Standard Bank ordered to pay former senior employee R1.7m over unfair firing

Standard Bank has been ordered to pay its former head of compliance in the global markets and market abuse department R1.7m for unfairly dismissing her on allegations that she fostered a toxic culture that led to a skills exodus.

Christine Lawson, who was on a package of just less than R2.3m a year, was shown the door in 2023 after she was found guilty of charges levelled against her at a disciplinary hearing.

The Commission for Conciliation, Mediation and Arbitration (CCMA) found the way Standard Bank conducted the investigations into allegations against Lawson was flawed.

The CCMA also found it troubling that Lawson was dismissed while no grievances had been lodged against her.

The charge sheet used at the disciplinary hearing paints a picture of a manager who made the work environment unbearable for employees who reported to her.

The main charge against her was during a period from 2019 she failed to create an environment in which employees “feel psychologically safe” and “perform optimally and do not engage in conduct which is detrimental or poses the risk to the bank”.

The charge sheet goes on to detail the impact Lawson’s alleged conduct is said to have had on the team. It includes that a number of her team members had been emotionally distressed over how she engaged them.

“A number of your team members (current and recent exits) report that they have/had adopted patterns of behaviour that were/are detrimental to the bank and could pose a risk to the bank,” reads the charge sheet.

Breached duty

“In this regard employees are too afraid to challenge decisions or put forward solutions to problems as this has resulted in them feeling excluded and unsupported by yourself in comparison to the rest of the team members.

“Employees have left your team and there are other further team members wanting to leave the team, as a result of your leadership style and ways of working fostered in the team by you as a leader ... you have breached the duty not to cause psychological and/or emotional harm to employees in that you have fostered a culture of favouritism, fearfulness and mistrust among the team.”

Some of the evidence the bank relied on was the contents of one employee’s resignation letter.

At the arbitration before the CCMA, Standard Bank brought five witnesses, while Lawson brought four.

Her witnesses, who also reported to her, said they did not witness any incidents of harassment meted out by Lawson to her subordinates and that they would have noticed because they worked in an open plan-area.

“As to the allegation that the employee’s management style was so overbearing and riddled with toxicity that it caused a high turnover in staff and therefore placed the employer at risk, I am not convinced that the employee’s management style was indeed the cause of employees leaving/resigning/requesting transfers,” reads the arbitration award.

“I am persuaded to find that the vacancies in her department, which I may add was not an isolated concern pertaining to her department only, was adequately explained by her. I therefore find that the employer failed to discharge the onus on a balance of probabilities that under the employee’s leadership the employees adopted patterns of behaviour detrimental to the employer,” the award reads.

Proper investigations

Snyman Attorneys, which represented Lawson, said the CCMA’s findings were a wake-up call to businesses to properly investigate allegations of bullying.

“This ruling is a significant reminder for employers to not take complaints about bullying and harassment against managers at face value and to conduct proper investigations into the matter which includes hearing and properly considering the version of the manager,” the firm said.

“It underscores the importance of due process and highlights that justice must be served based on evidence and fairness, regardless of the party involved.”

Standard Bank did not want to be drawn on the specifics of the matter.

“In line with protecting the rights of our employees it is our standard practice not to comment on matters that are confidential,” the lender said.

“Standard Bank is committed to fostering an inclusive and conducive work environment. When such allegations are made, they are taken seriously, investigated and appropriate action is taken.

“The bank provides support for all parties involved [if] deemed necessary.”

Khumalok@businesslive.co.za