Saturday, April 19, 2025

Court Orders Standard Chartered Bank (Gambia) to Deposit D250M in Legal Dispute Over Divestment and Staff Compensation

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By: The Fatu Network Editorial

Over 80 employees of Standard Chartered Bank Gambia Limited (SCB) have taken legal action against the bank in a bid to protect their employment rights and secure financial compensation in light of the bank’s planned sale or transfer of its commercial banking operations in The Gambia. The lawsuit, filed on March 10, 2025, was brought by Ebrima Jatta and Musu Badjie on behalf of themselves and their colleagues. The plaintiffs are seeking a declaration that their rights to continue employment and the protection of their wages are threatened. They also argue that the bank’s failure to provide relevant written information regarding the divestment constitutes a breach of their employment contracts, which they believe violates Section 141(2)(a) and (b) of the Labour Act, 2023.

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The employees are requesting various forms of compensation, including end-of-service and/or severance pay, redundancy pay, and the payment of Provident Fund proceeds due at the effective date of termination. They are also seeking compensation for breach of contract, which would include interest, legal and administrative costs, as well as damages for anticipated and actual losses suffered.

In addition to their claims, the plaintiffs sought an ex-parte interim injunction, asking the court to compel SCB to maintain the status quo until their main suit is heard. The court granted this injunction, preserving the current situation while the legal proceedings continue.

On April 7, 2025, the plaintiffs filed a motion under Order 12 Rule 4 of the High Court Rules of The Gambia, which sought to restrain SCB from selling, transferring, or otherwise disposing of its commercial banking operations in The Gambia to Access Bank Gambia Limited or any other entity until the main suit is resolved. Alternatively, the motion proposed that the divestment proceed only if the bank paid a specific security deposit.

The motion was heard by the High Court on April 16, 2025, with Counsel Ebrahim Sanneh representing the plaintiffs and Counsel Ida Drameh representing SCB. The court ruled that while it could not prevent the sale of the bank, it granted the alternative relief that SCB must deposit D250 million into an interest-bearing account controlled by the Sheriff of The Gambia. This deposit is to be used for employee compensation or awards should SCB proceed with the divestment before the conclusion of the main case.

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The court acknowledged that the sale process was at an advanced stage and may have implications for the public interest, but determined that the employees had met the necessary legal conditions for an injunction. This ruling allows SCB to proceed with the divestment but with a financial safeguard in place for the employees.

The legal dispute between SCB and its employees is ongoing, with the plaintiffs continuing to seek compensation for breach of contract and other claims related to the divestment. The court will consider further claims as the case progresses, determining whether SCB’s actions are in compliance with labor laws and whether the employees’ rights are adequately protected during the transition.

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