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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 Validates Employment Termination, Orders Access Bank To Pay Ex-Staff Ugochukwu Nwankwo N4.5 Million Severance Allowance Within 30 Days


1113 Thursday 28th February 2019

 

Enugu –His Lordship, Hon. Justice I. J. Essien of the National Industrial Court of Nigeria, Portharcourt, sitting in Enugu Judicial Division on Tuesday 26th February 2019 in a judgment ordered Access Bank Plc (defendant) to pay Ugochukwu Nwankwo Obumneme (claimant) the sum of Four Million, Five Hundred Thousand Naira being the balance of N 4,500.000 (four million five hundred thousand naira)  severance monetary benefit in accordance with the binding conditions of service within 30 days.

 

The claimant by a complaint filed on the 16/3/2017 sought against the defendant  among others; A DECLARATION that the claimant is entitled to the immediate release and payment of the sum of #4,500,000.00 (four million five hundred thousand naira) being the balance of the claimant’s full severance allowance found due to him as stated in his said termination letter.

 

AN ORDER setting aside the defendant’s letter dated 2ndJanuary, 2012 purporting to TERMINATE the claimant appointment when in fact the said claimant was merely relieved of his appointment in accordance with the wishes of the defendant’s Bank and with no taint of any misconduct whatsoever.

 

The Claimant was a staff of the Inter-continental Bank PLC which was acquired by Access Bank Nigeria PLC. Prior to the restructuring arrangement, the claimant had put in 7 (seven) years’ service or more. The claimant alleged that he was entitled to the sum of N 4, 500,000 under the Inter-continental bank gratuity scheme fixed and managed by Crusader Sterling Limited, which was due and payable as at 2012. The claimant alleged that the gratuity package is different from and does not operate as an alternative to  any withdrawal/disengagement or severance package he may be entitled to when leaving the services of Access Bank PLC.

 

Upon the claimant employment being terminated by the defendant, the defendant paid to the claimant the sum of N1,185,000.00 leaving the sum of #4,500,000.00 still outstanding hence this suit.

 

The defendant position is that the claimant was entitled to either the gratuity or severance package which ever was higher. That after the payment to the claimant of the sum of #4,718700.00 by Crusader Sterling Limited on the 3rd of February, 2012, the claimant was only entitled to the balance of N1,185,000.00 being the balance of the severance package.

 

Defendant witness testified that the gratuity scheme of Intercontinental bank acquired by the defendant was implemented from 1st November 2005 with a qualifying period of 10 years which was latter reviewed in 2010 to a qualifying period graduated from 5 years of completed service. This he said was implemented from 6/10/2011.

 

He testified further that severance packages are therefore not howsoever available as of right to any employee, does not inure to the employee in any manner or form as an entitlement, but is based entirely on the defendant’s discretion.

 

The defendant also contended that their decision to pay only severance package or gratuity was the outcome of a negotiation with the Association of Senior Staff of Banks Insurance and Financial Institutions (ASSBIFI) before the downsizing.

 

After careful evaluation of all the submissions and processes filed, the presiding Judge, Hon. Justice Isaac Essien expressed thus;

 

“The defendant failed to discharge the evidential burden placed on him to show how and in what form the agreement to pay severance or gratuity was arrived at. No memorandum or agreement was placed before this court to establish this fact.

 

“...there is no provision in the defendant policy handbook 2008, tendered to justify that a staff who had earned gratuity in intercontinental bank before the acquisition by the defendant is not entitled to severance package upon the termination of his appointment as a result of the merger/acquisition of his former establishment by the defendant.

 

“The reason given by the defendant for the termination of the claimant employment with the defendant is not without some consequences.  This is so because this has prevented the claimant from continuing in the employment up to retirement and therefore be entitled to his full gratuity and other retirement benefits.

 

“Such policy to my mind even if it exist cannot be brought to the attention of a staff on the date of his exit from the defendant. This state of fact throws a serious doubt on the case of the defendant and renders it unbelievable.

 

With this state of evidence, this court is unable to believe the defendant that the claimant was only entitled to severance package and not the gratuity fund already earned by the claimant while working for Inter-continental Bank before the merger/acquisition."

 

On the strength of the above adumbrations, the court declared that claimant is entitled to the immediate release and payment of the sum of N 4,500,000.00 (four million five hundred thousand naira) being the balance of the claimant’s full severance allowance found due to him as stated in his termination letter, ordered defendant to pay the balance of N 4,500.000 (four million five hundred thousand naira) being claimant’s severance monetary benefit in accordance with the binding conditions of service between them which was wrongly withheld by the defendant within 30 days.

 

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