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Litigation

Company refuses to pay ex-worker’s benefits 24 years after retirement, court orders it to pay N10m as ‘punitive damages’

Desire Emmanuel
Last updated: September 15, 2026 2:21 pm
Desire Emmanuel
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Justice Nelson Ogbuanya of the National Industrial Court has awarded the sum of N12.67 million against Golden Guinea Breweries Plc for withholding the terminal benefits of a former employee 24 years after his retirement.

Justice Ogbuanya of the Owerri Division of the court ordered the company to pay the ex-worker, Mr Chikezie Uwakwe, N672,535.69, being his unpaid end-of-service benefits, as well as N10 million in punitive damages and N1 million as costs of litigation.

The court further ordered that the money be paid within two months of the company receiving the judgment.

According to available court documents, Mr Uwakwe approached the court seeking the recovery of his terminal benefits, which, according to the evidence before the court, had been computed and approved by the company shortly after his retirement in 2002.

Uwakwe also sought N25 million as general, exemplary and aggravated damages for what he described as breach of contract and unfair labour practices arising from the prolonged withholding of his entitlements.

He told the court that he was employed by Golden Guinea Breweries in April 1977 and retired in June 2002 after approximately 25 years of service. At the time of his retirement, the company allegedly computed his end-of-service benefits at N672,535.69.

However, despite the computation and repeated demands, the company failed to pay the money. Uwakwe subsequently instructed his solicitors to demand payment. His lawyers wrote to the company on May 11, 2021, seeking the release of the outstanding benefits.

In a reply dated June 1, 2021, the company’s solicitors reportedly attributed the delay to operational challenges. The court noted that the reply did not deny the debt owed to the former employee.

However, Golden Guinea Breweries Plc did not file a formal appearance or any defence process challenging the claimant’s case during the period of the court case.

Delivering judgment, Justice Ogbuanya held that the ex-worker had established his entitlement to the unpaid benefits and had also proved the amount claimed.

Justice Ogbuanya also noted that the claimant’s evidence was not challenged under cross-examination and was not contradicted by any defence evidence, and that unchallenged evidence may be accepted and acted upon where it is credible and admissible.

The judge consequently entered judgment in favour of Uwakwe.

 

 

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