By Desire Emmanuel
A National Industrial Court has ordered a company to pay damages to an ex-worker for withholding his terminal benefits and other entitlements after leaving the organisation.
Justice Bashir Alkali of the Kaduna division of the court ordered the International Tobacco Company to pay its former employee, Mr Taofeek Lawal, the sum of N4.5 million for 627 days out-of-station and N454,000 as terminal benefits.
Justice Alkali further directed International Tobacco Company to pay Mr Lawal the sum of N1 million as general damages for withholding what were due to him.
The court declared the company’s failure to promptly pay Mr Lawal his terminal benefits from October 17, 2022, when he submitted all the company properties in his possession a breach of the Service Agreement.
According to court documents, Mr Lawal submitted that he was employed by International Tobacco Company and directed by the Zonal Manager to report to Kaduna in November 2019 on an out-of-station assignment pending confirmation of his permanent posting.
He added that despite repeated verbal and written requests for clarification and formalisation of his transfer, the company failed to respond and issued a backdated transfer letter.
In its defence however, the company argued that there was no bad faith whatsoever in backdating Mr Lawal’s transfer letter, as the letter was merely to formalise events that had taken place, and further that Mr Lawal was not entitled to an out-of-station allowance as he was transferred to Kaduna permanently.
The company further averred that Mr Lawal was transferred in November 2019, and it is a known fact that the formalisation letter dates back to November 2019, which was the effective date of Mr Lawal’s transfer to Kaduna, and urged the court to dismiss the case.
But counsel to Mr Lawal contended that the company’s backdated transfer letter could not defeat his entitlement and that the silence of the company on repeated inquiries amounted to an admission of the out-of-station assignment.
The counsel told the court that throughout his client’s work in Kaduna State between November 5, 2019 and November 5, 2021, the company never communicated to him that he was transferred and refused to respond to his several requests for a formal instruction from the firm.
The counsel further submitted that the evidence of his client on the out-of-station allowance was unchallenged and credible, and that withholding terminal benefits based on an undisclosed internal policy was an act of bad faith.
Delivering judgment, the judge found that Mr Lawal was entitled to out-of-station allowance for 627 workdays from November 2019 to November 2021 and that the failure of International Tobacco Company to promptly pay his terminal benefits constituted a breach of the service agreement.
Justice Alkali held that the company’s backdated transfer letter could not negate the entitlement of Mr Lawal and that the deliberate withholding of entitlements caused Mr Lawal hardship.
However, the judge refused Mr Lawal’s claims for N150,000 resettlement grant and N85,000 transportation costs, holding that the claims were not supported by pleadings, evidence, or any contractual provision.
The judge therefore ordered compliance with the judgment within 30 days, without prejudice to the right of appeal by the parties.
