Bank men sue over `job stigma'

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The Independent Online
For the thousands of workers who lost their jobs following the collapse of the scandal-ridden Bank of Credit and Commerce International, redundancy was only the first blow.

Former employees, such as Raihan Nasir Mahmud, manager of the branch in Chelsea, west London, and Qaiser Mansoor Malik, head of deposit accounts at the Leadenhall branch, in the City of London, say they have been unable to find new jobs in the financial services industry because of the stigma of their links with BCCI.

Yesterday the House of Lords ruled that their employment prospects had been blighted by the bank's fraudulent behaviour and said they were entitled to sue its liquidators for "stigma" damages.

Up to 12,000 ex-employees of BCCI could theoretically sue as a result of the landmark judgement, which also opens the possibility of a flood of claims by former staff of other corrupt or dishonest companies.

Lord Nicholls said: "Employers must take care not to damage their employees' future employment prospects by harsh and oppressive behaviour or by conduct which is unacceptable today as falling below the standards set by the implied term of trust and confidence."