Employment

Dubai court dismisses ex-Standard Chartered employee’s claims of discrimination in landmark ruling

Clyde & Co successfully represented the bank in the case, which is the first of its kind to be decided under current law.

An ex-Standard Chartered employee who claimed he had been subject to discrimination and victimisation over the course of his employment has had his case dismissed by the Dubai International Financial Centre (DIFC) Courts.

The claimant, a British national of Asian origin, was employed as the bank’s head of compliance for global Islamic banking, based in Dubai, from June 2017 until his employment was terminated by reason of redundancy in January 2021.

He claimed to be the victim of a long-term racist conspiracy involving many senior managers of the global bank in a large number of jurisdictions, and sought the maximum compensatory award for numerous acts of discrimination and victimisation.

He claimed he was treated unfavourably because of his “status as a British Asian of partly Pakistani origin who spoke with a British accent [which] was taken to associate him with British colonial rule and/or to suggest that he had repudiated a Pakistani identity”, in a context where nearly all of the team were of Pakistani origin, according to the 188-page judgment handed down on October 1.

He alleged that comments were regularly made highlighting how he pronounced certain words and that he was asked to repeat himself as he could not be understood.

He also claimed to be referred to as “you Britishers” or “you Brits”.

He claimed the bank should be fined for breaching its statutory duty to provide and maintain a workplace free of discrimination and victimisation, and without risks to health and safety.

He sought compensation equal to one year of his salary—AED 779,992.08—and damages three times the amount prescribed under DIFC law.

Following a multi-week trial in the new DIFC Courts, Chief Justice Wayne Martin delivered his judgment, dismissing each and every allegation made by the claimant.

“The evidence fails to establish that any detriment or disadvantage suffered by [the claimant] during the course of his employment with the bank was occasioned on the ground of his race or nationality,” he said.

It is the first discrimination and victimisation case to be decided by the court under current law, providing welcome guidance on the practice and procedure of bringing and conducting complex and high-value claims of this nature.

Clyde & Co partner Ben Brown and senior associate David True represented the bank. They were instructed by Yasser Shabbir, head of employment law for Africa, the Middle East, and Pakistan, at Standard Chartered. Mohinderpal Sethi KC of Littleton Chambers was instructed as counsel.

“It shows that the DIFC provides a legal framework in which serious allegations of discrimination and harassment by employees can be scrutinised in a rigorous, fair, and just manner,” Brown and True told Law Middle East.

“It confirmed that the burden of proof in discrimination cases lies with the complainant—in other words, the complainant has to prove they have been discriminated against,” they said. “However, the court also confirmed that where the primary facts suggest a real prospect of discrimination, the failure of the employer to provide an explanation may support the drawing of an inference that there has been discriminatory conduct.”

Brown and True, who joined the firm earlier this year, said the ruling emphasises the need for employers to follow their internal policies and procedures when dealing with disciplinary and performance issues.

Charles Russell Speechlys represented the claimant, with James Bickford Smith of Littleton Chambers instructed as counsel.

Charles Russell Speechlys declined to comment on the outcome of the case.

The DIFC is home to approximately 5,000 companies and 50,000 employees. It is a common law jurisdiction with its own employment legislation and English language court system. In August 2019, the DIFC’s new employment law came into force with a new set of anti-discrimination provisions.

Aishah Hussain

Aishah Hussain is the Editor of Law Middle East, based in Dubai. Got a story or tip? Email: aishah.hussain@itp.com