The termination of AB Bank employees came at a time when five banks have slashed salaries in a bid to reduce costs
At least 80 employees of AB Bank Ltd have been reportedly terminated or forced to resign recently amid the Covid-19 pandemic on the grounds of unsatisfactory performances.
"The management of the bank has decided to terminate your employment from the service of the bank effective July 12, 2020," says a termination letter issued to an employee.
"Please note that on termination you will be paid all dues as per AB Bank staff service rules," reads the letter seen by Dhaka Tribune.
AB Bank's termination benefits include three months' basic salary.
Banking activities came to a near-halt due to the coronavirus outbreak and the subsequent countrywide shutdown for more than two months, leading to a dip in profits.
On June 14, the Bangladesh Association of Banks (BAB) recommended that banks could reduce salaries of its employees by up to 15%.
The termination of AB Bank employees came at a time when five banks have slashed salaries in a bid to reduce operating costs amid the pandemic.
"Around 80 people were laid off since January this year due to poor performance," AB Bank's Managing Director Tarique Afzal told Dhaka Tribune, adding, "Most of them resigned and a few were terminated."
"How can an employee keep his or her job, if he or she cannot perform even after 20 years?" he asked.
"We trained to improve their skills and performance, but they failed. Banks can’t perform without efficient human resources," he added.
The AB Bank top official said the move was taken as there was no other option to “protect the public’s money”.