Ex-Greenland staff sue Bank of Uganda

Four hundred and eight former employees of Greenland Bank have sued the Bank of Uganda and their former employer for non-payment of gratuity, pension and terminal benefits.
Four hundred and eight former employees of Greenland Bank have sued the Bank of Uganda (BOU) and their former employer for non-payment of gratuity, pension and terminal benefits.

Through Matovu and Kimanje Advocates, the ex-employees say they are entitled to their terminal benefits under the conditions of service of their former employing bank. They also want damages for breach of contract. BOU on 1 April 1999 seized and took control of the affairs of Greenland Bank, claiming it was insolvent.

However, when the case came up for hearing yesterday, Mr Timothy Masembe Kanyerezi of Mugerwa and Masembe Advocates, the lawyers for the BOU and Greenland, asked the High Court to dismiss the case with costs, saying the central bank should not have been sued in its capacity, but as a receiver.

He also said BOU had paid the employees their dues. However, Mr Peter Kimanje who appears for the former employees, asked the judge to uphold the suit against Bank of Uganda, saying its seizure of Greenland meant that it took over its obligations as well.

He said by the time BOU took over the management of Greenland Bank, the commercial bank had calculated the terminal benefits of all the ex-employees but BOU only paid them one month's salary in lieu of notice of the termination of their services.

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