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  • Industrial Court [Flash] Industrial Court orders Notore Chemicals Industries to pay ex-employee N20.5 Million Gratuity claim

    [Flash] Industrial Court orders Notore Chemicals Industries to pay ex-employee N20.5 Million Gratuity claim

     

    His Lordship, Hon. Justice Nelson Ogbuanya of the National Industrial Court sitting in Lagos has ordered Notore Chemicals Industries plc to pay Mr. Ayodele Balogun the sum of Twenty million, Five Hundred and Twenty-Five Thousand, Nine Hundred and Ninety Nine Naira, Sixty Kobo only as   outstanding balance of his gratuity payment due to him since 2013, and N1, 000,000.00 (one million naira) cost of action within one month, failing which it attracts 10% interest rate per annum until fully liquidated. 

     

    The court held that the company action credited to external advice which prompted the defence of ‘mistaken payment’ was not justified, and cannot override the obligation to pay outstanding balance due to the claimant.

     

    From facts, the Claimant- Ayodele was employed on 1st October 2008 as Chief Marketing Officer, that by a letter dated June 14, 2013, sent via e-mail on Wednesday June 19, 2013 he tendered resignation, and indicated that it would take effect on 1st October 2013, that as a result of his service to the firm spanning 5 years, that he has become entitled to payment of gratuity upon successful exit from the Company that a total settlement package was communicated to him via e-mail out of which only 50% was paid and all effort to get balance proved abortive.

     

    In argument, the firm submitted that Ayodele did not attain the threshold of ‘continuous service greater than 5 years and up to 10 years’ to be qualified for monetary payment in addition to ‘Testimonial of Service’, which is the only package available for those who were in ‘continuous service up to 5 years’, under the company gratuity that the payment already paid to the Claimant was a mistake and it was because of the discovery of the error that the Defendant refused to pay the balance and also seeks refund of it.

     

    Counsel to the firm further argued that the Claimant’s resignation becomes effective on date of receipt of the letter of resignation by the employer, and as such, the correct effective date of the Claimant’s resignation is June 14 2013 (submission date), and not the 1st October 2008 contained in the resignation letter that the Claimant’s case lacks merit and should be dismissed while upholding the counter-claim for refund of the sum already paid to the Claimant in error. 

     

    Counsel to the claimant U. U Njoku, Esq contended that the Defendant failed to tender its payroll to disprove that the Claimant was no longer in its pay roll as at 1 October 2013 urged the court to so hold and grant the reliefs sought.

     

    Delivering Judgment after careful evaluation of the submissions of both counsel and the processes filed, the presiding Judge, Justice Ogbuanya held that where date is not provided in the resignation, it takes immediate effect upon receipt of resignation, but when effective date is provided, it becomes effective on the last day of the notice period. 

     

    “I also note that it is part of the court’s equitable jurisdiction to preserve earned benefits, particularly those of pecuniary nature, and court usually tilts towards resolving such emerging controversy in favour of the beneficiary rather than in favour of one trying to take away or expropriate the benefit.

     

    “From the tenor of the above provisions of the company Gratuity Policy, I find that once an employee attains 5 years of continuous service with the Defendant, such an employee shall/must be entitled to not only cash payment as gratuity but also other testimonials and certificate of appreciation and or asset gift.  

     

    “In the circumstance of the Claimant, I find that he has attained 5 years of continuous service with the Defendant and there was no evidence disputing that he resigned willfully and there was no evidence of any skirmish of probe or low performance tainting his voluntary resignation. I so hold.” Justice Ogbuanya ruled.

     

    In all, the Court dismissed the counter-claim for lacking merit.

     

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