Question

A bank embarked on a recruitment campaign of university graduates, and Francis, a recent graduate applied for a position. Francis was interviewed by the bank, and following the interview, the bank offered Francis a position by letter which set out a salary, and a starting date. Francis accepted the position by return mail. A few days after Francis began work for the bank, he was called into the Manager’s office and presented with an employment contract that contained a confidentiality clause, and a proviso that either party could terminate the contract on three month’s notice, or in the case of the bank, payment of three month’s salary and accrued benefits. Francis signed the agreement. Francis worked for the bank for almost fifteen years, moving from the position of trainee through various promotions to the position of Branch Manager of a small branch of the bank. Some month’s later, he had a disagreement with the Regional office of the bank over the quality of certain loans he had made to local businesses, and his employment was terminated. On termination, he was paid three month’s salary and his accrued benefits. A week later, Francis instituted legal proceedings against the bank for wrongful dismissal. What might be the basis of the claim for wrongful dismissal? What likely response would the bank make to his claim?

Answer 1

Francis legal proceedings against the bank is wrong. He has been terminated because he has not agreed with regional office of the bank on the quality of certain loans which he has made to local businesses. He has followed the guidelines for qualifying loans and therefore he has been terminated from the job. However, the bank as agreed in the contract has paid him three months’ salary and benefits. He can put forward some claims for wrong dismissal like he has given loan to right people, loan money is recovering from them, etc. but bank can clearly state that any employee who is not following the rules and regulations is subjected to the same punishment. Whether or not the loan is being recovering or given to businessman with strong goodwill, if the process is not followed correctly no employee will be entertained for the disagreement.