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Judgment: Industrial Court Declares Indefinite Suspension of Staff Without Pay Wrongful

  • 3772 Tuesday 13th March 2018

 

His Lordship, Hon. Justice F. I. Kola-Olalere of the National Industrial Court of Nigeria, Ibadan division on the 8th day of March 2018 delivered judgment against Zenith Bank declared as wrongful the Indefinite Suspension of the claimant without pay and orders defendant to pay 28months’ gross salaries and allowances to Mr. Dawodu Kazeem.

 

This is a transferred case from the High Court of Justice, Kwara State sitting in Ilorin. In the regularized processes including the complaint filed by the claimant before this court, the claimant is seeking for the following reliefs against defendant amongst others; A Declaration that the failure of defendant to allow the claimant to state his case before been suspended and dismissed is a violation of the Fundamental Rights of the claimant's right to fair hearing as enshrined in the Constitution of the Federal Republic of Nigeria, 1999 (as amended). A Declaration that the purported suspension and subsequent dismissal of the claimant is null, void and unconstitutional. And An Order directing the defendant to pay the claimant's salaries, allowances and other entitlements from the date of his purported suspension to the date of judgment.

 

In response, the defendant entered appearance through its counsel and filed its statement of defence and a counter claim including its other defence processes in compliance with the Rules of this Court.

 

The case of the claimant is that after he was employed by the defendant, he assiduously worked and discharged his duties for the progress of the defendant without any report of dereliction of duties against him. He rose to the position of the Branch Manager of the defendant with implied power to grant short term loans in line with the customary practices in the institution (Zenith) in Offa Branch.

 

The claimant averred further that barely three weeks of his last promotion and upon assumption of duties at Ado-Ekiti Branch of the defendant, the claimant was placed on suspension and later dismissed.

                             

The defendant/counter-claimant then formulated two issues for the court’s determination, Whether considering the totality of the evidence placed before this Honourable Court, the Defendant/Counter-Claimant breached the claimant’s right of fair hearing by terminating the claimant’s appointment and Whether the claimant is entitled to the claims being sought in this suit.

 

After reviewing the argument of both parties, the Court presided by Hon. Justice F. I. Kola-Olalere expressed thus;

It is not in dispute between the parties that the claimant was put on indefinite suspension without pay prior to his dismissal by the defendant. On this issue of suspension; therefore, Zenith Bank Plc. Human Resources Policy Manual is apposite.

While I agree with the defendant that it has power to suspend the claimant indefinitely, it is not stipulated in Document D.11 that the defendant Bank can indefinitely suspend the claimant without pay. Since, there is no such express provision in the terms and conditions of the contract that the claimant can be suspended indefinitely without pay, then, case law principle on this issue applies.

The purport of these decisions is that as long as an employee is on suspension either for a fixed period or indefinitely; with or without pay, his employment is still intact, except it is otherwise expressly provided in his terms of employment. Thus, he is entitled to his salaries and allowances for the period in question.

In my considered view, the allegation in the letter of Indefinite Suspension was not followed to terms. It was not pursed to logical conclusion as it was abandoned at the point when the claimant was dismissed from the defendant’s employment without any reason.

On the whole, His Lordship declared amongst others as follows; “I declare that the Indefinite Suspension of the claimant by the defendant was in compliance with the terms and conditions of the contract of the employment. However, I further declare that the Indefinite Suspension of the claimant without pay was done contrary to the terms and conditions of the contract and so, it is wrongful.”

“I declare that the dismissal of the claimant without reason is contrary to the terms and conditions of the employment because the said dismissal should be for a specified offence as listed in the terms of employment; hence, the dismissal is wrongful.”

 

“I order that the 28months’ gross salaries and allowances of the claimant for the period of his suspension is to be calculated based on the claimant’s last earned salary from the defendant, together with the ordered cost are to be paid to the claimant within 60 days from today.”

 

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