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Industrial Court Orders Firm To Pay Ex-Staff N11 Million Redundancy Benefits Within 30 Days

  • 1641 Wednesday 14th November 2018

 

Bayelsa --His Lordship, Hon. Justice S. H. Danjidda of the National Industrial Court of Nigeria, Sitting in Yenagoa, Bayelsa State on Wednesday 12th October 2018 in a judgment ordered Shoreline Dredging And Oil Services Limited (defendant) to pay ex-staff Amos Tukura (claimant) the sum of N11, 117, 800 (Eleven Million, One Hundred and Seventeen Thousand, Eight Hundred Naira) being one and half monthly gross salary for 18 years as redundancy benefits within 30 days.

 

The Claimant instituted this on 31/3/3017 and sought among others; The sum of N4,323,375 (four Million, Three Hundred and Twenty Three Thousand, Three Hundred and Seventy Five Kobo) being salary arrears for march 2014 -July, 2014, September 2014, unpaid half of a month's salary for October 2014 and salaries for November, 2014 - February 2015 at N411,750 monthly and 205,875 for half of a month's salary. The sum of N172,935 (One Hundred and Seventy Two Thousand, Nine Hundred and Thirty Five Naira) being leave bonus for 2014 assessed at 3.5% of the annual gross salary of N4,914,000.

 

Likewise, the sum of N11, 117, 800 (Eleven Million, One Hundred and Seventeen Thousand, Eight Hundred Naira ( being one and half monthly gross  salary for 18 years as stipulated by the defendant's employee's handbook as redundancy benefits.

 

The claimant testified that the defendants employed him on 28/8/1997 and dutifully served the defendant and was promoted severally till he rose to the position of purchasing/Logistics Manager. Claimant further testified that his employment was terminated by the defendant on the ground of redundancy. That prior to the termination of the Claimant, his monthly salary was N411, 750.00.

 

According to the Claimant, the defendant is indebted to him for ten and half months salary arrears which have not been paid and this is indicated in the Claimant's statement of account, and that his also entitled to a yearly 13 month salary for the year 2014 which was not paid to him. That he made several demands to the defendant for his monies but they have refused to pay him.

 

Defendant admitted through witness that the claimant employment was terminated on the as a result of redundancy. That the Claimant was also fond of fighting other managers of the defendant thereby soiling the image of the defendant. That the defendant is not owing the Claimant any salary and the handbook which the Claimant is relying on for his claims has never been in use since the employment of the Claimant. That the Claimant's claims based on purported benefits or entitlements are false, unrealistic and baseless.

 

Under cross examination, Defendant witness stated that it is true that salaries of the Claimant were not paid from march 2014 to 2015. That there is nothing before the court showing that monies deducted from the Claimant's salary by the defendant were remitted to the Pension fund Administrator nor was it before the court that it remitted its own contribution to the Pension Fund Administrator. That he knows one Mr Precious Iyala who worked with the defendant and whose entitlement was paid in accordance with the handbook.

 

Defendant submitted that the fact that it paid one of its former staff his entitlement based on handbook does not mean that it had elected to pay every staff. Defendant argued that it paid Mr. Precious as an ex-gratia and because the said staff contributed immensely to the development of the company.

 

In conclusion, defendant 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 staff handbook or any damages at all.


After carefully considered all the processes filed, the evidence led and the submissions of the learned Counsel from both sides. The Court presided by Hon. Justice S. H. Danjidda expressed thus;

 

“Defendant witness also under cross examination admitted that the defendant is indebted to the Claimant and said that his statement on Oath denying defendant's indebtedness to the Claimant is not true. 

 

“I wish to state that the most significant consideration which an employer may give an employee in return for work performed or services rendered to the employer is the employee's monetary renumeration in terms of salary or wages in legal tender such as cheque, cash or postal orders. Employment is not to be gratuitous.

 

“Further to this, Defendant witness said under cross examination that there was nothing before the court to show that handbook was suspended and he maintained that one Precious Iyala was paid his benefits in accordance with the handbook. From this piece of evidence, the defendant violates his duty owed to the Claimant to treat him fairly and without discrimination.

 

On the Whole, His Lordship granted some of the Claimant's reliefs, among others, ordered defendant to  pay Claimant the sum of N4,323,375 being salary arrears for 10 and a half months, the sum of N157, 293.73 being 13th month salary for 2014, the sum of N172,935 being leave bonus for 2014 assessed at 3.5% of the annual gross salary and The sum of N11, 117, 800 (Eleven Million, One Hundred and Seventeen Thousand, Eight Hundred Naira) being one and half monthly gross  salary for 18 years as redundancy benefits within 30 days from the day of the judgement.

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