoko’s duration of service, status in the banking industry, and disruption of her employment prospects in determining the award.
They noted that the initial award would have put her in a better position than if she had not been unlawfully terminated.
Background
Makoko started working at Stanchart in 1995 as a clerk and rose to the position of Regional Head by 2011.
She was dismissed in 2015 without a hearing, which she described as harsh and unjust, causing damage to her career and personal well-being.
The Industrial Court initially ruled in her favor in 2020, but the Court of Appeal has since modified the award.
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