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The court has exclusive jurisdiction in civil causes and matters relating to or connected with any labour, employment, trade unions, industrial relations and matters arising from workplace, the conditions of service, including health, safety, welfare of labour, employee, worker and matter incidental thereto or connected therewith.

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Industrial Court Declares Forceful Resignation of Samson Iyanda As Unlawful, Orders Ex-Staff To Pay First Bank N10 Million UnPaid Loan Facility


998 Tuesday 29th January 2019

 

Lagos – His Lordship, Hon. Justice B. B. Kanyip of the National Industrial Court of Nigeria, sitting in Lagos, on Monday 28th January 2019 in a judgment declared the action of First Bank of Nigeria Ltd (defendant) in forcing and/or compelling Mr Samson Iyanda (claimant) early retirement dated 16th October 2015, which the defendant refused to honour, amounts to unfair labour practice, unfair and unlawful. The Court ordered Mr Samson Iyanda to pay First Bank of Nigeria Ltd within 30 days the sum of N4,308,826.19  being the subtraction of the sum of N6,416,924.04 for his early retirement benefit from the sum of N10,725,750.23 loan facility extended to him.

 

By the complaint and statement of facts, the claimant sought against the defendant among others; A declaration that the action of the defendant in forcing and/or compelling the claimant to write an early retirement letter dated 16th October 2015 which the defendant refused to honour amounts to unfair labour practice and it is therefore unfair, illegal and unconstitutional.

 

A declaration that the defendant cannot convert the claimant’s welfare loan to a commercial loan and run at the prevailing commercial interest while the claimant is still challenging the wrongful rejection of his early retirement.

 

Likewise, An order directing the defendant to pay the sum of N23,229,007.00 being the outstanding amount due and payable to the claimant by the defendant upon the claimant’s early retirement age which amount the defendant has refused and/or neglected to pay despite repeated demands.

 

The sum of N500,000,000.00 (Five Hundred Million Naira) for the impairment of the claimant’s health as damages suffered as a result of the claimant’s employment with the defendant, which further aggravated as a result of forcing the claimant to write his letter of retirement when he had no intention of doing so.

 

The claimant was an employee of the defendant and was posted to Budget and Performance Department then later posted to Banque International De Credit (BIC) DRC in Congo as the Head of Finance on November 27, 2012. While the claimant was in Congo, he was recalled back to Nigeria and reported to HCMD on Monday July 20, 2015 where he was informed verbally that the Management had directed that he should go on early retirement. Thereafter, he reported to his direct supervisor who in turn informed him to source for another department to absorb him or take the option of early retirement.

 

Based on this, the claimant sourced for and got another offer at the North Directorate of the defendant and the Director instructed the HCMD to process the claimants’ transfer, which the HCMD refused. While expecting his letter of transfer to the New Department, he got an unexpected call asking him to report on 16th October 2015 at the HCMD. On getting to the office on 16th October 2015, the claimant was compelled under duress to tender an early retirement letter immediately.

 

That he is jobless and over 50 years and has no prospect of getting another job. As a result of his forceful written letter of early retirement, he has suffered psychological and unimaginable trauma, hardship and mystery.

 

The defendant counterclaimed for the Judgment in the sum of N10,725,750.23 owed to the Claimant by the Defendant with respect to the loan facility extended to him.

 

In response, the claimant filed a reply and defence to counterclaim and additional written statement on oath of the claimant, both dated 20th March 2017.

 

The defendant’s case is that the claimant was never compelled under duress to tender an early retirement letter, that any member of its staff can exit its services regardless of age or years of service, at any time provided it is in line with approved policy.

 

That the claimant has defaulted in the repayment of his loan to the defendant and the said claimant has been notified of his indebtedness, and the fact that the same would be converted to a commercial loan running at the prevailing commercial interest rate. That as at 9th November 2015, the claimant owed the sum of N10,725,750.23 (Ten Million and Fifty Naira and Twenty-Three Kobo, sic) on the loan.

 

The claimant has not shown in real terms how he was coerced. He neither pleaded nor placed evidence before the Court the kind of threat he was under that made it inevitable for him to rersign.

 

The claimant’s defence to the counterclaim was that the loan contract is not separate from the contract of employment and that repayment of the loan is tied to his salary, and not from any other source. That the claimant did not default in his loan repayment, but that his compulsion to take early retirement frustrated the loan repayment and therefore cannot be expected by the Counter Claimant to continue to grow on interest application.

 

The claimant urged the Court to hold that he was forced and compelled to write his letter of early retirement dated 16th October 2015 against his wish and having done that, the defendant ought to have paid him all his early retirement benefits.

 

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

“In the instant case, I find and hold that the evidence of the claimant that he was asked by the named officers of the defendant to proceed on early retirement has not been controverted by the defendant given that none of the dramatis personae was called as a witness to controvert the claimant’s evidence. The claimant’s evidence outweighs that of the defendant in this regard and so I accordingly find and hold for the claimant in that regard.

 

“The fact that the loan was granted at 5% interest rate per annum and the fact that the submission of the defendant that the loan would be converted to a commercial loan, at the commercial interest rate, implies that the loan itself was a staff welfare loan (an employment loan), not a commercial/consumer loan, when it was granted the claimant. I so find and hold.”

 

On claim for damages for the impairment of the claimant’s health as a result of forcing the claimant to write his letter of early retirement when he had no intention of doing so, “The claimant cannot be asking that his early retirement be approved and turn around and be claiming that he be compensated because he thereby had impairment of health.” His Lordship ruled.” His Lordship stated.

 

The court  declared that the action of the defendant in forcing and/or compelling the claimant to write an early retirement letter dated 16th October 2015, which the defendant refused to honour, amounts to unfair labour practice, unfair and unlawful.

 

His Lordship also ordered defendant to forthwith approve and honour the claimant’s early retirement letter dated 16th of October 2015 as compelled by the defendant.

 

Justice Kanyip also ordered defendant to pay the sum of N6,416,924.04  being the outstanding amount due and payable to the claimant by the defendant upon the claimant’s early retirement age.

 

The court also ordered claimant to pay defendant the sum of N10,725,750.23 owed with respect to the loan facility extended to him.

 

Lastly, his Lordship ordered claimant within 30 days to pay defendant the sum of N4,308,826.19  being the subtraction of the sum of N6,416,924.04 for his early retirement benefit from the sum of N10,725,750.23 loan facility extended to him.

 

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