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Just In: Industrial Court Orders Fidelity Bank To Pay Ex-Staff N930,991.66 Net Entitlement, N5 Million For General Damages Within 14 Days

  • 2548 Monday 28th May 2018

 

 

Enugu----His Lordship, Hon. Justice I. J. Essien of the National Industrial Court of Nigeria, Enugu Judicial Division on Monday 28th May in a judgment delivered ordered FIDELITY BANK PLC to pay MR. OLISAH GERALD CHIDI (claimant) sum of N930,991.66 as net entitlement and payment of 5 Million naira as general damages to the claimant for the unlawful act of withholding the claimant’s reference letter and end of service entitlement which resulted in the unemployed status of the claimant.

 

The claimant’s case is that he was employed by the FIDELITY BANK PLC  dated 23rd December, 2013.  He resigned his appointment on the 19th December, 2016 and the resignation was approved on the 17th February, 2017 and he became entitled to the sum of N930,991.66k as his end of service entitlement.  FIDELITY BANK PLC has refused to pay the said entitlement and also refused to issue a Reference Letter demanded by his new employer Sterling Bank Plc thus leading for being asked to stop work by his new employer. 

 

On the other hand the defendant as revealed in their statement of defence contend that the claimant has an unresolved loan facility which as the relationship manager of one of the 1st defendants client he was under a duty as banking practice requires to recover from J. Collins Expansion Ltd, before they could pay the claimant the end of service entitlement and also before any reference letter could be sent to his new employer, Sterling Bank Plc. 

 

 

 

In his evidence the claimant was the Relationship Manager of one of the customer of the 1st defendant who granted a facility of N4,557,000.00k on the 25th June, 2015.  The customer defaulted in repayment of the loan, leading to the restructuring of the facility through a credit appraisal memo written by the claimant and was duly accepted by the company.

 

After reviewing the argument of the parties, the Court Presided by Hon. Justice I. J. Essien expressed thus;

 

“…1st defendant rather than exercise the rights vested in him by the agreement entered into voluntarily with J. Collins Expansion Ltd. Choose to embark on an unauthodox and unethical banking practice by seeking to hold the claimant responsible for a transaction which the claimant never undertook any personal liability but rather acted as an agent of the 1st defendant in his ordinary course of business.

 

 It is also worthwhile to note that there is no stipulation in the letter of appointment given to the claimant which could call in the personal liability of the claimant. 

 

The defendants failed to prove the banking custom/practice exist which entitled them to withhold the end of service entitlement of the claimant and also refuse to issue the claimant’s new employer a reference letter.  I must state here very clearly that such a custom even if it exist amounts to an unfair labour practice which this court if called upon would not hesitate to strike down.

 

 

This court holds the 1st defendant cannot deny the claimant his right to the sum of N930,991.66k being his end of service entitlement on the grounds of un-existent banking custom.  The act of the 1st defendant amounts to unfair labour practice.  This court therefore enters judgment in the sum of N930,991.66k in favour of the claimant.

 

It is not also in dispute that the unlawful act of the 1st defendant’s refusal to issue the reference resulted in the suspension of the claimant from his new employment. 

 

In the circumstances I find that the claimant is entitled to damages for the unlawful act of the 1st defendant.  Accordingly I enter judgment in favour of the claimant against the 1st defendant in the following terms.

 

  • The 1st defendant shall pay the sum of 930,991.66k representing the claimant’s end of service entitlement to the claimant forthwith.
  • The 1st defendant is ordered to release the claimant’s reference to Sterling Bank Plc. Within 7 working days from the date of this judgment and to any other employer as maybe demanded on behalf of the claimant;
  • The first defendant shall pay the sum of 5 Million naira as general damages to the claimant for the unlawful act of withholding the claimant’s reference letter and end of service entitlement of the claimant which resulted in the unemployed status of the claimant.
  • As regards the claim of 10% interest on the sum of N930, 991.66K from 22nd February2017, until payment of the sum, the claimant offered no evidence in proof of his entitlement of interest on the above sum as claimed. The claim therefore fails and is hereby dismissed.

 

The monetary judgment made by the court in this judgment shall be satisfied within 14 days from the date of this judgment failure of which it shall attract interest at the rate of 5% until liquidation of the judgment debt.

 

 

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