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Entitlement Claims: Industrial Court Orders Firm To Pay Dis-Engaged Staff UnRemitted Pension And Housing Funds, 2Million Damages Within 30 Days

  • 1714 Tuesday 9th October 2018

 

 

Yenagoa --His Lordship, Hon. Justice B. A. Alkali of the National Industrial Court of Nigeria, sitting in Yenagoa on Tuesday 9th October, 2018 in a judgment ordered and directed the INDUSTRIAL AND GENERAL INSURANCE PLC -Defendant to pay ADELEKE A. OJABANJO -Claimant his entitlements due at the date of his disengagement as well as full payment of the employer and employee contributions from the pension scheme in the sum of  N7,492,785 within 30days in respect to the rules and regulations governing the company entitlements of employees.

 

The Claimant by complaint dated 15th November, 2016 and sought against the Defendant the sum of N100, 000,000.00 (One Hundred Million Naira) only as entitlement upon disengagement from the Defendant’s service and as damages for the Defendant’s failure to faithfully remit deductions from Claimants salaries as Claimant’s contributions to the compulsory pension fund, failure to faithfully pay her counterpart contribution to the said fund and also for failing to pay the aforesaid entitlement within time thus occasioning losses, pain and trauma to the claimant”.

 

The Claimant’s case is that he was a staff of the Defendant for over 16 years and was among the other staff of the Defendant who were disengaged of their services in a nationwide mass disengagement on the 22nd day of September 2015.

The Defendant in response to Claimant’s demand stated that they have computed Claimant’s entitlements to the tune of N5,749,408.00 (Five Million, Seven Hundred and Forty-Nine Thousand, Four Hundred and Eight Naira) only but has however deducted some outstandings which then reduced it to the sum of N2,691,356.00  (Two Million, Six Hundred and Ninety One Thousand, Three Hundred and Fifty Six Naira).

The Claimant however disputed the above sum on the ground that the applicable computation to him as at the time of disengagement based on status and level in the Defendant’s company was provided in the Defendants employee handbook pursuant to which the Claimant computed the entitlement due to him to the tune of N7, 492,785.14 (Seven Million, Four Hundred and Ninety-Two Thousand, Seven Hundred and Eighty-Five Naira, Fourteen Kobo).

The Claimant in his witness deposition also stated that aside the failure of the Defendant to pay the actual computed entitlements to the Claimant, the Defendant equally failed to remit faithfully deductions made from Claimant’s monthly salary to the pension fund manager and also failed to remit her own counter-part contribution faithfully. The said failures of the Defendant caused Claimant the interest of the unpaid amount would have attracted.

 

The Defendant raised a lone issue for determination Whether the Claimant from the totality of the evidence is entitled to the sum of N100, 000, 000.00 (One Hundred Million Naira) damages following his disengagement from the service of the company.

It is also the contention of the Defendant that the Claimant completely abandoned the demand for his disengagement benefits which he tried unsuccessfully to prove from his averments in the Statement of Facts and his Witness Deposition.

Claimant submitted that he has proved his case on the preponderance of the evidence. Without doubt, this case is a dispute as to the actual entitlement due to the Claimant upon the termination of his employment by the Defendant.

The Claimant averred that his entitlement is 14 weeks of his basic salary for the 16 years he put into the service of the Defendant. Claimant further avers that he is also entitled to be paid salaries and all allowances due at the date of disengagement as well as full payment of employer and employee contributions from the pension scheme.

The Claimant further pleaded and testified that the Defendant failed to correctly remit deductions from his salaries to the pension fund managers engaged by the Defendant for the purpose of the mandatory contributory pension savings.

After reviewing the argument of both parties, the Court Presided by Hon. Justice B. A. Alkali expressed thus;

 “The Claimant has proved through Exhibits that an employee of 15 years and above is entitled to 14 weeks basic salary for each completed year of service.

“It is my considered views that there are rules and regulations governing the entitlements of employees, such conditions of service like this instant case must be complied with.

“In view of the foregoing facts, I enumerated ab-initio I hold that the Claimant has satisfactorily proved his case and as such he is entitled to the reliefs claimed.

The Court ordered and directed the Defendant to pay to the Claimant his entitlements due at the date of his disengagement as well as full payment of the employer and employee contributions from the pension scheme in the sum of  N7,492,785.14k (Seven Million, Four Hundred and Ninety Two Thousand, Seven Hundred and Eighty Five Naira, Fourteen Kobo), N778, 210.71K (Seven Hundred and Seventy Eight Thousand, Two Hundred and Ten Naira, Seventy One Kobo) as the sum unremitted by the Defendant to the Claimant’s pension fund manager, and  N2, 000,000 (Two Million Naira) only as damages for the Defendant’s Failure to faithfully remit deductions from the Claimant’s salaries as Claimants contribution to the compulsory pension fund, failure of the Defendant to faithfully pay her counterpart contribution to the said fund and also for failing to pay the aforesaid entitlements within time thus occasioning losses, pain and trauma to the Claimant within 30 days from today.

 

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