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Hon. Justice Sanda Yelwa of the Lagos Judicial Division of the National Industrial Court of Nigeria has declared the termination of Mr Bodunrin's employment with Chi Limited to be wrongful and in breach of the contract of employment.
The Court awarded Mr. Bodunrin the sum of N2m as general damages for wrongful termination and N200k as costs of action. The Court also ordered Mr. Bodun to return to Chi Limited the company properties in his possession or pay their assessed market value.
Justice Yelwa held that where parties have reduced the terms of employment into writing, they are bound by those terms, and any termination must comply strictly with the provisions of the contract of employment and the Employee Handbook.
From facts, Mr. Bodunrin had submitted that the allegation of misconduct against him was unfounded and not established. Mr. Bodunrin maintained that the disciplinary committee proceedings were prejudicial and that the termination of his employment was without justifiable cause and without compliance with the agreed terms of his employment.
In defence, Chi Limited contended that it had the right to terminate the employment of Mr. Bodunrin and that the termination was lawful and in accordance with the contract of employment and the Code of Conduct.
In opposition, counsel to Mr. Bodunrin submitted that the alleged breaches were not proved and that the termination letter took immediate effect without the requisite 30 days’ notice or payment in lieu of notice as stipulated in the letter of appointment and the Employee Handbook. Counsel urged the Court to hold that the termination was wrongful and to grant the reliefs sought.
In a well-Considered judgment, Justice Yelwa held that although an employer has the right to discipline its employee, where reasons are given for termination, such reasons must be established to the satisfaction of the Court. The Court was not convinced that the alleged breaches of the Code of Conduct were satisfactorily proved against Mr. Bodunrin.
Justice Yelwa found that the contract agreement between both parties clearly required either party to give 30 days' notice or payment in lieu of notice after confirmation of appointment, and there was no evidence before the Court that Mr. Bodunrin was given the required notice or paid salary in lieu of notice.
The Court held that failure to comply with this fundamental term amounted to a breach of the contract of employment, thereby rendering the termination wrongful.
The Court declined the relief sought, namely the withdrawal of the termination letter, and refused the claim for salaries and allowances from December 2022 to date, holding that such claims were in the nature of special damages, which must be specifically pleaded and strictly proved.
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