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Industrial Court declines retiree’s benefit claim, awards N5m damages against Business Outfit

  • 219 Thursday 12th December 2024

The Presiding Judge, Akure Judicial Division of the National Industrial Court, Hon. Justice Kiyersohot Damulak, has declared Norwood Executive Drivers Management's decision to retire Mr. Alonge without paying him his retirement benefit unjustified and an unfair labour practice.


The Court ordered Norwood Executive Drivers Management to pay Mr Alonge N5,000,000.00 (Five Million) Naira only as general damages for the unfair labour practice and unjustified retirement within 21 days.


However, Justice Damulak refused to grant Mr Alonge’s 10 Million Naira retirement benefit claim on the failure of Mr Alonge to plead and produce the document forming the agreement and basis for the calculation of retirement entitlement.


From facts, the claimant- Mr. Alonge had submitted that he worked with the defendants between the years 2000 to 2020 before his appointment was determined by a letter titled Advice to Proceed on Retirement and that he is very healthy and not suffering from any ailment as stated by the Norwood Executive Drivers Management in its letter of retirement and that he is still having three years of service before retirement.


Mr. Alonge averred that upon receipt of the letter of retirement, he waited for the defendants to call him to fill in the necessary documents for his retirement benefits but all were to no avail.


In defence, the 1st defendant- United Bank for Africa Plc (UBA) stated that Mr. Alonge was deployed to serve by the personnel service provider who employed him, that the card issued to Alonge was a mere access card which gave him access to the premises and facilities of the bank which is in line with the agreement between the UBA and Norwood Executive Drivers Management.


United Bank for Africa further averred that it’s not responsible for the determination of the terms of Mr Alonge’s employment as well as payment of any benefit that the company was not in any way involved in the retirement of Mr Alonge.


In addition, the 2nd defendant- Norwood Executive Drivers Management contended that as a vendor to the UBA, it was wrongly joined to this suit; that there is no reasonable cause of action disclosed against it; the suit is therefore frivolous and same shall be urged to be dismissed against the Norwood Executive Drivers Management.


The Norwood Executive Drivers Management also argued that it is a registered business name and so is not a juristic person and cannot sue and be sued and urged the Court to strike out its name.


In opposition, the learned counsel to Alonge, ThankGod Ekpah Esq posited that his client is an employee of the United Bank for Africa and does not know the Norwood Executive Drivers Management except when he received his retirement letter on its letterhead, and urged the Court to grant the reliefs sought.


In a well-considered judgment, the presiding Judge, Justice Kiyersohot Damulak held that the Rules of the Court provide an exception under which the Norwood Executive Drivers Management can sue and be sued in the circumstance as a business name whose business is allegedly affected.


Justice Damulak reasoned that based on the letter of employment in evidence, it would have been easy to hold that Mr Alonge was an employee of Standard Trust Services Limited, which is a separate entity from Standard Trust Bank because the content of the retirement letter issued to Mr Alonge admits that Mr Alonge was a staff of the Norwood Executive Drivers Management. 


The Court faulted the retirement of Mr Alonge by the Norwood Executive Drivers Management without paying him his retirement benefit as an unjustified action and an unfair labour practice.


On the claim for N10,000,000.00 as retirement benefits, Justice Damulak said Mr Alonge did not make any attempt to show how he was entitled to retirement benefits and did not prove or justify the amount prayed for.


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