The contracts of all employees of the collapsed Heritage and Premium banks have been terminated, with a three-month contract being offered in its place.

This was done by the receiver of the collapsed banks, Vish Ashiagbor of PricewaterhouseCoopers (PwC).

The new arrangement is that, the employees have now been given a three-month contract to work with their new employer, Consolidated Bank Ghana Limited (CBG).

Workers of Heritage, Premium Banks given three-month contract. Source:
Source: UGC
The number of workers involved is estimated to be around 200 for both Heritage and Premiums banks.

The licences of the aforementioned banks were revoked January 2019 by the Bank of Ghana.

The Central Bank subsequently approved a purchase and assumption agreement with CBG to takeover some of the assets and all liabilities of the now defunct banks.

To this end, the workers were given their termination letters, but they have now been given three-month contracts to work for the CBG.

The letters were signed by the receiver, Mr Vish Ashiagbor of PrincewaterHouseCoopers (PwC).

“As explained to you on Friday, January 4, 2019 by virtue of the receivership, your contract of employment has terminated.

“For the avoidance of doubt, your working relationship is not suffering from severance under Section 65 of the Labour Act 2003 (Act 651),” sections of the letter read.

On the proposed three-month contract for the workers, it said: “for a period commencing from January 8 2019 and ending 31 March, 2019.

“You are being immediately seconded to CBG and you will continue to work under the direction of CBG management at your existing branch/office.”