Media
- Home
- Details
Owerri – His Lordship, Hon. Ibrahim Galadima of the National Industrial Court of Nigeria, sitting in Owerri, Imo state, on Tuesday 19th March 2019 in a judgment declared employment termination of JOHN FRIDAY GEORGE AKE (claimant) as wrongful, awarded the sum of N5,200,000 punitive damages against MAC-CANON INDUSTRIES LTD and another (defendant), and payment of N200,000.00 being the Claimant’s one month’s salary in lieu of notice, Annual Leave allowances for the years 2015 and 2016, and Pension contribution from September 2014 to December 2016 within 30 days.
The court expressed impossibility of the Court to order the reinstatement of the Claimant to the position he occupied prior the institution of this cause that Master retains the right to hire and fire at will and such power cannot be impugned upon.”
By a general writ of Complaint filed on the 27/3/2017, the Claimant sought against Defendants among others; A declaration that the Claimant’s contract of employment with the Defendants still subsists. An order directing the Defendants to pay the Claimant, all his salaries, allowances, and benefits until the judgment is delivered and to further pay to the Claimant his severance benefits and one-month salary in lieu of notice of termination of employment.
Likewise, An order mandating the Defendants to forthwith pay to the Claimant the sum of N20,211,846.90 (Twenty Million, Two Hundred and Eleven Thousand, Eight Hundred and Forty-Six Naira, Ninety Kobo) as special damages covering arrears of all outstanding salaries, allowances, benefits and entitlements accrued to the Claimant in the circumstances of his contract of employment with the Defendants.
A summary of the Claimant’s case is that he is still an employee of the Defendants as his contract of employment was never determined to date. That prior to January 2017, the Defendants owed him certain arrears of salaries, benefits, and allowances. The Defendants are accordingly indebted to him in special damages to a tune of N20,211,846.90 as particularized in the Statement of Facts.
It was contended that he was estranged from the Defendants due to his discovery of certain financial irregularities in the Company’s records pointing to mismanagement and misappropriation by the management of the 1st Defendant Company. The Claimant believes the Defendants still carry on operations as business concerns to date.
The Defendants countered by stating that the Claimant’s employment stopped because of the cessation of operations by the 1st Defendant Company. The Defendants are not accordingly indebted to the Claimant and denied any financial misappropriation as alleged by the Claimant.
In addressing the Court, the Claimant isolated a sole issue for determination whether the Claimant has proved his claims on a preponderance of evidence to entitle him to the judgment of this Court.
It was further argued that no contrary evidence from the Defendants to suggest that the Claimant’s employment was terminated that the employment of one staff by the Defendants to take over the Claimant’s position in the Company and subsequently barring him (the Claimant) from access to the Company’s premises, does not amount to a determination of the Claimant’s contract of employment either under the extant labour law or by the terms and conditions of the Claimant’s employment.
Learned Counsel also wants this Court to refuse to believe the Defendants’ assertion that the 1st Defendant no longer operates the business.
In the light of the above-canvassed arguments, learned Counsel urged this Court to grant the Claimant’s first relief and declare that he is still under the employment of the Defendants to date.
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 expressed thus;
“It is obvious that the Defendants have indeed failed in complying with item 9 of the said LETTER OF EMPLOYMENT. As such, this Court is satisfied that the Defendants have breached the terms of the contract of employment of 2/8/2014 with the Claimant. The Defendants’ action in the manner the Claimant was treated is indeed wrongful and unfair.
“Consequently, it is impossible for this Court to order the reinstatement of the Claimant to the position he occupied prior the institution of this cause. This is so in view of the fact that a Master retains the right to hire and fire at will and such power cannot be impugned upon.”
The court awarded against the defendant the sum of N5,200,000 being punitive damages for the wrongful and unfair termination of the Claimant, and the sum of N200,000.00 being the Claimant’s one month’s salary in lieu of notice.
His Lordship also ordered payment of Annual Leave allowances for the years 2015 and 2016 @ 15% of annual salary equaling N720,000.00, Pension contribution (from September 2014 to December 2016 equaling N420.000.00 and of N750,000.00 being the cost of this action within 30 days.
