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Court permits former Crane bank employees to sue DFCU

By Sania Babirye

The high court in Kampala has given permission to 10 former crane bank employees to sue DFCU bank on behalf of their 400 colleagues  over wrongfully  dismissal.

The permission has been given by deputy registrar Sarah Langa.

The group which is seeking  6 billions in damages among others includes Managers,tellers and cleaners.

These accuse  DFCU bank of discriminatively firing them in a period of only one month after they took over from Crane bank in January of this year with out a valid and sound reason.

They are seeking compensations for the   mental, reputation and financial damage they continue to suffer as a result of their alleged wrongful termination.

They claim that Crane bank had promised its 700 employees that they will not lose their jobs after the take over.

However when DFCU bank took over  and it laid off some employees in a restructuring exercise.

Through their lawyers of Center for Legal Aid led by Mr Isaac Ssemakadde, the group wants to sue DFCU bank for breaching their alleged employment contract and rights which resulted into many of them losing their jobs.

The aggrieved  former employees are claiming that  DFCU bank contravened the Employment Act by sucking them yet during receivership, their contracts including maintaining their jobs were transferred to DFCU.

These are also seeking compensation after DFCU bank allegedly failed to fulfill any liabilities and obligations of crane bank in relation to their job security as agreed upon.

Crane Bank was the third largest bank in the country by the time Bank of Uganda took it over after its working capital went down below the required minimum  which bank of Uganda  ruled that it poised a risk to the client’s  money.

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