Peter Elama V UBA: Industrial Court Okays Dismissal, Declares Suspension Without Pay Wrongful And Unjustified, Awards Sum of N24 Million As Emoluments

• 2196 Thursday 17th January 2019

 

Akure – His Lordship, Hon. Justice A. A. Adewemimo of the National Industrial Court of Nigeria, sitting in Akure, South West Nigeria, on Monday 14th January 2018 in a judgment approved the dismissal of Peter Elama (claimant) by the United Bank for Africa Plc (defendant), and also declared as wrongful, the suspension of claimant without pay.

 

The court further ordered UBA to pay Peter Elama total sum of N24, 089,334.00 (Twenty four million, eighty nine thousand, three hundred and thirty four naira) as his emoluments from 11^th October 2011 to 20^th October, 2017.

 

The claimant claimed against the defendant among others; A Declaration that the continuous suspension of the Claimant without issuance of the letter of termination by the Defendant is illegal, null and void. A Declaration by the Honourable Court that the disengagement of the claimant by the defendant is wrong, anomalous and against the rules of natural justice.

 

Likewise, An Order of this Honourable Court compelling the Defendant to pay the Claimant his full salaries of N27, 744,650.00 and allowances due to him from October 2011 till the Day of Judgment.

 

The Claimant’s case is that he was posted to the Defendant during his NYSC service year, thereafter employed as a contract staff, claimant was finally employed as a full time staff on 2^nd January, 2003 and his appointment was confirmed on the 11^th October, 2003.

 

He later rose to the position of Operations Manager with the defendant. It is the claimant’s case that following what the defendant referred to as “Fraudulent conversion of fund from one customer account, investigation was carried out for months and a report was submitted to the disciplinary committee of the Defendant, they also issued a report, neither of which was made known to the claimant. 

 

The defendant thereafter requested the Claimant to proceed on loan recovery suspension with zero pay on the 11^th October, 2011. The Police were later called in by the defendant on the alleged fraudulent conversion and after investigation, the trio suspect including claimant were later discharged and acquitted by the magistrate court.

 

The claimant thereafter caused his solicitor to write the defendant calling for his reinstatement, this was rebuffed by the defendant and till date the defendant failed to issue any letter of termination to him or pay his entitlement and outstanding salaries.

 

The defendant averred that the claimant was a staff of the Defendant but that is no longer the case as he was found guilty of financial impropriety by the disciplinary committee of the Defendant and dismissed for gross misconduct.

 

The defendant argued that the summary dismissal of the claimant is in line with the contract of employment. 

 

Counsel for the claimant in his final written address filed on the 10^th of October, 2018, asked for determination Whether the unsigned suspension letter dated October 11, 2011 served on the claimant by the Defendant was valid and legally binding on the claimant to proceed on suspension. Whether the claimant was still in the employment of the defendant in the circumstance of this case from October 2011 till judgment

 

The claimant averred that since his suspension letter dated October 11^th 2011, he was not issued with any other letter terminating his employment.

 

After careful analysis of all the processes filed, and the submissions of the learned Counsel from both sides. The Court presided by Hon. Justice Nelson Ogbuanya expressed thus;

 

“However, apart from the fact that it was the claimant that tendered this document, he also pleaded it, relied on it and complied with the directive in Exhibit P13 after he was served with the said suspension letter by not going to work. The only attempt he made to go back to work was when he wrote through his solicitor to the defendant wherein he demanded for his reinstatement. The claimant is therefore stopped from denying the validity of the said letter.

 

“I find therefore that Exhibit P13 is a valid and effective letter of suspension from the circumstance of this case. I so hold.

 

"In this case, the Defendant failed to place any evidence before this court in proof that the Claimant was actually served, the consequence of this is that the dismissal only came to the knowledge of the claimant after the initiation of this suit and specifically on the 20^th of October, 2017 when the defendant was served with the statement of defence.

“It is trite that a dismissal takes effect only when it is communicated to an employee.

“I therefore find premised on the above that the claimant's suspension for almost six(6) years without pay by the 1st defendant is wrongful and unjustified and he is therefore entitled to special damages by way of his salaries from 11^th  October, 2011- 14^th August, 2017. I so hold.”

 

The Court held that the dismissal of the claimant by the defendant is valid, and also declared as wrongful the suspension of claimant without pay.

 

His Lordship further declared that Claimant is entitled to a total sum of N24, 089,334.00 (Twenty four million, eighty nine thousand, three hundred and thirty four naira) as his emoluments from 11^th October 2011 to 20^th October, 2017

 

 

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