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Owerri --His Lordship, Hon. Justice Ibrahim S. Galadima of the National Industrial Court of Nigeria, sitting in Owerri on Tuesday 30th October 2018 in a judgment declared the employment termination of the MR. EMEKA SUNDAY AGBAI (claimant) from the service of SHORELINE CHEMICALS AND OIL SERVICES LIMITED (defendant) as wrongful, ordered payment of N 4,410,000 being arrears of salaries, N 160,988.88 bonus and sum of N420,000 as damages for wrongful termination within 30 days
The Claimant instituted this suit by way of complaint on 31/3/2017, sought against defendant among others; The sum of N4,410,000 (Four Million, Four Hundred and Ten Thousand, Naira) being salary arrears for March 2014-July 2014, September 2014, balance half of salary for October 2014 and November 2014 -February 2015 at N420,000 monthly and N210,000 for half month salary. The sum of N4, 620, 000 (Four Million, Six Hundred and Twenty Thousand Naira) being the value of the Claimant's monthly gross salary multiplied by 11 years as stipulated by the Defendant's employee's handbook as redundancy benefits. Likewise, The sum of Nl0, 000,000 as damages wrongful termination.
Two issues were raised in the final address of the counsel for the Defendant Whether the Claimant has proved his case to be entitled to all his claims or the reliefs sought for; and Whether the Claimant can rely on the defendant non-functional handbook to be making claims of entitlements, benefits and allowances?
With respect to the first issue, counsel argued that the Claimant only proved that he is being owed certain salaries which can only be determined and calculated by the defendant's account department, and the defendant is not owing the Claimant any other money, the court was urged to allow the account department of the defendant to determine and calculate the Claimant's unpaid salaries and pay him accordingly.
On issue two, it was the submission of the defendant that the Claimant is not entitled to entitlements contained in the suspended handbook which was never in use at and during the pendency of the employment of the Claimant.
On the issue of damages for wrongful termination claimed, the defendant argued that the Claimant is not entitled to any damages.
In conclusion, defendant’s counsel argued that the Claimant is being owed salary which should be calculated by the defendant's account department. That the amount presented by the Claimant cannot represent his salary because he is not in a position to calculate same. That the Claimant is not entitled to any of the entitlements in Exhibit CW8 or any damages at all.
In the Claimant counsel’s address, Counsel submitted that the contention of the defendant that handbook was suspended and that the Human Resources Manager gave the document without authority is not supported by any evidence. Also, it was contended by counsel that the defendant admitted under cross-examination that it owed the Claimant salaries in arrears.
For the Claimant's leave bonus, pension deductions, pension contributions, and redundancy benefits, he referred the court to the defendant’s handbook, and section 9 of the Pension Reform Act 2004 and urged the court to grant same as they have been proved.
After reviewing the argument of both parties, the Court Presided by Hon. Justice Ibrahim S. Galadima expressed thus;
“This fact that the defendant owed him salaries was admitted by the defendant’s witness during cross-examination on 12th June 2018. The Defendant admitted almost all the averments made by the claimant in this regard.
“Consequently, I must hold that on February 27, 2015, when the defendant terminated the employment of the claimant, it did so without giving one month notice or paying one month salary in lieu of notice in breach of exhibit C1, which is the contract of employment; and at trial it also did not substantiate the reason given for the termination, making the termination wrongful.
“Therefore, I find that the claimant has proved that he was not paid any salaries during the months listed above. An employee is to be paid for the period he worked for his employer up to the date the contract of employment is severed. For this reason, I grant relief A in this suit.”
On redundancy benefit, His Lordship maintained that nowhere in the statement of facts suggesting that the handbook was adopted by reference into the employment contract between the parties. Therefore, held that claimant is not entitled to his relief for redundancy benefits
In all, the Court ordered defendant to pay to the claimant the aggregate sum of N 4,410,000 being arrears of salaries for March, April, May, June, July, September, November, and December 2014, January and February 2015 alongside half salary for October 2014. The sum of N 160,988.88 as bonus 13th-month salary for the year 2014. The sum of N819,000 deducted from the claimant’s salary from January 2012 and February 2014 but not remitted to the designated fund administrator as pension and The sum of N420,000 only as damages for wrongful termination within 30 days of this judgment.
