Business / Companies
Obert Mpofu's ZABG ordered to re-instate former manager
06 Nov 2013 at 02:25hrs | Views
The Supreme Court has ordered the Zimbabwe Allied Banking Group (ZABG) now trading as Allied Bank Zimbabwe to reinstate its former Head of Compliance section Stella Nhari who was unlawfully dismissed by the financial institution in 2008.
As the Head of Compliance, Nhari reported directly to the chief executive officer before her dismissal in 2008.
In November 2007 before her dismissal, Nhari was appointed general manager and she was to report to the head of corporate and legal services division.
However, this was not to affect her grade, salary or benefits.
Nhari's fallout with the bank's bosses came about when a former ZABG chief executive officer advised senior management of the change in the reporting structure, a move which did not go down well with Nhari.
Nhari, however, continued to execute her duties and went ahead using the old reporting structure.
Her alleged continued insubordination resulted in her suspension and subsequent dismissal leading to a protracted court battle.
The Labour Court ordered her re-instatement, but the bank challenged the court.
However, the Supreme Court judge of appeal Justice Paddington Garwe said: "It is clear that a suspension must be based on a belief that misconduct as defined has been committed. Employer must have good cause for such belief (and) only then may the employer consider suspending the employee."
He added that where the suspension is set aside and re-instatement ordered, any verdict or penalty imposed pursuant to any allegation made as part of the reason for suspension must fall away.
In concurrence with Justice Garwe's judgment was Chief Justice Godfrey Chidyausiku and former judge of appeal Justice Yunus Omerjee.
As the Head of Compliance, Nhari reported directly to the chief executive officer before her dismissal in 2008.
In November 2007 before her dismissal, Nhari was appointed general manager and she was to report to the head of corporate and legal services division.
However, this was not to affect her grade, salary or benefits.
Nhari's fallout with the bank's bosses came about when a former ZABG chief executive officer advised senior management of the change in the reporting structure, a move which did not go down well with Nhari.
Nhari, however, continued to execute her duties and went ahead using the old reporting structure.
The Labour Court ordered her re-instatement, but the bank challenged the court.
However, the Supreme Court judge of appeal Justice Paddington Garwe said: "It is clear that a suspension must be based on a belief that misconduct as defined has been committed. Employer must have good cause for such belief (and) only then may the employer consider suspending the employee."
He added that where the suspension is set aside and re-instatement ordered, any verdict or penalty imposed pursuant to any allegation made as part of the reason for suspension must fall away.
In concurrence with Justice Garwe's judgment was Chief Justice Godfrey Chidyausiku and former judge of appeal Justice Yunus Omerjee.
Source - zbc
