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Owerri – The Presiding Judge, National Industrial Court of Nigeria, Owerri Judicial division, His Lordship, Hon. Justice Ibrahim Galadima on Tuesday 19th March 2019 in a judgment declared the employment termination of MR RAYMOND ASIEGBU EZEH (Claimant) as wrongful, not in accordance with the claimant contract of employment. The court Ordered PORT HARCOURT ELECTRICITY DISTRIBUTION COMPANY (defendants) to pay claimant sum of N98,932.35 as one month basic salary in lieu of notice, sum of N1,187,188 as damages and the sum of N500,000.00 being the cost of action within 14 days.
In summary, the Claimant on the 4th of August, 2017 sought against defendant among others; A declaration that the termination/disengagement of the Claimant from the employment of the Defendant was wrongful and contrary to the Defendant’s rules and regulations and provisions of the employee handbook.
An order of the court compelling the Defendant to reabsorb the Claimant into the employment and to pay him this salary and entitlement from the month of September 2016 till date.
Or alternatively, An order of the court compelling the Defendant to pay to the Claimant the sum of N10,000,000(ten million naira) for the wrongful termination, An order of the court compelling the Defendant to pay the Claimant the sum of N383,655.50 being amount due as the Claimant’s unutilized leave to cash for the years 2014 and 2015.
The Defendant’s Counsel proposed for determination whether the employment of the Claimant was not rightfully terminated in line with the terms of contract of employment?
The Claimant employment was confirmed in December 2014. During the employment, the Defendant wrote a letter of recommendation on the Claimant’s behalf to Skye Bank undertaking to domicile his salary account order to back up the personal term loan based on the value of the Claimant’s monthly salary.
On 9/9/2016, the Claimant was disengaged from the Defendant’s employment, the Claimant believes that his disengagement was wrongful and that the Defendant is liable to pay certain unpaid allowances and the outstanding balance on his loan from Skye Bank.
Defense Counsel argued that the contract for the loan was strictly between the Claimant and Skye Bank, and a stranger such as a Defendant in the instant case cannot sue or be sued for obligations arising there from it not being privy to the contract.
In counsel to the claimant opinion, the failure to give the Claimant an opportunity to explain himself before terminating his employment is a denial of fair hearing and makes the disengagement wrongful.
After careful analysis of all the processes filed, and the submissions of the learned Counsel from both sides. The Court presided by Hon. Justice Ibrahim Galadima held that the Defendant is not personally liable to repay any outstanding balance of the loan granted by Skye Bank to the Claimant contrary to the latter’s assertion.
“Thus, in the case at hand the Defendant Electricity Company having terminated the Claimant’s employment without giving him the required notice, failed to pay him at the time of the termination, his salary in lieu of requisite notice of disengagement.
“Therefore, I find that the disengagement of the Claimant on the 9/9/2016 is wrongful as it was not done in compliance with the contract of employment stipulated in the employment letter."
The court Ordered Defendant to pay claimant sum of N98,932.35 as one month basic salary in lieu of notice, the sum of N1,187,188 to the Claimant as damages for wrongful termination of the Claimant’s employment and the sum of N500,000.00 being the cost of maintaining this suit within 14 days.
His Lordship declined reliefs for the various sums of N383,655.50 and N315,000 purportedly being amounts due as the unutilized leave and relocation allowances for lacking merit.
