By Desire Emmanuel
A National Industrial Court has declared the termination of employment of a staff member with Chi Limited wrongful and in breach of the contract of employment, saying the company didn’t give a 30-day notice or one month payment in lieu.
Justice Sanda Yelwa of the Lagos division of the court gave the judgment on Monday, as he also awarded the staff member, Mr. Tunde Bodunrin, the sum of N2 million as general damages for wrongful termination and N200,000 as costs of action.
The court however ordered Mr. Bodunrin to return the company’s properties in his possession or pay their assessed market value.
Justice Yelwa held that where parties have put the terms of employment into writing, they are bound by those terms, and any termination must comply strictly with the provisions of the contract of employment and the Employee Handbook.
According to court documents, Mr. Bodunrin argued that the allegation of misconduct against him was unfounded and not established, as he also maintained that the disciplinary committee proceedings were prejudicial and the termination of his employment was without justifiable cause and without compliance with the agreed terms of his employment.
He added that the alleged breaches were not proved and that the termination letter took immediate effect without the requisite 30 days’ notice or payment in lieu of notice as stipulated in the letter of appointment and the Employee Handbook.
He urged the court to hold that the termination was wrongful and to grant the reliefs sought.
Chi Limited on the other hand told the court that it had the right to terminate the employment of Mr. Bodunrin and that the termination was lawful and in accordance with the contract of employment and the Code of Conduct.
Giving judgment, Justice Yelwa held that although an employer has the right to discipline its employee, but where reasons are given for termination, such reasons must be established to the satisfaction of the court.
He added that he was not convinced that the alleged breaches of the Code of Conduct were satisfactorily proved against Mr. Bodunrin.
Justice Yelwa found that the contract agreement between both parties clearly required either party to give 30 days’ notice or payment in lieu of notice after confirmation of appointment, and there was no evidence before the court that Mr. Bodunrin was given the required notice or paid salary in lieu of notice.
The judge held that failure to comply with this fundamental term amounted to a breach of the contract of employment, thereby rendering the termination of his employment wrongful.
The judge however declined the relief sought by Bodunrin, including the withdrawal of the termination letter and the claim for payment of salaries and allowances from December 2022 to date, holding that such claims were in the nature of special damages, which must be specifically pleaded and strictly proved.
