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Owerri – His Lordship, Hon. Justice I. S. Galadima of the National Industrial Court of Nigeria, sitting in Owerri, on Tuesday 22nd January 2018 via judgment delivered ordered LUBRIK CONSTRUCTION COMPANY (defendant) to pay SAMUEL IPAH and GODSAVES OSUJI (claimants) One month’s salary in lieu of notice, redundancy allowances, sum of N500,000.00 only as cost of action, and as well as N500,000 general damages within 14 days.
This action was filed by the Claimants on the 30th of March, 2017 and sought against defendant amongst others; A declaration that the refusal and failure of the Defendant to issue the Claimants with letters of employment with conditions of service properly marshaled out, is illegal, unlawful and was done in bad faith. An order for the payment of N1,500,00 to the 1st Claimant and N1,000,000.00 to the 2nd Claimant for neglecting and refusing to issue them with letters of employment for a period of six and four years respectively.
Likewise, An order for the payment of N2,000,000.00 (Two Million Naira only) to the 1st Claimant and N1,500,000.00 (One Million, Five Hundred Thousand Naira only) as redundancy Allowances.
The 1st and 2nd Claimants were drivers initially in the services of the Defendant. The 1st Claimant was employed in 2010 and his services terminated on the 15th of September, 2016. The 2nd Claimant was employed January 2012 and his employment was accordingly terminated on the 31st of August, 2016.
It was purported that all through their employment as drivers, they were never given any written letters of employment. The failure to so do had accordingly placed them in disadvantaged positions since they were uncertain about their due entitlements like leave and accident-free allowances unlike other expatriate employees in the Company who were given letters.
Accordingly, the Claimants believed that the Defendant’s refusal and failure to issue them with letters of employments was fraudulent and an unwholesome act that worked hardship and occasioned them pain and misery.
In argument on non-issuance of letters of employments, the Defendant admitted that Claimants were employed even though no letters of employment were given them. That facts admitted, need no further proof.
On liability for non-issuance of letters of employment, the Defendant Counsel believes the Claimants are not justified in the request for payments of N1,500,000.00 and N1,000,000.00 respectively to them. That this is so because the Claimants received ample explanations on what their employment entailed from the time they were employed.
Counsel also pleaded with the Court to resist the urge to believe that the Claimants were not paid their redundancy entitlements, that the second Claimant’s case, his salary was N39,000.00 per month but he was paid N82,000.00.
Finally, Counsel argued that the payment of redundancy allowance is compulsory and distinct from payment of a token in lieu of notice. The Court was urged to find in favour of the claimants who have accordingly proved their case on credible evidence.
After careful analysis of all the processes filed, and the submissions of the learned Counsel from both sides. The Court presided by Hon. Justice I. S. Galadima expressed thus;
“Continuing to work for six and four years respectively implies tacit agreement to whatever transpired during their employment relationships. The conducts of the parties indicate that their actual intention is to create and sustain an oral contract of employment.
“Awarding any money to the Claimants as a result of the Defendant’s refusal and or neglect to enter a written contract is tantamount to interfering with the commercial freedom of individuals to determine their own agreement, a situation that is frowned upon by the law.
“Hence, I find and hold that there was a valid contract of employment between each of the Claimants and the Defendant company. Their individual verbal contracts of employment were enforceable by either party and so the failure or refusal of the Defendant to issue any written letters of employment is inconsequential and immaterial.
“In the instant case, the individual termination of the Claimants’ employments was as a result of the completion of the Defendant’s project at Onne, as such all the legal implications attached to the principle of redundancy must apply.
The court ordered defendant to pay claimants One month’s salary in lieu of notice i.e. N45,000 to the 1st Claimant and N39,000 to the 2ndClaimant, sum of N292,500 and N178,750 as their redundancy allowances for their individual employment terms with the Defendant company.
Lastly, His Lordship ordered defendant to pay the sum of N500,000.00 only as cost of maintaining this action, N500,000 as general damages to the Claimants. All payment to be paid within 14 days.
