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Lagos --His Lordship, Hon. Justice E. A. Oji of the National Industrial Court of Nigeria, sitting in Lagos on Tuesday 25th September, 2018 in a judgment ordered PORTS AND CARGO HANDLING SERVICES LTD –defendant to pay MR. OKECHUKWU DENNIS IWUALA -Claimant the sum of N2, 288, 083.33 being the Claimant’s outstanding redundancy benefits and the sum N500, 000.00 as General Damages to the Claimant within 30 days.
The Claimant commenced this action against the Defendant by a General Form of Compliant on 13th September 2017. The Claimant claims the following reliefs against the Defendant: The sum of N2,288,083.33 (Two Million, Two Hundred and Eighty-Eight Thousand Eighty Three Naira and Thirty Three Kobo) being the Claimant's outstanding redundancy benefits at the time he was relieved of his duties on redundancy on the 18th day of March 2016. Likewise General and punitive damages in the sum of N10, 000,000.00 (Ten Million Naira).
The case of the Claimant is that he was an employee of the Defendant from 3rd November, 2008 and His appointment was confirmed via a letter dated 1st December, 2009. On 18th March, 2016 when he was relieved of his duties on grounds of redundancy. The redundancy letter also carried the Claimant's terminal and redundancy benefits as calculated by the Defendant.
Claimant asserts that the Defendant kept the company's handbook (which contains worker's condition and terms of service including the calculation pattern of workers benefits) out of the reach of workers and as such no staff had at his disposal the handbook that contains his condition of service.
The Claimant asserts that as at the effective date of his redundancy, he had put in 7 years 4 months and 16 days of service and calculating on the basis of the provision of the contract of employment referred to above will entitle him to the sum of N1,288,083.33(Two Million, Two Hundred and Eighty-eight thousand eighty-three naira, and thirty-three kobo but was paid only N315,000.00(Three Hundred and Fifteen Thousand Naira) which is less than his redundancy benefit for one year. Claimant states that after several representations to the Management of the Defendant to no avail, a group of those affected by the unpaid redundancy benefits took their complaints to the Federal Ministry of Labour and Employment but the Defendant refused to pay them.
During cross examination, Claimant stated that he got the SIFAX Handbook after he had been disengaged and they were informed they were short paid. He stated that they got it from the Admin.
The case of the Defendant is that it operates an open policy and usually gives the extant handbook to any employee of the company at the time of his employment. Defendant asserts that it paid the Claimant what he is entitled to, including his terminal benefits and the redundancy benefits as contained in the Defendant's handbook. Defendant relies on the Sifax Handbook which became operational on 1st March 2016. Defendant contended that Claimant referred to the old handbook which was replaced with a new Handbook. That the old handbook which became effective on 1st January, 2013 was expressly stated on its page 1 to be subject to review after three years. The old Handbook was reviewed by the company upon consultation with the Claimant's Union Representatives and, the Maritime Workers Union of Nigeria.
During cross examination, witness to the Defendant stated that as long as the new Handbook has not come into effect, the old one is the operational one.
Claimant stated that no employee of the Defendant was given a copy of the Handbook and that the new SIFAX Handbook never existed as at the time both the redundancy letter and the incomplete payment was made by the Defendant to the Claimant.
Claimant also states that at no time before this suit did the Defendant’s state that there was a new Handbook; and that the purported new Handbook is a fabrication and an afterthought to deny the Claimant his rightful redundancy benefit.
After reviewing the argument of both parties, the Court Presided by Hon. Justice E. A. Oji expressed thus;
“In alleging that the 2013 Handbook had been changed pursuant to the meeting recorded in the exhibit above, Defendant did not proceed to show that thereafter further steps were taken to change the Handbook. The Defendant did not also show how and when the Recommendations for the new Handbook was presented to the Union as agreed at the meeting of 11th January 2016. Again, short of stating that they have introduced a new Handbook in their evidence, there is no proof of how it was introduced, and how the staffs were informed.
“Having stated this, it was expected of the Defendant to tender the documents of Notice given to the various Heads of Departments; and the onward Notices to the individual employees. This, the Defendant failed to do.
“Having found that the old SIFAX Handbook was the operational Handbook at the time the Claimant was disengaged, I have considered the tabulation of what is due to the Claimant as presented in his evidence, which was not challenged, and find that the Claimant is entitled to Relief 1 of his claim for the sum of N2,288,083.33(Two Million, Two Hundred and Eight-Eight Thousand Eighty Three Naira Thirty Three Kobo) only, being the Claimant’s outstanding redundancy benefits at the time of his redundancy on the 18th day of March 2016, I so hold.” His Lordship stated.
The court also ordered Defendant to pay the sum of N500, 000.00 as General Damages to the Claimant, and the adjudged sums are to be paid within 30 days from this judgment, failing which it shall attract interest at the rate of 10% per annum.
