IN THE NATIONAL INDUSTRIAL COURT OF NIGERIA
IN THE LAGOS JUDICIAL DIVISION
HOLDEN AT LAGOS
BEFORE HIS LORDSHIP, HON. JUSTICE IKECHI GERALD
NWENEKA
Date:
21st January 2025 SUIT NO. NICN/LA/290/2020
BETWEEN
MS BINTA OLUWATOSIN ADEJOH … CLAIMANT
AND
ARIK AIR LIMITED [IN RECEIVERSHIP] … DEFENDANT
JUDGMENT
1. The Claimant commenced this suit on 21st
August 2020 and sought the following reliefs:
a. A declaration by this
Honourable Court that by the Leave of Absence Form dated 3/01/19 which was
approved by the Defendant through its three [3] principal officers i.e. the
Claimant’s Supervisor, the Head of the Claimant’s Department and the Human
Resources Manager, which the approval contained in the aforesaid Leave of
Absence Form governed the Claimant’s leave of absence, the Claimant’s
employment with the Defendant still subsists.
b. An order of this
Honourable Court directing the Defendant to pay the Claimant’s salary and other
emoluments which were unjustly withheld from the Claimant before and/or after
the approval of the Claimant’s application for leave of absence, the annual
gross income being N1,824,000.00 [one
million, eight hundred and twenty four thousand naira] per annum from 01/01/2019, including but not limited to the sum
of N388,783.96 [three hundred and
eighty-eight thousand, seven hundred and eighty-three naira and ninety-six kobo]
being the difference of the irregular remittance by the Defendant to the
Claimant’s Pension Account with Number PEN200692325117 maintained with Leadway
Pensure PFA Limited from December 2014 till date with interest at the rate of 27%
per annum till judgment is delivered and thereafter at the rate of 10% per
annum until the entire sum is liquidated.
c. A declaration by this
Honourable Court that by virtue of the letter of appointment dated 12/11/13,
the Claimant’s Pension Account Number PEN200692325117 maintained with Leadway
Pensure must be credited with 15% [inclusive of the Defendant’s contribution]
of the Claimant’s basic salary, housing allowance and transport allowance from
12/11/13 till date.
d. A declaration by this
Honourable Court that the sum of N412,754.54
[four hundred and twelve thousand, seven hundred and fifty-four naira and
fifty-four kobo] paid into the Claimant’s Pension Account Number
PEN200692325117 maintained with Leadway Pensure Limited is grossly inadequate
of the pension contribution earned by the Claimant from 12/11/13 till date.
e. An order of this
Honourable Court directing the Defendant to pay the sum of N388,783.96 [three hundred and eighty-eight thousand, seven hundred
and eighty-three naira and ninety-six kobo] representing the deficit of the
remittance by the Defendant to the Claimant’s Pension Account Number
PEN200692325117 maintained with Leadway Pensure PFA Limited.
f. A declaration by this
Honourable Court that the act of the Defendant refusing or failing to credit
the Claimant’s Pension Account Number PEN200692325117 maintained with Leadway
Pensure Limited accurately and appropriately is oppressive, wrongful and a
violation of the Claimant’s right as protected and preserved by the Pension
Reforms Act.
g. Damages in the sum of N5,000,000.00 [five million naira] for
failure of the Defendant to pay the adequate and appropriate pension earned by
the Claimant to the Claimant’s Pension Account Number PEN200692325117
maintained with Leadway Pensure Limited.
h. An order of this
Honourable Court directing the Defendant to restore all the paraphernalia of
office such as the Operation Post, Identity Card, Uniform, Official phone, HMO
card, etc., to the Claimant to enable her perform and carry out her duties.
i. An order of this
Honourable Court directing the Defendant to pay the Claimant’s accrued medical
benefits for the period 28th December 2018 till date which she was assured
under the terms and conditions of her employment or in the alternative [where
no particular amount is stated] to pay the Claimant the sum of N1,800,000.00 [one million and eight
hundred thousand naira] as her medical bill for the period stated.
j. A declaration that the act
of the Defendant of keeping the Claimant’s employment in abeyance is in breach
of her right to dignity of human person as enshrined in Section 34 of the
Constitution of the Federal Republic of Nigeria, 1999 [as amended].
k. An order of this
Honourable Court directing the Defendant to pay the sum of N5,000,000.00 [five million naira] to the Claimant for infringement
on the Claimant’s right to dignity of human person, and for the psychological
trauma caused the Claimant, a nursing mother.
l. An order of this
Honourable Court directing the Defendant to pay the sum of N10, 000,000.00 [ten million naira] to the Claimant as damages for
breach of the Claimant’s terms and conditions of employment, violation of the
Labour Act, misrepresentation of facts and for loss of use of the Claimant’s
outstanding remunerations and benefits.
Alternatively, to reliefs [a], [h], [i], and [j]
m. A declaration that the
Defendant’s letter dated 7/01/19 amounts to a wrongful termination of the
Claimant’s employment.
n. Damages in the sum of N30,000,000.00 [thirty million naira] for
wrongful termination of the Claimant’s employment by the Defendant.
and
o. Cost of this suit in the
sum of N650,000.00 [six hundred and
fifty thousand naira] only.
p. Interest of 15% per annum
on the total judgment sums from 01/01/2019 until liquidation of the entire sum
by the Defendant.
2. The Defendant entered an appearance and
filed a statement of defence, accompanying processes, and a motion on notice to
regularize the processes on 15th September 2020 to which the Claimant replied on
2nd November 2020. The defence processes were deemed properly filed and served
on 27th January 2021. The trial commenced and was concluded on 23rd February
2022. The Claimant’s two witnesses testified in support of her claims and were
cross-examined. The Claimant was re-examined. The Defendant’s witness and Human
Resources Manager, Mr. Peter Ogunsanmi, testified and was cross-examined and
re-examined. Parties exchanged the final written addresses which their counsel
adopted on 5th December 2024 and the matter was set down for judgment.
Brief facts of the
case
3. The facts as stated by the Claimant are
that the Claimant was Defendant’s employee. She applied for and was granted a leave
of absence on health grounds. By letter dated 7th January 2019, the Defendant
informed the Claimant that she would not be entitled to any benefits during the
period and directed her to return the Defendant’s properties in her possession.
However, due to her health challenge, she could not protest the letter but
complied with the directive and returned all Defendant’s properties in her
custody. While the Claimant’s salary ceased effective January 2019, the
Defendant also notified her HMO that her policy had been terminated despite her
medical condition. The Claimant’s appointment was kept in abeyance without any salary
payment to date. According to the Claimant, she is entitled to 7.5% of her
basic salary, housing and transport allowances, and 7.5% contribution by the
Defendant as pension. Despite deductions from her salary for pensions from
December 2014 to December 2018, the Defendant only remitted N412,754.54 to the Claimant’s Pension
Account Number PEN200692325117 maintained with Leadway Pensure PFA Limited. The
Claimant resumed after the expiration of the leave of absence and observed that
her desk was occupied. When she inquired, the Defendant informed her that she would
be contacted when there is a vacancy. Prompted by the Defendant’s refusal to re-absorb
her, the Claimant sent an email to the Defendant’s Receiver/Manager on 23rd
January 2020 which was not responded to and the Defendant did not resolve the issue,
hence this suit. The Defendant joined issues with the Claimant and urged the
Court to dismiss the suit.
Summary of final written addresses
4. Learned counsel for the Defendant raised one
issue for determination in the final written address dated 31st March 2022 but
filed on 5th April 2022:
Whether the Claimant has
been able to discharge the burden of proof as would entitle her to the reliefs
claimed in the General Form of Complaint and Statement of Facts.
Before arguing the issue,
learned counsel submitted that only the receiver/manager can sue or be sued in
respect of a company in receivership. Consequently, counsel contended that the
proper party is not before the Court rendering the suit improperly constituted
and liable to be struck out. The cases of Dagazau v. Bokir International Ltd
[2011] 14 NWLR [Pt 1267] 261 and Intercontractors Nigeria Ltd v. UAC
[1988] 2 NWLR [Pt 76] 303 were cited in support.
5. Canvassing the sole issue, learned counsel
referred to Exhibits 5 and 9, and argued that the terms of the Claimant’s
employment contract stipulated in Exhibit 9 were modified by Exhibit 5, and
having accepted Exhibit 5 without questions, the Claimant cannot now complain. It
was contended that Exhibit 9 did not provide for leave of absence which is
regulated by Exhibit 5 and binding on the parties. Reliance was placed on BFI
Group Corp v. BPE [2012] 18 NWLR [Pt 1332] 209 among others. Counsel also
argued that in determining the Claimant’s right to payment of any benefits,
recourse must be had to Exhibits 9 and 5 resting on Osakwe v. FCE Asaba
[2010] 10 NWLR [Pt 1323] 387. Counsel submits that in so far as the
burden of proof rests on the Claimant, she should rely on the strength of her
case not on the weakness of the defence, calling in aid the case of Akande
v. Adisa [2012] 15 NWLR [Pt 1324] 538. Counsel also submits that under
current Nigerian law on termination of private employment, the employer must
strictly comply with the termination procedure provided in the contract of
employment and provide a valid and justifiable reason for the termination. Continuing,
counsel noted that this Court has the power under Section 254C[1][f] and [h] of
the 1999 Constitution and Section 7[6] of the National Industrial Court Act,
2006 to apply international best practices in labour, employment, and
industrial relations, and in doing so the Court has adopted the principles
enshrined in article 4 of the ILO Convention No. 158 of 1982 as the applicable
international best practice on termination of employment. Flowing from this,
counsel argued that by Exhibit 5 the Claimant knew that due to the Defendant’s
operational requirements, she may not return to her position after her leave of
absence. Counsel submits that damages are awarded for breach of contract, and argues
that the Claimant has not adduced any credible evidence of the Defendant’s
breach of the employment contract since the appointment of the receiver. It was
also submitted that Section 11[8] of the Labour Act provides statutory approval
to Exhibit 5 which stipulates that the Claimant would not be entitled to any
benefits during her leave of absence, rendering the claim for N30,000,000 damages for wrongful dismissal
untenable. The Court was urged to dismiss the reliefs for terminal benefits
since they are not cognizable under the employment contract or applicable
international labour practices. On the Claimant’s claim for pension, learned counsel
summarised the evidence of the Defendant’s witness, referred to Exhibits D1 and
d2, and argued that the evidence remains unchallenged. The Court was urged to
accept the evidence as true and refuse the claim. The case of Din v. African
Newspaper Ltd [1990] 3 NWLR [139] 392 was cited in support. Relying on Section
393[1] and [2] of the Companies and Allied Matters Act, 2004, and Section 48 of
AMCOM Act, 2010, counsel argued that the receiver/manager has to realise the
assets of the Defendant and use the proceeds to pay the secured creditors. Counsel
also argued that under the Pension Reform Act 2014, an unpaid pension
contribution is a debt owed to the employee by the employer which is an
unsecured debt, and in the event of insufficient assets to meet the claims of
unsecured creditors, the secured creditors will take priority over the
unsecured creditors like the Claimant. Counsel urged the Court to dismiss the
Claimant’s case for lack of proof.
6. Learned counsel for the Claimant also donated
one issue for determination in the final written address dated and filed on 5th
May 2022:
Whether the Claimant is
entitled to the reliefs sought against the Defendant via the General Form of
Complaint and the Statement of Facts both dated 21st August 2020.
Responding to the
preliminary issue raised by the Defendant, learned counsel referred to Section
556[3] of the Companies and Allied Matters Act, 2020 which is impari materia
with Section 393[3] of the Companies and Allied Matters Act, 2004, paragraph 5,
11th Schedule of the Act, and submits that the appointment of a receiver did
not rob the Defendant of its corporate personality noting that the proper
parties are before the Court. It was argued that the onus lies on the party who
asserts a fact to prove it resting on Section 131 of the Evidence Act, 2011.
Counsel submits that where a party who, supposedly should be joined to a suit fails
to join and stands by, he cannot complain of non-joinder, calling in aid the
case of Azubuike v. PDP [2014] 7 NWLR [Pt 1406] 292 at 319. It was also
argued that by Section 556[3] of the Companies and Allied Matters Act, 2020, the
receiver is required to maintain an action in the name of a company under
receivership and not in his name. The Court was urged to hold so. Relying on
Section 556[1] of the Companies and Allied Matters Act, 2020, counsel argued
that the receiver’s power is subject to prior encumbrances which include the Claimant’s
contractual rights. The Court was urged to hold that the Claimant’s claims fall
within the definition of prior encumbrances and are not subject to the
appointment and powers of the receiver. The Court was also urged to shun all
technicalities and determine the Claimant’s case. It was also submitted that
Exhibits D1 and D1A being public documents did not meet the criteria for
admissibility and should be rejected and so marked. Reliance was placed on Sections
87[a], 89[e], 102 and 104 of the Evidence Act, 2011 and the cases of Aregbe
v. Oyinlola [2009] 14 NWLR [Pt 1162] 429 at 472 and Kayili v. Yilbuk
[2015] 7 NWLR [Pt 1457] 26 at 68.
7. Arguing the issue, learned counsel
referred to Sections 131 and 133 of the Evidence Act, 2011, and the cases of Okoye
v. Nwakwo [2003] FWLR 156 at 992 and Chevron [Nig] Ltd v. Omoregha
[2015] 16 NWLR [Pt 1485] 336 and submitted that the onus placed on a party
seeking judgment is to show the existence of facts supporting the reliefs. Counsel
contended that the Claimant had placed sufficient materials before the Court to
entitle her to judgment. On the claim for salary and benefits, learned counsel referred
to Exhibit 9 and argued that there being no justification for withholding the
Claimant’s salary, the Defendant is liable to pay the Claimant N1,824,000.00 from 2019 to date. It was
also argued that Exhibit 5 did not comply with the termination clause in
Exhibit 9 rendering the termination wrongful. Counsel argued further that by
the combined provisions of Sections 9[2], [7], 11[1], [2][d], 54[1], [2], and
[4] of the Labour Act the Claimant, having been in the Defendant’s employment for
more than five years and was granted leave of absence via Exhibit 4, the
Defendant could not terminate the Claimant’s employment as it purported to do
by Exhibit 5. Counsel submits that to terminate the Claimant’s employment
properly, the Defendant must give proper notice in line with Exhibit 9 or
Sections 11 and 54 of the Labour Act, otherwise, the termination is invalid and
wrongful. The unreported case of Bello Ibrahim v. Eco Bank Plc, delivered
on 17th December 2019 was cited in support. Therefore, it was argued that the
Defendant’s assertion that the Claimant’s employment was terminated by Exhibit
5 holds no water since it violates the governing statute. The Court was urged
to hold in the alternative that Exhibit 5 occasioned a wrongful termination of
the Claimant’s employment.
8. Continuing, counsel referred to Exhibit 9
on annual and maternity leave, and argued that the Claimant was entitled to
leave benefits and paid maternity leave at a “normal basic rate of payment”. Counsel
contended that the Defendant’s argument that Exhibit 9 did not provide for
leave of absence is incorrect since the Defendant designed Exhibit 4 which both
parties executed, and the nomenclature used cannot change the fact that what
the Claimant needed and sought from the Defendant was maternity leave going by
Exhibits 1 to 3. Counsel argued that Exhibit 4, not Exhibit 5, can be regarded
as varying Exhibit 9 given that Exhibit 5 is a unilateral act of the Defendant.
Relying on Sections 9[2] and 54[1][c] of the Labour Act, counsel argued that
the Claimant was entitled to her normal pay during her maternity leave, and
urged the Court to hold so. Counsel also argued that the Claimant was entitled
to nursing mother leave, but argued that if the Defendant intended to limit the
maternity and nursing mother leave to 12 weeks, it still had the obligation to
pay the Claimant for 12 weeks. Learned counsel submitted that the Defendant breached
its commitment to the Claimant by withdrawing her medical benefits after
issuing Exhibit 5, and should pay damages to the Claimant. The Court was urged
to hold that the Claimant is entitled to salaries and benefits as claimed. On
pension contribution claims, counsel referred to Exhibit 9 and submitted that
given that the Defendant admitted non-remittance of the Claimant’s pension
contributions and facts admitted require no further proof, the Claimant is
entitled to all her pension claims. The Court was urged to hold so.
9. On the claims for infringement or
unlawful termination, hardship, and misrepresentation, counsel argued that Exhibit
9 provides for maternity leave and other benefits, but there is no provision
for an indefinite waiting without salary upon resumption from leave as couched
in Exhibit 5. Therefore, learned counsel submits that by keeping the Claimant’s
employment in abeyance up till 23 January 2020, the Defendant violated Exhibit
9, breached the Claimant’s right to dignity of her person enshrined in Section
34 of the 1999 Constitution and Sections 9, 11 and 54 of the Labour Act
entitling the Claimant to damages as claimed. Learned counsel referred to Exhibits
6, 7, 8, 17, and 18, and submitted that the Defendant’s prevarication on the
Claimant’s resumption for several months amounted to psychological torture and
degrading treatment of the Claimant entitling her to damages. The case of Rhodes
& Anor v. IGP & Ors [2018] LPELR-44118[CA] was cited in support.
Counsel contended that Exhibit 9 did not require the Claimant to return the
paraphernalia of her office while on leave or that the leave would be without
pay as Exhibit 5 stipulated, and further argued that the abandonment of the
Claimant in her hour of need was unconscionable, and urged the Court to hold so.
Learned counsel submits that Exhibit 5 which purports to disengage the Claimant
runs afoul of Exhibit 9 and offends Sections 11 and 54 of the Labour Act. Relying
on Dilly v. IGP & Ors [2016] LPELR-41452[CA] and Iwununne v.
Egbuchulem & Ors [2016] LPELR-40515[CA], counsel urged the Court to
hold that the Claimant is entitled to damages and resolve the issue in the
Claimant’s favour. In conclusion, learned counsel submits that the Claimant has
proved her claims and is entitled to judgment.
10. Arguing the reply on points of law dated
2nd June 2022 but filed on 8th June 2022, learned counsel for the Defendant submits
that in so far as the receiver/manager was not joined as a party, the suit is
not properly constituted. On Exhibits D1 and D1A, counsel concedes that as a
purely technical matter of law, the documents are inadmissible, but argued that
this Court is empowered by Section 12[2][b] of the National Industrial Act,
2006, to depart from the Evidence Act in the interest of justice. It was also
argued that this Court is obliged by Section 122[2][e] of the Evidence Act,
2011 to take judicial notice of the seals of the Courts of Nigeria, and there
is no suggestion that the documents are not what they purport to be. The Court
was urged to accord the documents appropriate probative value. On the claim for
payment of remuneration and benefits, counsel submits, on the authority of Olatubosun
v. NISER [1988] 1 NSCC Vol. 19, Pt 1, page 1025 at 1047, that an employee
whose contract has been unlawfully terminated cannot claim damages for wages
for services not rendered, but adds that the Claimant would only be entitled to
one month’s salary in lieu assuming without conceding that her employment was
wrongfully terminated. Counsel contended that Section 54 of the Labour Act relates
to a pregnant employee who is likely to be admitted to a medical facility to
deliver her baby, but argued that the provision only allows her to be absent
from work for six weeks before her due date and six weeks after her confinement.
It was also argued that if the Claimant was not disengaged, she would only be
entitled to 50% of her salary for 12 weeks, but the Defendant had no obligation
to pay her medical expenses relying on Section 54[3] of the Labour Act. On the claim
for maternity leave, counsel submitted that there is no basis for the Claimant’s
submission since variation was not pleaded or proved. Learned counsel reiterated
his submission on Exhibit 5 and noted that the period of paid maternity leave
is 12 weeks after the birth of the child. Relying on Section 54[3] of the
Labour Act, learned counsel urged the Court to discountenance the Claimant’s
submissions on the claim for infringement, unlawful termination, hardship, and misrepresentation
as being baseless. It was submitted that the Claimant had a duty to mitigate
her damage calling in aid the case of Osisanya v. Afribank Nig Plc [2007] 6
NWLR [Pt 1031] 565 at 578-579. In conclusion, counsel urged the Court to
dismiss the claims especially the declaratory reliefs which are contingent on
the master-servant relationship resting on Odiase v. Auchi Polytechnic
[1994] 4 NWLR [Pt 546] 477 at 492.
Preliminary issues
Admissibility of Exhibits D1 and
D1A
11. It was argued for the Claimant that Exhibits
D1 and D1A being uncertified secondary evidence of public documents are
inadmissible and should be rejected and so marked. The Defendant argued in
paragraphs 2.2 and 2.3 of the reply address that given that the processes have
the seal of this Court, the Court is bound to take judicial notice of the documents
and accord them probative value or depart from the rules of evidence in the
interest of justice per Section 12[2][b] of the National Industrial Court Act,
2006 and admit them. I have reviewed Exhibits D1 and D1A, and the submissions
by the parties. Indisputably, Exhibits D1 and D1A are public documents by
Section 102[a][iii] of the Evidence Act, 2011. Based on Sections 89[e] and
90[1][c] of the Evidence Act, 2011, only a certified true copy of the documents
is admissible as secondary evidence. See Shell Petroleum Development Company
of Nigeria Limited v.
Nwolu [1991] 3 NWLR [Pt 180] 496 at 505 and Gbadamasi & Ors v. Julius Berger [Nig.] Ltd &
Anor [2021] 5 NWLR [Pt 1770] 419 at 451 – 452. Section 104 of the Evidence Act, 2011 provides
for certification of public documents. Exhibits D1 and D1A are photocopies of
Court processes emanating from this Court and are uncertified. Therefore, they
are ordinarily inadmissible. However, the Defendant urged the Court to take
judicial notice of the documents since they bear the seal of the Court relying
on Section 122[2][e] of the Evidence Act, 2011. By Section 122[1] of the
Evidence Act, 2011, no fact which the Court should take judicial notice of
under the section needs to be proved. In any event, Exhibits D1 and D1A bear
the stamp not the seal of the Court. Consequently, they do not come within the matters
that this Court is required to take judicial notice of. Despite this, I have
looked at the pleadings of the parties, particularly paragraph 6[v] of the
statement of defence and paragraphs 3 and 8 of the reply to the statement of
defence, and observe that the parties did not join issues on the fact of the
suit rendering proof unnecessary. Nonetheless, as rightly argued by the
Defendant, the Court can, in deserving circumstances, depart from the Evidence
Act. I am of the respectful view and I hold so, that this is an appropriate
case to exercise that discretion. Accordingly, I depart from the provisions of
Sections 89[e] and 90[1][c] of the Evidence Act, 2011, and hold that Exhibits
D1 and D1A were properly admitted in evidence. Therefore, the objection is
overruled.
Non-joinder of the Receiver/Manager
12. It was argued for the Defendant that the
non-joinder of the receiver/manager renders the suit improperly constituted and
liable to be struck out. For the Claimant, it was argued that the appointment
of a receiver did not rob the Defendant of its corporate personality. Based on Section
556[3] of the Companies and Allied Matters Act, 2020, and paragraph 5 of the
Eleventh Schedule to the Act, the receiver is required to maintain an action in
the name of a company under receivership and not in his name. It was also argued
that if the presence of the receiver was material, the receiver should have
joined and not stood by while the suit was litigated. The law appears settled
that a company in receivership still retains its legal
personality and can be sued in its name in appropriate cases. The
combined effect of Section 556[3] of the Companies and Allied Matters Act, 2020 and paragraph
5 of the Eleventh Schedule to the Act is that a receiver/manager of the whole
or substantially the whole of the company’s property possesses the power to
bring or defend any action or other legal proceedings in the name and on behalf
of the company. In Intercontractors Nigeria Ltd v. National Provident Fund Management
Board [1988] 2 NWLR [Pt 76] 280 at 293, 294, the Supreme Court laid the controversy to rest. Hon. Justice
Karibi-Whyte, JSC [of blessed memory], who delivered the lead judgment held:
The important fact to be borne in mind is that although the
Receiver/Manager has no title to the assets in the receivership which still
vests in the company, it is only the Receiver/Manager who can bring [an] action
or be sued in respect of the assets, being [an] agent of the company. The
company cannot bring the action. The Receiver/Manager can only bring the action
in the name of the company. The contention of counsel for the Appellants
that Plaintiff/Respondent cannot bring action against the Defendant company for
any claim whatsoever is predicated on the assumption that on the appointment of
a Receiver/Manager, all rights of action by any person against the company
whether or not related to the assets in the receivership become frozen against
all the assets of the company. This as I have pointed out is not the law and
has never been. The company still retains its legal personality and can be
sued in its own name in respect of actions which properly lie.
Since the Receiver/Manager can bring an action
in the company’s name his joinder, in my respectful view, is not necessary. It
is an action against the company and in the company’s name. Moreover, the claim is not against any assets of the company in receivership. Therefore, I hold that the
proper parties are before me and this suit is properly constituted. The
Defendant’s objection is, consequently, overruled.
Issue for determination
13. The issue for determination is whether the
Claimant is entitled to judgment on her claims or any of them.
Burden of proof
14. It is elementary law that he who asserts
must prove. See Sections 131[1], 132, 133[1], and 136[1] of the Evidence Act,
2011, and Larry Curry Limited v. Osho & Ors [2024] 8 NWLR [Pt 1940] 285
at 305. The Claimant must satisfy the Court that she is entitled to
judgment on her claims failing which the case will be dismissed. Also, the
Claimant who seeks declaratory reliefs must establish her entitlement to the
declaration by credible evidence, and will succeed on the strength of her case,
not on the weakness of the defence or admission by the Defendant. See Osho
v. Adeleye & Ors [2024] 8 NWLR [Pt 1941] 431 at 452. In
addition, in resolving employment disputes, the Court will usually refer to the
employment contract and any other stipulations incorporated or deemed to have
been incorporated into the contract. See Jowan & Ors v. Delta Steel
Company Ltd [2013] 1 ACELR 18 at 24. The contract of employment is the
bedrock on which parties to an employment contract found their case, and the
success or failure of the case depends entirely on the terms agreed or deemed
to have been agreed by the parties. See Umera v. Nigerian Railway Corporation
[2022] 10 NWLR [Pt 1838] 349 at 386. Where there are many documents
incorporating the terms and conditions of the employment, the Court will not
look outside those terms in deciding the rights and obligations of the parties.
See Jowan & Ors v. Delta Steel Company Ltd [supra] page 25.
Summary of evidence
15. The Claimant sought 14 reliefs and two
alternative reliefs and called two witnesses. The first witness and husband,
Mr. Adewunmi Samuel Olaoluwa, testified in support of the claims and tendered 8
documents marked Exhibits 1 to 8. The Claimant testified as a second witness and
tendered 14 documents marked Exhibits 9 to 22. The exhibits are Prince and
Princess Hospital letter dated 14/11/2018, Veta Hospital’s letter dated 20/12/2018,
Veta Hospital’s excuse duty form dated 28/12/2018, Arik Air leave of absence
form, Arik Air letter dated 7/1/2019, Veta Hospital’s letter dated 29/5/2019, Prince
and Princess Hospital’s letter dated 3/9/2019, the Claimant’s letter dated
5/9/2019, the Claimant’s employment letter dated 12/11/2013, confirmation
letter dated 19/12/2014, copy of staff identity card, promotion letter to a
ticketing and reservation officer dated 2/7/2015, Grade harmonization letter dated
21/8/2017, Grade structure letter dated 22/1/2018, Page International Financial
Services Limited loan offer letter dated 18/1/2019, the Claimant’s Fidelity
Bank Plc statement of account from 13/6/2016 to 29/7/2021, the Claimant’s email
of 23/1/2020 to the Defendant, print-out of the Claimant’s SMS to Madam Chika
Opara, the Claimant’s retirement savings account statement, two certificates of
authentication dated 23/10/2021, M.A. Oduwole & Co.’s letter dated
30/6/2020 to the Defendant for reinstatement of the Claimant and the Defendant’s
response dated 3/7/2020.
16. The first Claimant’s witness and her
spouse, Mr. Adewunmi Samuel Olaoluwa, testified that in
November 2018, the Claimant was admitted to the Prince & Princesses
Hospitals upon the discovery that she was pregnant. Before then, the Claimant
suffered complications and lost a pregnancy due to work-related stress. Based
on the Claimant’s medical history, the hospital advised that she should be
placed on one week’s bed rest to ensure the safety of her life and that of the
unborn child. The Defendant and the Health Management Organization [HMO],
CLEARLINE, were notified and Clearline contacted the hospital. When the
Claimant’s condition did not improve, they were advised to change their hospital
and on 18/12/2018 they moved to Veta Hospitals Limited, and the Claimant notified
the Defendant and the HMO, and they contacted the new hospital. A few days
later the Claimant was discharged and placed on one week of strict bed rest and
the Defendant was promptly notified by Veta Hospitals Limited letter dated 20th
December 2018 which he delivered to the Defendant’s Human Resources Manager on
28th December 2018 at about 10 am. About a week after the Claimant was placed
on bed rest by the hospital, she was informed that she was in no physical or
mental condition to resume work and that she would likely suffer a miscarriage
if she did not observe strict bed rest. The Claimant was advised to request a medical/maternity
leave for 9 months. The Claimant was issued an excuse duty/discharge form dated
28th December 2018 by Veta Hospitals Limited which he delivered to the
Defendant’s Human Resources Manager on 28th December 2018 at about 3 pm. On 3rd
January 2019, at about 11 am, he collected the Defendant’s “Leave of Absence
Form” from the Human Resources Manager for the Claimant. The Claimant filled out
the form and returned it to the Human Resources Manager on the same day at
about 3 pm. He stated that the leave of absence was on medical grounds, and the
leave duration was nine months, from 28th December 2018 to 28th September 2019
and the Claimant was expected to resume afterward. On 8th January 2019, when he
visited the Claimant, the Claimant informed him that her supervisor called to
inform her that her leave had been approved, and it was approved on 7th January
2019 and 8th January 2019 by the Defendant’s three principal officers:
Chika-Ikechukwu Okpara, the Claimant’s Supervisor, Sylvester Ogogo, the Head of
Department and Kate Obasi, the Human Resources Manager. On 17th January 2019, the
Claimant told him that her supervisor called to inform her that she had a
letter from the Defendant and that he should pick up the letter for her. He
collected the letter from the Human Resources Manager and observed that the
date on the letter was 7th January 2019 but he acknowledged the letter on 17th
January 2019. When he took the letter to the Claimant, he observed that she was
displeased and lamented that the Defendant introduced stiff conditions contrary
to the approval on the leave of absence form. He also observed that the
Defendant stated in the letter that the Claimant would not be entitled to any
benefits during her leave and directed the Claimant to return all Defendant’s
property in her possession. Consequently, he returned the Claimant’s ID card, uniforms,
official phone, and HMO card to the HRM. He stated that the Defendant has not paid
the Claimant’s salary from January 2019 to date. Also, in January 2019, he observed
that the hospital demanded payment for the Claimant’s medical bill from them,
and when he asked, he was informed that the Defendant no longer covers the Claimant’s
medical bill. The Claimant informed him that she received a message from the
Defendant’s HMO that her policy had been terminated. As a result of the
Claimant’s situation and out of desperation the Claimant applied for a loan. In
May 2019, the hospital confirmed that the Claimant was fit to resume work
before she could deliver her baby. The hospital also issued a medical report to
that effect which he delivered to the Defendant by a letter dated 29th May 2019.
The Claimant resumed work on 1st July 2019 but the HRM insisted that she must
go back and deliver her baby before returning to work. The Claimant safely
delivered her baby without any complications on 4th June 2019. He delivered the
letter dated 3rd September 2019 to the Human Resources Manager the same day. On
5th September 2019, he delivered the Claimant’s letter dated 5th September 2019
to the Human Resources Manager. He confirmed that the Claimant resumed work on
2nd October 2019 since 1st October 2019 was a public holiday. The Claimant
informed him that she reported both to her Manager at the Commercial Department
and the Human Resources Manager but found that her usual duty post had been
occupied and there was no arrangement made for her return by the Defendant and
that all the Claimant’s efforts to seek audience with the HRM concerning where
she would resume work did not yield any result as the HRM kept her in suspense
without any definite statement on the status of her employment with the
Defendant and without pay. Under cross-examination, he confirmed that the Claimant is his spouse. They
married on 26th May 2018, and they were married when the Claimant was
discharged in 2018 and when the leave of absence form was filled. He worked for
Arik and was an employee of Arik when those things happened. He confirmed that
none of the documents tendered was addressed to him. The only role he played
was to collect the documents and submit them.
17. The Claimant testified that she was
employed as a catering assistant by the Defendant on 12th November 2013. Due to
her diligence, dedication, and satisfactory performance her appointment was
confirmed, and she rose to the position of a ticketing and reservation officer.
She stated that a Receiver/Manager was appointed over the Defendant’s affairs on
9th February 2017. The terms and conditions governing her employment with the
Defendant were stated in her appointment letter while other practices are in
line with international best practices. She denied the existence of any employee
handbook despite the reference to it in the appointment letter. By the terms of
her employment, she was entitled to a contributory pension, and her
contribution was calculated using basic salary, housing, and transport
allowances which were N150,000, N210,000, and N90,000 respectively amounting to N33,750
annually and N2,812.50 monthly. She
stated that the Defendant was also obliged to contribute N33,750 annually as her pension contributions when she was still a
Catering Assistant. Upon her promotion as a ticketing and reservation officer on
2nd July 2015, her gross annual salary was increased to N1,200,000 consisting of N450,000
basic salary, N630,000 housing allowance,
and N270,000 transport allowance respectively,
and her pension contribution increased to N67,500
annually. The Defendant was also obliged to contribute N67,500. Her annual gross income was increased to N1,800,000 on 21st August 2017 comprising N300,000 basic salary, N420,000 housing allowance, and N180,000 transport allowance which
increased her annual pension contribution to N101,250
and monthly contribution to N8,437.50 and
the Defendant was obliged to contribute the same amount. By letter dated 22nd
January 2018, her salary was increased to N1,824,000.
She stated that her total pension contributions from 12th November 2013 to 31st
December 2018 was N801,538.50 which she
particularised. The Defendant should have remitted the sum of N801,538.50 to her Pension Account No.
PEN200692325117 maintained with Leadway Pensure PFA Limited but only remitted N412,754.54 and withheld N388,783.96 without justification. According
to her, she gained about 27% on the net contribution of N412,754.54 in the sum of N111,
846.30 which leaves the closing current value of her contribution at N524,600.84 as of 18/01/19 instead of N200,386.63 being 27% of N801,538.50 which she would have earned had
the Defendant remitted her pension contributions in full. She stated that she was
entitled to salary and pensions during her leave of absence and after
completion of the leave. She was also entitled to paid maternity leave from
December 2018 to September 2019 having served the Defendant for more than 2 years
and paid leave and medical benefits as stipulated in her employment contract
but which were not reflected on the leave of absence form dated 3rd January 2019.
In November 2018, a test result revealed that she was pregnant when on
admission at the Prince & Princess Hospitals. Before then, she suffered some
complications and lost a pregnancy due to work-related stress. She was placed
on one week’s bedrest because of her medical history for her safety and that of
her unborn child. She notified the Defendant and the Health Management
Organization, Clearline which contacted
the hospital. On the hospital’s advice, and for fear of losing her pregnancy coupled
with the fact that her condition did not improve, she changed her hospital to
Veta Hospitals Limited on 18th December 2018. She also notified the Defendant
and the HMO which contacted the new hospital. After being discharged from the
hospital, she was placed on one week’s bed rest by the hospital and the
Defendant was notified by Veta Hospitals Limited letter dated 20th December 2018.
The doctors subsequently informed her that she could not resume work as she was
likely to have a miscarriage, and was advised to request a medical
leave/maternity leave for 9 months. Based on this, the hospital issued her an
excuse duty/discharge form dated 28th December 2018. She stated that the 9
months comprised 6 months maternity leave and 3 months’ nursing mother leave
which she was entitled to per the terms of her employment. She submitted the
form dated 28th December 2018 to the Defendant through the HRM and was given
the leave of absence form on 3rd January 2019 which she filled and submitted to
the HRM on the same date. The leave of absence was on medical grounds
commencing from 28th December 2018 to 28th September 2019 and was duly approved
by the Defendant on 7th January 2019 and 8th January 2019. About 16th January 2019,
her supervisor telephoned to inform her of a letter from the Defendant which
her husband collected on 17th January 2019. The letter was captioned “Re:
application for leave of absence” and backdated to 7th January 2019. Despite
approving the nine months’ leave, the Defendant introduced extraneous
conditions contrary to the approval contained in the leave of absence form. The
Defendant informed her that she would not be entitled to any benefits during
the period contrary to the terms of her employment. She stated that the Defendant’s
non-payment of her salary occasioned hardship to her given that she had no
other source of income. She was also required to return the company’s property
in her possession including her staff identity card, uniforms, official phone, and
the HMO card. She could not protest at the time due to her condition. She complied
with the directive and returned the Defendant’s properties to the HRM. According
to her, the Defendant withheld her salary from January 2019 to date. In
addition, she received a message from the Defendant’s HMO that her policy had
been terminated and was left on her own, and was forced to apply to Page International
Financial Services Limited for a loan to offset her medical bills. In May 2019,
the hospital confirmed her stable and fit to resume work. She notified the
Defendant by a letter dated 29th May 2019. When she resumed on 1st July 2019,
the HRM insisted that she must go back and deliver her baby before returning to
work. In June 2019, she returned to Prince and Princess Hospitals because of the
proximity to her residence, and on 4th June 2019, she delivered her baby. By
the 3rd week of August 2019, she informed the HRM that she was preparing to
resume work as scheduled and her hospital also wrote a letter to inform the
Defendant of her condition and her preparedness to resume work. Despite the
communication to the HRM and the letter from the hospital, the Defendant did
not respond. Therefore, she wrote another letter to the HRM dated 5th September
2019 informing the Defendant of her fitness and readiness to resume work. When
she resumed work on 2nd October 2019, she reported to her Manager at the
Commercial Department and the Human Resources Manager but discovered that her
usual duty post had been occupied without any arrangement for her resumption.
She tried to seek an audience with the HRM to know the status of her employment
and her resumption date to no avail. Instead, she was asked to wait until a
vacancy was available. The Defendant still refused to pay her salary and
benefits after her resumption occasioning hardship to her which she particularised.
These include the Defendant’s refusal to pay her annual leave allowance,
maternity leave allowance as well as medical benefits as an expectant mother
and also a nursing mother which she was entitled to per her employment; the termination
of her HMO; non-remittance of her pensions; and her appointment was neither
suspended nor terminated per the terms of her employment yet the Defendant has
since January 2019 refused to pay her salary. She testified that her employment
was kept in limbo which act occasioned hardship to her coupled with the Defendant’s
other actions. She stated further that her inquiry at her pension manager’s
office on 29th June 2020 revealed that the Defendant did not regularly remit
her pension contributions, and particularly failed to remit her contributions from
December 2014 to December 2016, and February 2019 to date while giving her the
impression that her pension contributions were being paid. The Defendant also
failed to accurately and regularly remit its portion of her pension contributions
from December 2014 to date to her Pension Account No. PEN200692325117
maintained with Leadway Pensure PFA Limited. Upon the refusal of the HRM to
resolve her issue coupled with the financial hardship, she sent an email to the
Receiver/Manager on 23rd January 2020 to notify him of her ordeal but he did not
respond to the email and did nothing about her complaint. She claims per the
statement of facts.
18. Under cross-examination, she confirmed that
she had worked for the Defendant for 5 years before the leave of absence. She identified
Exhibit 9 as her employment contract. Asked if there were other terms not
captured in Exhibit 9, she said Exhibit 9 is the only contract. She insisted
that the leave of absence is stipulated in Exhibit 9. Asked to identify the
provision on leave of absence, she said it was under medical benefits and attached
to her maternity leave. She confirmed that Exhibit 9 provided for maternity
leave which is 12 weeks but she was given 9 months due to her health condition.
She admitted that she requested the 9 months’ leave of absence and said Exhibit
4 is the application and the response letter is the approval, Exhibit 5. She admitted
that Exhibit 5 is the Defendant’s response to her application for leave of
absence. She confirmed that she returned to work in May 2019 which was within
the period she applied for, and she was very heavy. While admitting that the
Defendant did not allow her to resume because they didn’t want her to deliver
her baby in the office, she said her line manager said she would follow what
the doctor said, and she informed her that her maternity leave is part of her
leave of absence. She admitted that she had her baby on 4th June 2019. She
confirmed that Exhibit 7 was her letter informing the Defendant of her
preparedness to resume work. She said besides Exhibit 7, there were other
communications to the Defendant that she had given birth. She was shown Exhibit
8, and she confirmed that it was the communication, and she did not receive any
communication from the Defendant that someone else had taken her position. She
confirmed that she resumed on 2nd October 2019 but became aware that her
services were no longer required by 23rd January 2020. Her line manager called
for a brief meeting when she resumed on 2nd October 2019 and promised to revert
to her through HR. She confirmed that the Defendant went into receivership on 9th
February 2017. She said she was unaware that PENCOM sued Arik in 2016 for not
remitting its employees' pension contributions. Re-examined, she explained that
she applied for 9 months’ leave of absence because of the threatened abortion during
her pregnancy.
19. The Defendant’s witness and Human Resources
Manager, Mr. Peter Ogunsanmi, testified that the Defendant is under
receivership and its operations are run by a Receiver/Manager appointed by the
Asset Management Corporation of Nigeria due to the failure of the former
management to repay the debt owed to AMCON. About 2nd February 2017, AMCON, acting
under the Asset Management Corporations Act, 2015, appointed a Receiver/Manager
over the acquired assets, undertaking, and goodwill of the Defendant based on
the existing deed of debentures between the Defendant and the banks to which
the Defendant was exposed. He stated that by Section 48 of the AMCON Act, the
Receiver/Manager is empowered to realize the assets of the Defendant and
recover the debts owed by their directors and shareholders and use the proceeds
to pay AMCON as the secured creditor the debts which the debtor company
originally owed to the banks. This is the power of appointment that AMCON
exercised by the appointment of the Receiver/Manager over the Defendant in
2017. The relevant statutory authority was thereafter duly notified of the
Receiver/Manager’s appointment as required by law. Since the appointment of the
Receiver/Manager, and in his capacity as the Receiver/Manager which imposes a
fiduciary obligation on him to the company, he has been running and managing the affairs of the company with the utmost good
faith towards it in any transactions with it or on its behalf, and at all
times, the Receiver/Manager has been acting in what he believes to be in the
best interest of the company as a whole to preserve its assets, further its
business and promote the purposes for which it was formed and in such manner as
a faithful, diligent, careful and ordinary skillful manager would act in the
circumstances. The Defendant admits that there was a contributory
pension benefits scheme in place in the company before the Receiver was
appointed. However, the available record shows that the Defendant’s former
management did not remit any employee pension contributions to the employees’
Pension Fund Administrators. According to him, the National Pension Commission instituted
an action against the company in Suit
No. NICN/LA/104/2016, National Pension Commission v. Arik Air Limited
for the non-remittance of employees’ pension contributions, which suit was
discontinued by a notice of discontinuance dated 8th February 2018 soon after
the appointment of the Receiver/Manager. Consequently, the Defendant, now in receivership,
denied any liability to the Claimant for her outstanding pension contributions,
at least during the period of the receivership. The witness stated that the
Receiver’s primary obligation is to recover the debt owed to AMCON and to
return the company to its directors and shareholders after completion of his
assignment. He also denied the claims relating to the leave of absence and
stated that the Claimant had no right to proceed on the leave of absence by the
terms of her employment. The decision to grant her wish to do so was a
humanitarian gesture the terms of which were duly communicated to her. She was notified before her departure that
her return to her position could not be guaranteed due to the operational
sensitivity of the position she held at the time. He stated that the Claimant’s
disengagement from work is in line with the terms of her employment. Therefore,
the Defendant is not liable to pay any outstanding salaries, leave
bonus/allowance or any other benefits to the Claimant. He stated that the
Receiver/Manager is not an agent of the company but that of AMCON and as such
did not assume any liabilities to the Claimant before his appointment. He stated that the terms of the
Defendant’s subsequent employment relationship with the Claimant are contained
in the employees’ handbook and the letter of employment dated 12th November
2013. He denied that the Defendant is indebted to the Claimant for any sum of
money at all since the Defendant did not assume any obligation for pension
benefits that accrued before the receivership and which the former management
failed to remit and for which the Defendant was sued by the National Pension
Commission. He stated that AMCON, as the secured creditor that appointed a
Receiver out-of-Court, through the Receiver/Manager did not assume any
liabilities to the Claimant regarding the subject matter of this suit, and
prayed the Court to dismiss the Claimant’s suit in its entirety with
substantial costs to the Defendant. The Defendant tendered two documents marked
Exhibits D1 and D1A. These are the copies of the General Form of Complaint in Suit
No. NICN/LA/104/2016, National Pension Commission v. Arik Air Limited, and
notice of discontinuance.
20. Under cross-examination, he confirmed that he
is the Defendant’s Human Resources Manager. He admitted that the Defendant owed
the staff some obligations, and communicated to them in writing regarding their
employment. He confirmed that he joined the Defendant on 2nd March 2015 as an administrative
manager, and anyone who joined the company in 2013 was there before him. He was
shown Exhibit 9 and asked to read the pension provision which he did. In answer
to the question whether Arik Air has kept to that contract, he said “Presently,
as we speak, Arik Air has kept to that contract.” When asked if Arik Air was
not complying before now, he said “Between 2008 and 2016, the former management
was not complying, but with the emergence of AMCON, no staff has been owed.” He
confirmed that Exhibits 4 and 5 emanated from the Defendant. He looked at Exhibit
4, the third row, and said he could see “leave approved” and “leave denied”. He
read out the names of staff under “leave approved” as Chika Ikechukwu Okpara, Sylvester
Egbogo, and Kate Obasi. He confirmed that Chika Ikechukwu was the Claimant’s
supervisor, Sylvester Ogbogo was the Head of Department, and Kate Obasi was the
HRM, and they were the Defendant’s staff and had the Defendant’s authority to
sign Exhibit 4. Under re-examination, he said there was no marking on leave
approved.
Evaluation of
evidence
21. I have carefully reviewed the oral and
documentary evidence by the parties. It is not in dispute that the Claimant was
the Defendant’s employee and proceeded on nine months’ leave of absence from
28th December 2018 to 28th September 2019 with the Defendant’s approval. It is
also not disputed that the leave of absence was connected with the Claimant’s
pregnancy-related complications. See paragraphs 2, 5, 28, 29, 30, 31, 32, 33, 34,
35, 36, and 37 of the Claimant’s witness deposition, paragraph 7 of the
Defendant’s witness deposition and Exhibits 1, 2, 3, 4, 5, 6, 9, 10, 11, 12, 13,
and 14. The Defendant’s contention is that the Claimant was not entitled to
leave of absence by the terms of her employment, and approval for the leave was
granted on compassionate grounds, the terms of which were duly communicated to
the Claimant. The Defendant also states that the Claimant was notified before
her departure that her return to her position could not be guaranteed due to
the operational sensitivity of the position. The critical documents are
Exhibits 9, 4, and 5. Exhibit 9 is the
Claimant’s employment letter and encapsulates the terms of her employment
contract. Despite pleading the employee handbook, the Defendant did not produce
it in evidence. In paragraph 7 of her witness deposition, the Claimant
testified that the Defendant did not give her any employee handbook. Exhibit 9
provides for maternity leave after two years and an employee cannot proceed on
maternity and annual leave in the same year. There is also provision for
nursing mothers. It stipulates that “The period of maternity leave is 12 weeks
in total. Payment of salary will be made in full during the 12 weeks. Nursing
mothers may work 2 hours less than the total number of working hours contracted
each day, for three months following resumption from statutory maternity
leave.” Thus, contrary to the submission by the learned counsel for the
Claimant, there is no nursing mother’s leave, but nursing mothers are allowed
to work 2 hours less than their contracted hours each day. There is also
provision for absence due to sickness. Exhibit 9 provides, in part, “If your
absence is for more than one day, you must maintain contact with your Manager,
informing him/her of: [the] reason for absence, the expected date of return,
details of any proposed medical treatment; and notification of any outstanding
work and/or meetings that need to be covered. If you are absent for a full day
on health reasons, you must provide Arik Air Ltd with a medical certificate of
sickness or injury. For further details, please see the Employment Handbook. For all periods of absence, you must complete
an absence certification form [available from your Manager] giving the reasons
for your absence.” This provision gave rise to Exhibit 4 which is the
Defendant’s form. Therefore, the evidence of the Defendant’s witness, in
paragraph 7 of his witness deposition, that the Claimant had no right to
proceed on a leave of absence under the terms of her employment is incorrect. Moreover,
Exhibit 4 is captioned “Leave of Absence Form” suggesting that it is the
Defendant’s practice to grant leave of absence. From Exhibit 4, the leave of
absence was requested on medical grounds and was signed off by the appropriate officers,
the Claimant’s supervisor, the Head of the Department, and the Human Resources.
Under re-examination, the Defendant’s witness was asked if there was any “Leave
Approved” marking in Exhibit 4, and he said there was no marking. However, I
have painstakingly reviewed Exhibit 4 in the light of Exhibit 9, and note there
is no marking requirement. Even if marking is necessary, the error is the
Defendant’s and it cannot profit from its wrong. In any event, the signatures
under “Leave Approved” conform with the Defendant’s prescription and show
conclusively that the Defendant intended and did approve the Claimant’s request
for a leave of absence. Whether the approval was on humanitarian grounds is not
manifest on the Leave of Absence Form, Exhibit 4. It is important to add that the
request for the leave of absence was made on 3rd January 2019, passed through
the approval process, and the final signature was obtained on 8th January 2019.
Thus, I find as a fact that the Claimant’s application
was approved on 8th January 2019 without any conditions upon submission of the requisite
documents. Based on this approval, the Claimant proceeded on her leave of
absence. See paragraph 38 of the Claimant’s witness deposition.
22. Exhibit 5 is the Defendant’s letter to the
Claimant dated 7th January 2019 and captioned “Re: Application for leave of
absence”. It was signed by the Defendant’s witness and was received by the
Claimant on 17th January 2019. The Claimant testified that about 16th January 2019,
her supervisor telephoned to inform her of a letter from the Defendant which
her husband collected on 17th January 2019. She stated that the letter was captioned
“Re: Application for leave of absence” and backdated to 7th January 2019, and despite
approving the nine months’ leave, the Defendant introduced extraneous
conditions contrary to the approval contained in the leave of absence form. The
Defendant’s witness stated that the Claimant had no right to proceed on the
leave of absence by the terms of her employment and that the decision to grant
her wish to do so was a humanitarian gesture the terms of which were duly
communicated to her. The Claimant was
notified before her departure that her return to her position could not be guaranteed
due to the operational sensitivity of the position she held at the time. During
cross-examination, the Claimant testified that Exhibit 5 represents the
Defendant’s official response to her application for leave of absence. In the
Defendant’s final written address, it was argued that the terms of the
Claimant’s employment contract stipulated in Exhibit 9 were modified by Exhibit
5, and having accepted Exhibit 5 without questions, the Claimant cannot now
complain. The Defendant also argued that Exhibit 9 did not provide for leave of
absence which is regulated by Exhibit 5 and binding on the parties, resting on BFI
Group Corp v. BPE [supra] among others. It was submitted that in
determining the Claimant’s right to payment of any benefits, recourse must be
had to Exhibits 9 and 5 relying on Osakwe v. FCE Asaba [supra]. The
Defendant contended that by Exhibit 5 the Claimant knew that due to the
Defendant’s operational requirements, she may not return to her position after
her leave of absence. For the Claimant, it was argued that Exhibit 4, not
Exhibit 5, can be regarded as varying Exhibit 9 given that Exhibit 5 is a
unilateral act of the Defendant.
23. In BFI Group Corp v. BPE [supra] pages
234 - 236, the Supreme Court held that the Court must take cognizance of the
comprehensive and unequivocal wordings of the series of agreements between the
parties based on the principle that where there is a dispute between parties to
a written agreement, the only authoritative and legal source of the information
to resolve the dispute is the written document they executed. The Court also
held that “Outside oral evidence, the lower Court had an abiding duty to
scrutinize all the series of documents and was bound to determine whether there
exists a contract between the parties.” In respect of Osakwe v. FCE Asaba [supra],
my research revealed that the correct citation is [2010] 10 NWLR [Pt 1201] 1 at 37 not [2010] 10
NWLR [Pt 1323] 387, and the decision of the Supreme Court relevant to this case
is that sentiments have no place in the Nigerian judicial system and the
administration of justice. The first point to be made is that Exhibit 5 is not
the approval of the Claimant’s application for leave of absence. I found in this judgment
that the Claimant’s application for leave of absence was approved on 8th
January 2019 without any conditions upon submission of the requisite documents,
and based on the approval, the Claimant proceeded on her leave of absence. Therefore,
Exhibit
5 is the confirmation of the approval. The approval was endorsed on Exhibit 4,
and the Claimant proceeded on the leave of absence based on Exhibit 4, not
Exhibit 5. The settled principle
of law is that a letter becomes effective upon delivery. See Mr. Victor Eka
v. Kuju [2013] LPELR-22124[CA] 16. The unchallenged evidence is that
the Claimant received Exhibit 5 on 17th January 2019.
24. Paragraph one of Exhibit 5 confirms the
Defendant’s approval of the Claimant’s application for nine months’ leave of
absence on health grounds. However, the paragraph introduced a condition that
was not discussed or agreed with the Claimant before she embarked on the leave.
It reads, in part, “With reference to your request dated January 3, 2019, we
wish to inform you that your application for nine [9] months leave without pay
has been approved with effect from December 28, 2018 to September 28, 2019.”
The request is contained in Exhibit 4. Nowhere in Exhibit 4 is there a request
for nine months’ leave without pay. That phrase was introduced by the
Defendant. Paragraph two reads “You are expected to resume on September 29,
2019.” By this, it is clear that the Claimant could return to her job after the
leave of absence. In paragraph three, the Defendant wrote “Please note that
during this period, you shall not be entitled to any benefits.” As I said
earlier, the Claimant’s application for leave of absence was
approved on 8th January 2019 without any conditions. The introduction of “nine
months’ leave without pay”, and “during this period, you shall not be entitled
to any benefits” were unilateral acts of the Defendant. By the terms of the Claimant’s
employment contract, Exhibit 9, she is entitled to 12 weeks of maternity leave with pay. She is also entitled to medical benefits.
This covers the Claimant, her spouse, and two children. There is also a
provision for absence due to sickness. It is not specified in Exhibit 9 that an
employee absent on grounds of sickness will forfeit all benefits. The only
condition is “If your absence is for more than one day, you must maintain
contact with your Manager”. Therefore, I find as a fact
that the stipulation in Exhibit 5 that the Claimant’s nine months’ leave is
without pay and she would not be entitled to any benefits during the period is
a unilateral variation of the Claimant’s contract of employment. The settled
principle of law is that for parties to be bound by their agreement, they must
be ad idem on its terms. Where the terms of a contract have been agreed, it is
not open to one of the parties to unilaterally vary the terms. Any variation of
the agreed terms must be by mutual consent, and there must be an offer and an acceptance
of the variation for the required consensus ad idem to be present. See Bonum
Nigeria Limited v. Chris Baywood Ibe & Anor [2019] LPELR-46442[CA] 51
– 54 and Odubawo v. FSDH
Securities Limited [2020] 8 NWLR [Pt 1725] 1 at 36. To establish the consensus ad idem, the Defendant’s witness testified
that “The decision to grant her wish to do so was a humanitarian gesture the
terms of which were duly communicated to her.” See paragraph 7 of the
Defendant’s witness deposition. The Claimant’s evidence is that “About
16/01/2019 after I had proceeded on my leave of absence after I had been
informed by my Supervisor of the approval of my leave application, I received a
telephone call from my Supervisor to the effect that I had a letter from the
Defendant which my husband thereafter went to collect from the Defendant on my
behalf. The aforesaid letter titled RE: APPLICATION FOR LEAVE OF ABSENCE was
mischievously backdated to 07/01/19 because as at [sic, of] 08/01/19 there was
no such letter communicated to me, however, same was received by my husband on
the 17/01/2019.” Parties were not ad idem on the varied terms. The Claimant did
not accept the new terms which are, therefore, not
binding on her.
25. That is not all. In paragraphs 4, 5 and 6
of Exhibit 5, the Defendant wrote: “You are required to return any company
property in your possession; this includes ID card, uniforms, official phone, Health
management [HMO] cards, etc. Please hand over all company property in your
possession to the Human Resources Department. The position of a Ticketing and
Reservation Officer is a critical operational role; therefore, your position
may be filled during your absence and your return will be subject to available
vacancy. You should contact the company at least one month prior to your
scheduled return to discuss your possible return to work options.” These
stipulations contradict Exhibit 4, paragraph 2 of Exhibit 5, and the Claimant’s
employment contract, Exhibit 9. It is like giving with the right hand and
taking it back with the left. The Defendant had the discretion to approve or refuse
the leave of absence application. Having approved the leave of absence, it is
not within its contractual rights to act contrary to the contract of employment
or to stipulate terms that negate the substance of the leave of absence and the
Claimant’s employment contract. By withdrawing the
Claimant’s paraphernalia of office, the Defendant constructively dismissed the
Claimant. It is my respectful view and I hold so that the Claimant’s compliance
with the Defendant’s directives did not imply agreement as she had no choice
and could not challenge the Defendant’s directives at the time. See paragraphs 39
to 41 of the Claimant’s witness deposition. Therefore, contrary to the
Defendant’s submission, the principle of estoppel cannot operate against the
Claimant in these circumstances. Moreover, in the sixth paragraph, the
Defendant directed that the Claimant “should contact the company at least one
month prior to your scheduled return to discuss your possible return to work
options.” By letter dated 5th September 2019, Exhibit 8, the Claimant gave
notice of her resumption. This was followed up with a text message, Exhibit 18,
and then Exhibit 17, an email dated 23rd January 2020 to Mr. Kamilu Omokide. In
utter disregard of its directives, the Defendant refused to reply to the letter
and email or discuss with the Claimant her “possible return to work options”. Paragraphs
45, 46, and 47 of the Claimant’s witness deposition are instructive, and for
clarity, they are reproduced here.
45. Sometime
in the 3rd week of August 2019 I informed the HRM that I was preparing to
resume work as scheduled and my hospital also wrote a letter to inform the
Defendant of my condition and the fact that I was ready to resume work.
46. Despite
my communication to the HRM and the letter from the hospital I did not get any
feedback from the Defendant, and I therefore took the precaution of writing
another letter to the HRM on the 5/09/2019 communicating my fitness and
readiness to resume work.
47. I
resumed work as scheduled on the 2/10/2019 [the 1/10/2019 being a public
holiday] and reported both to my Manager at the Commercial Department of the
Defendant and the Human Resources Manager but found that my usual duty post had
been occupied and there was no arrangement made for my return by the Defendant.
That all my efforts to seek audience with the HRM as to where I would resume
work for the Defendant did not yield any result as the HRM kept me in suspense
without any definite statement as to the status of my employment with the
Defendant and without pay.
26. This evidence remains unchallenged. The
Defendant showed scant regard for the Claimant, and forgot the ILO admonition
that “labour is not a
commodity”. “Labour is not an inanimate product, like an apple or a television set,
that can be negotiated for the highest profit or the lowest price. Work is part
of everyone’s daily life and is crucial to a person’s dignity, well-being and
development as a human being.” See The Benefits of International Labour Standards. The
Claimant’s maternity rights, absence due to illness or pregnancy complications,
and medical benefits are protected under the Maternity Protection Convention,
2000 [No. 183]. See Articles 4, 5, and 6. In Article 6[7] medical benefits
shall include prenatal, childbirth, and postnatal care, as well as
hospitalization care when necessary. Article 8[1] and
[2] provide:
1. It shall be unlawful for an employer to terminate the
employment of a woman during her pregnancy or absence on leave referred to in
Articles 4 or 5 or during a period following her return to work to be
prescribed by national laws or regulations, except on grounds unrelated to the
pregnancy or birth of the child and its consequences or nursing. The burden of
proving that the reasons for dismissal are unrelated to pregnancy or childbirth
and its consequences or nursing shall rest on the employer.
2. A woman is guaranteed the right to return to the same position
or an equivalent position paid at the same rate at the end of her maternity
leave.
27. Even though Nigeria has not ratified ILO Convention
No. 183, the convention is binding on Nigeria as a member state of the ILO. The
ILO Convention No. 183 represents the best international labour standards that
this Court is enjoined to apply. See Section 254C[1][h] of the 1999
Constitution. Section 54 of the Labour Act provides for the protection of the
maternity rights of women, but the protection is not extensive. Section
54[1][a] and [b] of the Labour Act guarantees the Claimant 12 weeks of leave,
six weeks before delivery and six weeks after delivery of her baby. A similar
provision is made in Exhibit 9. While Section 54[3] of the Labour Act provides
that “No employer shall be liable, in his capacity as an employer, to pay any
medical expenses incurred by a woman during or on account of her pregnancy or
confinement”, Article 6[7] of the Maternity Protection Convention 2000, No.183
provides that “Medical benefits shall be provided for the woman and her child in
accordance with national laws and regulations or in any other manner consistent
with national practice. Medical benefits shall include prenatal, childbirth and
postnatal care, as well as hospitalization care when necessary.” Exhibit 9 confers
the right to medical benefits on the Claimant. It provides that “You shall be
entitled to the company’s medical scheme after completion of the mandatory six months’
probation period. The medical scheme covers you, your spouse and two children.”
There is unchallenged evidence that the Claimant’s employment was confirmed. See
paragraph 9 of the Claimant’s witness deposition and Exhibit 10. There is also
evidence that the Claimant was denied medical benefits during the leave of
absence. See paragraphs 40 and 42 of the Claimant’s witness deposition and
Exhibit 15. In this premise, I find as a fact that the
withdrawal of medical benefits to the Claimant during the leave of absence is
wrongful and in breach of her employment contract.
28. The Defendant’s witness testified in paragraph 8 of his statement on
oath that “the Claimant’s disengagement from work is in line with the terms and
conditions of her contract of employment and as such the Defendant denies any
liability to pay any outstanding salaries, leave bonus/allowance or any other
benefits to the Claimant.” It was argued for the Defendant that Section 11[8]
of the Labour Act provides statutory approval to Exhibit 5. Therefore, there is
no basis for the claim for N30,000,000
damages for wrongful dismissal. See paragraph 4.17 of the Defendant’s final
written address. For the Claimant, it was argued that by the combined
provisions of Sections 9[2], [7], 11[1], [2][d], and 54[1], [2] and [4] of the
Labour Act, the Defendant having granted leave to the Claimant by Exhibit 4,
cannot terminate the Claimant’s employment in the manner it purported to do by
Exhibit 5. I found in this judgment that by withdrawing the Claimant’s paraphernalia of office,
the Defendant constructively dismissed the Claimant. Section 54[4] of the
Labour Act provides that “Where
a woman – [a] Is absent from her work in pursuance of subsection [1][a] or [b]
of this section, or [b] Remains absent from work for a longer period as a
result of illness certified by a medical practitioner to arise out of her
pregnancy or confinement and to render her unfit for work, then, until her
absence has exceeded such a period, if any, as may be prescribed, no employer
shall give her a notice of dismissal during her absence or notice of dismissal
expiring during her absence.” Article 8[1] of the
Maternity Protection Convention 2000, No.183 provides that “It shall be unlawful for
an employer to terminate the employment of a woman during her pregnancy or
absence on leave referred to in Articles 4 or 5 or during a period following
her return to work to be prescribed by national laws or regulations, except on
grounds unrelated to the pregnancy or birth of the child and its consequences
or nursing. The burden of proving that the reasons for dismissal are unrelated
to pregnancy or childbirth and its consequences or nursing shall rest on the
employer.” Therefore, the Defendant could not under any guise terminate the
Claimant’s employment during the subsistence of the leave of absence or any
time after her resumption. By
agreement of the parties, Exhibit 9, the Claimant’s employment could only be
terminated by one month's written notice or one month's salary in lieu of
notice. No notice was given, and no salary was paid in lieu of notice. I have
carefully considered the evidence, the applicable law and international labour standards,
and find as a fact that the Claimant’s disengagement breached
her employment contract, the Labour Act and it is contrary to international
best practices, and therefore, wrongful. I also find as a fact that the
Claimant is entitled to her medical benefits during the nine months’ leave of
absence and upon her resumption on 2nd October 2019.
29. The next issue is whether the Claimant has
established her claim for pensions. The evidence in support of the Claimant’s
pension claims is in paragraphs 8, 11 to 24, and 50 of the Claimant’s statement
on oath, and Exhibit 19. The Claimant testified that by the terms of her
employment, she was entitled to a contributory pension, and her contribution
was calculated using her basic salary, housing, and transport allowances. She
stated that her total pension contributions from 12th November 2013 to 31st
December 2018 was N801,538.50, which she
particularised, and which the Defendant should have remitted to her Pension
Account No. PEN200692325117 with Leadway Pensure PFA Limited, but it only
remitted N412,754.54 and withheld N388,783.96 without justification. According
to her, she gained about 27% on the net contribution of N412,754.54 in the sum of N111,846.30 which leaves the closing
current value of her contribution at N524,600.84
as of 18th January 2019 instead of N200,386.63
being 27% of N801,538.50 which she
would have earned had the Defendant remitted her pension contributions in full.
She testified that she was entitled to salary and pensions during her leave of
absence and after completion of the leave. It is the Claimant’s evidence that
her inquiry at her pension manager’s office on 29th June 2020 revealed that the
Defendant did not regularly remit her pension contributions and failed to remit
her contributions from December 2014 to December 2016, and February 2019 to
date while giving her the impression that her pension contributions were paid.
The Defendant also failed to accurately and regularly remit its portion of her pension
contributions from December 2014 to date to her Pension Account. Exhibit 19 is
the Claimant’s retirement savings account statement, and corroborates her
evidence of non-remittance of her pensions from December 2014 to December 2016,
January 2019 to January 2020. The Defendant admitted that there was a
contributory pension scheme in place in the company before the Receiver was
appointed. However, the available record shows that the Defendant’s former
management did not remit any employee pension contributions to the employees’
Pension Fund Administrators. Consequently, the National Pension Commission
instituted an action against the company in Suit No. NICN/LA/104/2016, National Pension Commission v. Arik Air
Limited for the non-remittance of employees’ pension contributions,
which suit was discontinued by a notice of discontinuance dated 8th February
2018 soon after the appointment of the Receiver/Manager. Exhibits D1 and D1A
were tendered to support this evidence. Therefore, the Defendant denied any
liability to the Claimant for her outstanding pension contributions for the period
before the receivership. See paragraphs 6[iv], [v], and [vi] of the Defendant’s
witness deposition. There is unchallenged evidence that the Claimant is
entitled to the contributory pension and that deductions were made from her
salary for pension which were not remitted from December 2014 to December 2016.
The basis of the Defendant’s denial of liability for the Claimant’s pension
contributions from December 2014 to December 2016 is that the debt was
contracted by the former management, the Receiver/Manager is not an agent of
the company, and his mandate is to realise the assets of the Defendant for the benefit
of the secured creditors.
30. The right to pension is both constitutional and
statutory. Pension is a right that cannot be unilaterally taken away by the
employer. It is intended to cushion the rigours of the life of the employee
upon cessation of employment. See Section 210[1] and [2] of the 1999 Constitution, Section 3 of the
Pension Reform Act, 2014, and the cases of Momodu v. Nigerian Union of Local Government Employees
& Ors [1994] 8 NWLR [Pt
362] 336 at 350 and Emokpae v. Stanbic-IBTC
Pensions Managers Ltd [2015]
17 NWLR [Pt 1487] 57 at 74. There
is no general right to make deductions from the employee’s salary except as
provided by law. The law treats the issue of employees’ salaries with such
sacredness that except expressly permitted by law or the employee, no employer can
make any deductions from an employee’s salary. So, when deductions are made
from an employee’s salary, they must be applied for the intended purpose. See Chemical
and Non-Metallic Products Senior Staff Association v. Benue Cement Company Plc
[2005] 2 NLLR [Pt 6] 446 at 470. Under the Pension
Reform Act of 2014, an employer is required to deduct a certain percentage of
the employee’s salary and pay it to the employee’s Pension Fund Administrator. There
is uncontroverted evidence that deductions were made from the Claimant’s salary
for pensions which were not remitted to her pension account. The Defendant’s
argument that the debt was incurred by the former management is untenable. The Defendant
is still a going concern despite the receivership. Therefore, it cannot retain
the money deducted from the Claimant’s salary. While Exhibits D1 and D1A show
that the National Pension Commission took out a writ against the former
management of the Defendant for non-remittance of the employees’ pensions, it
does not disclose the basis of the discontinuance neither does it create an
estoppel against the Claimant. Where there is a right, there must be a remedy. Since
the employment relationship has ceased, the Defendant must pay over the sums
deducted to the Claimant’s pension fund administrator. Therefore, I find as a
fact that the Claimant has established her claims for pension from December 2014 to December
2016.
31. Exhibit
16 is the Claimant’s Fidelity Bank Plc statement of account, and corroborates
the Claimant’s evidence that she obtained a loan from Page International
Financial Services Limited to fund her medical expenses. It also supports her
evidence that the Defendant has not paid her salary and allowances from January
2019 to July 2020. Exhibits 21 and 22 are the Claimant’s Solicitors letter to
the Defendant demanding reinstatement and payment of outstanding salary, and
Defendant’s response denying liability.
Arising from the foregoing, the lone
issue for determination is resolved in the affirmative.
Consideration of the reliefs
32. The first relief seeks a declaration that
by the Leave of Absence Form dated 3/01/19 which was approved by the Defendant
through its three [3] principal officers i.e. the Claimant’s supervisor, the
Head of the Claimant’s Department and the Human Resources Manager, which the
approval contained in the aforesaid Leave of Absence Form governed the
Claimant’s leave of absence, the Claimant’s employment with the Defendant still
subsists. A claim for declaration is not granted as a matter of course. By the
combined force of Section 54[4] of the Labour Act and Article 8 of the Maternity Protection Convention 2000, No.183,
the Defendant could not terminate the Claimant’s employment during her approved
leave of absence. However, I found in this judgment that by withdrawing the Claimant’s
paraphernalia of office, the Defendant constructively dismissed the Claimant.
Also, by refusing to assign the Claimant an office after her resumption on 2nd
October 2019 and keeping her employment in abeyance up till January 2020, the
Defendant manifested its intention to dispense with the Claimant’s services.
Based on the foregoing, a declaration that the Claimant’s employment subsists
cannot be made. The law is trite that where there is a purported termination of
an employment contract, a declaration that the employment subsists will rarely
be made since the Court will not grant specific performance of a contract of
service without statutory flavour except in very deserving circumstances. This
is based on the principle that the Court will not force a willing employee on
an unwilling employer. See Ilodibia v. Nigeria Cement Company Limited [1997]
LPELR-1494[SC] 18. Accordingly, this claim fails.
33. The second claim seeks an order of this
Honourable Court directing the Defendant to pay the Claimant’s salary and other
emoluments which were unjustly withheld from the Claimant before and/or after
the approval of the Claimant’s application for leave of absence, the annual
gross income being N1,824,000.00 [one
million, eight hundred and twenty four thousand naira] per annum from 01/01/2019, including but not limited to the sum
of N388,783.96 [three hundred and
eighty-eight thousand, seven hundred and eighty-three naira and ninety-six kobo]
being the difference of the irregular remittance by the Defendant to the
Claimant’s Pension Account with Number PEN200692325117 maintained with Leadway
Pensure PFA Limited from December 2014 till date, with interest at the rate of
27% per annum till judgment is delivered and thereafter at the rate of 10% per
annum until the entire sum is liquidated. The Claimant lumped many reliefs in
one. I found in this judgment that the stipulation in Exhibit 5 that the
Claimant’s nine months’ leave was without pay and she would not be entitled to
any benefits during the period is a unilateral variation of the Claimant’s
contract of employment which was not binding on the Claimant. Thus, she was
entitled to her usual salary and benefits for the period. However, it is not clear
what the Claimant claims in this relief. What the “other emoluments” are were
not stated. There is no pleading or evidence of withheld salaries before the
approval of the leave of absence. The Claimant claims “salary from 1/1/2019” without
specifying the end date. So, the claim for salary is imprecise, and the Court
cannot grant an imprecise claim. In addition, pre-judgment interest must be
pleaded and proved. See Interdrill Nigeria Ltd & Anor v. United Bank for
Africa Plc [2017] 13 NWLR [Pt 1581] 52 at 72 - 73. There is no pleading or
evidence on the interest claimed. While this Court can award post-judgment
interest under Order 47 Rule 7 of the National Industrial Court of Nigeria
[Civil Procedure] Rules, 2017, there are, so far, no awards made. So, the claim
for post-judgment interest is premature. Furthermore, while I found that the Claimant has established her claims for
pension from December
2014 to December 2016, the claim for pension is duplicated. Based on the
foregoing, I hold that the Claimant has not established this claim which is
consequently refused.
34. The third claim is for a declaration that
by virtue of the letter of appointment dated 12/11/13, the Claimant’s Pension
Account Number PEN200692325117 maintained with Leadway Pensure must be credited
with 15% [inclusive of the Defendant’s contribution] of the Claimant’s basic
salary, housing allowance, and transport allowance from 12/11/13 till date. There
is unchallenged evidence that the Claimant was entitled to the contributory
pension and that deductions were made from her salary for pension which were
not remitted from December 2014 to December 2016. There is also evidence that
the Claimant’s pension from January 2017 to December 2018 has been remitted. I
found that the Claimant has
established her claims for pension from December 2014 to December 2016. However, there is no
evidence that the Claimant’s employment subsists given that parties acknowledge
that the Claimant has been constructively dismissed. Therefore, I hold that the
Claimant is entitled to payment of 15% of her basic salary, housing, and
transport allowances from 12th November 2013 to 31st December 2016. This claim
is granted in part.
35. The fourth relief seeks a declaration that
the sum of N412,754.54 [four hundred
and twelve thousand, seven hundred and fifty-four naira and fifty-four kobo] paid
into the Claimant’s Pension Account Number PEN200692325117 maintained with
Leadway Pensure Limited is grossly inadequate of the pension contribution of [the]
pension earned by the Claimant from 12/11/13 till date. There is evidence that
the Claimant’s total pension contributions from 12th November 2013 to 31st
December 2018 was N801,538.50, but the
Defendant only remitted N412,754.54
leaving N388,783.96 unpaid. Therefore,
I hold that the remittance of N412,754.54
does not represent the Claimant’s pension entitlement from 12th November 2013
to 31st December 2018. I adopt my reasoning and conclusion in paragraph 34
above and hold that this relief succeeds in part.
36. The fifth relief is for an order of this
Honourable Court directing the Defendant to pay the sum of N388,783.96 [three hundred and eighty-eight thousand, seven hundred
and eighty-three naira and ninety-six kobo] representing the deficit of the remittance
by the Defendant to the Claimant’s Pension Account Number PEN200692325117
maintained with Leadway Pensure PFA Limited. I found in this judgment that the Claimant has established her claims for
pension from December
2014 to December 2016. In addition, this relief is ancillary to reliefs three
and four above. Therefore, I adopt my reasoning and conclusions in paragraphs
30, 34, and 35 above and hold that this relief has been established and is
granted.
37. Relief six seeks a declaration by this
Honourable Court that the act of the Defendant refusing or failing to credit
the Claimant’s pension Account Number PEN200692325117 maintained with Leadway
Pensure Limited accurately and appropriately is oppressive, wrongful, and a
violation of the Claimant’s right as protected and preserved by the Pension
Reforms Act. As I said earlier,
the right to pension is both constitutional and statutory. Pension is a right that
cannot be unilaterally taken away by the employer for any reason whatsoever.
Pension is intended to cushion the rigours of the life of the employee after
cessation of employment. Under the Pension Reform Act of 2014, an employer is
required to deduct a certain percentage of the employee’s salary and pay it to the
employee’s Pension Fund Administrator. There is uncontroverted evidence that
deductions were made from the Claimant’s salary for pensions which were not remitted
to her pension account. The Defendant’s argument that the debt was incurred by
the former management is untenable. The Defendant is still a going concern
despite the receivership and is obligated to remit the Claimant’s outstanding
pension contributions. Therefore, I hold that the Defendant’s refusal to credit the
Claimant’s Pension Account No. PEN200692325117 with Leadway Pensure Limited
accurately and appropriately is oppressive, wrongful, and a violation of the
Claimant’s pension right. This claim succeeds.
38. Relief seven seeks damages in the sum of N5,000,000.00 [five million naira] for
failure of the Defendant to pay the adequate and appropriate pension earned by
the Claimant to the Claimant’s Pension Account Number PEN200692325117
maintained with Leadway Pensure Limited. General damages are within the discretion of the Court
to grant and it is awarded to assuage a loss caused by the act of the
adversary. See Nigerian Railway Corporation v. Ojo [2021] LPELR-55971[CA] 40
- 41. The Pension Reform Act, 2014 prescribes a penalty for failure or
delay to remit pensions. Section 11[6]
of the Pension Reform Act, 2014 provides that “An employer who fails to deduct
or remit the contributions within the time stipulated in subsection [3][b] of
this section shall, in addition to making the remittance already due, be liable
to a penalty to be stipulated by the Commission. Subsection 7 provides that
“The penalty referred to in subsection [6] of this section shall not be less
than 2 percent of the total contribution that remains unpaid for each month or
part of each month the default continues and the amount of the penalty shall be
recoverable as a debt owed to the employee's retirement savings account, as the
case may be.” The basis for this claim is not manifest from the evidence given
that, by the Claimant’s calculations, what she would have earned is N200,386.63
if her pension contributions had been fully remitted but she earned N111,846.30. Considering the evidence
before me and the provisions of the Pension Reform Act of 2014, I hold that this
claim has not been established and it is refused.
39. Relief eight is for an order of this
Honourable Court directing the Defendant to restore all the paraphernalia of
office such as the operation post, identity card, uniform, official phone, HMO
card, etc., to the Claimant to enable her [to] perform and carry out her
duties. This claim is ancillary to relief one. Having found that the Claimant’s
employment has been constructively terminated, there is no justification for an
order for restoration of the paraphernalia of office. Accordingly, this claim is
refused.
40. The ninth claim is for an order of this
Honourable Court directing the Defendant to pay the Claimant’s accrued medical
benefits for the period 28th December 2018 till date which she was assured
under the terms and conditions of her employment or in the alternative [where
no particular amount is stated] to pay the Claimant the sum of N1,800,000.00 [one million and eight
hundred thousand naira] as her medical bill for the period stated. I found in this judgment that the withdrawal of
medical benefits to the Claimant during the leave of absence is wrongful and in
breach of her employment contract. I also found that the Claimant is entitled to her medical
benefits during the nine months’ leave of absence and upon her resumption on
2nd October 2019. However, there is no pleading or evidence of the amount spent on the Claimant’s
medical care for the period. There is no evidence that the Claimant is entitled
to N1,800,000.00 medical allowance.
While there is evidence that the Claimant obtained N390,000 loan from Page International Financial Services Limited on
23rd January 2019, see Exhibits 15 and 16, there is no evidence that the N390,000 was spent on the Claimant’s
medical expenses. Receipts of payment of medical bills were not produced. In this
circumstance, I hold that this claim has not been established and it is
refused.
41. Relief ten seeks a declaration that the act
of the Defendant of keeping the Claimant’s employment in abeyance is in breach
of her right to dignity of [the] human person as enshrined in Section 34 of the
Constitution of the Federal Republic of Nigeria, 1999 [as amended]. As I said
earlier, the Defendant showed scant regard for the Claimant, and forgot that “labour is not a commodity”. As posited by the ILO,
labour is not an inanimate product, like an apple or a television set, that can
be negotiated for the highest profit or the lowest price. Work is part of
everyone’s daily life and is crucial to a person’s dignity, well-being, and
development as a human being. Section 34[1][a] of the 1999 Constitution provides
that “Every individual is entitled to respect for the dignity of his person,
and accordingly no person shall be subject to torture or inhuman or degrading
treatment.” It was within
the Defendant’s contractual rights to refuse the Claimant’s application for
nine months’ leave of absence. It approved the Claimant’s leave. After that, it
discreetly terminated the Claimant’s appointment but gave the Claimant the
impression that she still had her job and refused to communicate its decision to
the Claimant even after her resumption. In this circumstance, I hold that this
claim has been established.
42. The eleventh relief is for an order of this
Honourable Court directing the Defendant to pay the sum of N5,000,000.00 [five million naira] to the Claimant for infringement
on the Claimant’s right to dignity of human person, and the psychological
trauma caused the Claimant, a nursing mother. This claim is ancillary to relief
ten, and that claim having succeeded, this claim ought to succeed. The
Defendant’s conduct in this case is so brazen, callous, oppressive, arbitrary, outrageous, and showed
scant regard for its regulations, the Labour Act, and the person of the
Claimant and her baby. See Megawealth Limited v. Securities and Exchange
Commission [2017] 13 NWLR [Pt 1583] 345 at 380 – 381. Accordingly, I award N1,000,000 punitive damages against the
Defendant.
43. The twelfth claim seeks an order of this
Honourable Court directing the Defendant to pay the sum of N10,000,000.00 [ten million naira] to the Claimant as damages for
breach of the Claimant’s terms and conditions of employment, violation of the
Labour Act, misrepresentation of facts and for loss of use of the Claimant’s
outstanding remunerations and benefits. Again, the Claimant lumped disparate
claims into one claim. The claim for damages for breach of the Claimant’s
contract of employment differs from the claim for loss of use and different
principles apply. Therefore, this claim is refused for being imprecise.
Alternatively, to reliefs 1, 8, 9, and 10
44. The thirteenth claim is for a declaration
that the Defendant’s letter dated 7/01/19 amounts to a wrongful termination of
the Claimant’s employment. I found in this judgment that by withdrawing the
Claimant’s paraphernalia of office, the Defendant constructively dismissed the Claimant.
I also found that the Claimant’s
disengagement breached her employment contract, the Labour Act and it is
contrary to international best practices, and therefore, wrongful. Thus, this claim succeeds.
45. The fourteenth claim is for damages in the
sum of N30,000,000.00 [thirty million
naira] for wrongful termination of the Claimant’s employment by the Defendant. This
claim is ancillary to relief thirteen, and that claim having succeeded, this
claim also succeeds. While, by their
contract, either party could terminate the employment by one month’s written
notice or one month’s salary in lieu of notice, allowing the Defendant to pay
the contractual sum will amount to rewarding the Defendant for its
wrongfulness. The Defendant’s conduct is despicable and
indefensible. Where there is a wrong, there must be a remedy. See Mekwunye v. WAEC [2020] 6 NWLR [Pt 1719] 1 at 22. Accordingly, the Claimant is entitled to general
damages for wrongful dismissal. On the quantum of damages to be awarded for
wrongful dismissal, Section 19[d] of the National Industrial Court Act, 2006,
provides that the Court may in all other cases and where necessary make any
appropriate order, including an award of compensation or damages in any
circumstance contemplated by this Act or any Act of the National Assembly
dealing with any matter that the Court has jurisdiction to hear. In Skye Bank Plc v. Adegun [2024] 15 NWLR [Pt 1960] 1
at 29 – 30, the Supreme Court,
per Agim, JSC, held:
Where a contract of employment
is brought to an end by the employer contrary to the terms agreed therein, the
quantum of damages awardable therefore cannot be based on the remuneration of
the employee during the period of notice prescribed in the agreement for either
party to terminate the agreement. The employer cannot enjoy the benefit he
would have enjoyed if the contract had been brought to an end in accordance
with the contract. Having brought the contract to an end in breach of the
contract, the damages payable by it cannot be restricted to only one month
salary in lieu notice, which is what it would have been liable to pay if it had
terminated the employment as prescribed in the contract. To limit the damages payable
by the employer to one month salary in lieu of notice in this case, would
amount to enabling it to benefit from its wrongful act in breach of the
contract. It is an inveterate rule of equity of great antiquity that equity
will operate to prevent a party from benefiting from his or her wrongful act.
It would be oppressive and unjust to the employee to award him or her damages
on a basis prescribed in the contract of employment for termination of his
employment in breach of that contract. Having brought his employment to an end
outside the terms of the contract the employer cannot restrict the quantum of
damages awardable to the employee to the terms prescribed in the contract. The
quantum of damages awardable to the employee in such a situation should be in
accordance with the general law of contract on award of damages for breach of contract,
which would involve a consideration of the consequential loss that has arisen
or would arise from the breach of the contract of employment having regard to
the monthly wage, current age of the employee and the due date of retirement.
Considering the facts and
circumstances of this case, including denying the Claimant the agreed medical
benefit, maternity leave with pay, and refusal to pay the Claimant’s salary
after she resumed on 2nd October 2019, I award the Claimant three years gross
salary as general damages for wrongful termination of the Claimant’s employment.
46. The fifteenth claim is for the cost of this
suit in the sum of N650,000.00 [six
hundred and fifty thousand naira] only. Generally, cost follows events in litigation, and
a successful party is entitled to her costs. See Egypt Air Limited v.
Ibrahim & Anor [2021] LPELR-55882[CA] 35 - 36. The essence of
costs is to compensate the successful party for part of the loss incurred in
the litigation. This Court has unfettered discretion to award cost which
discretion must, in all circumstances, be exercised judicially and judiciously.
See Order 55 Rules 1 and 5 of the National Industrial Court of Nigeria [Civil Procedure]
Rules, 2017. I hold that the Claimant is entitled to the cost of this action.
The Claimant spent about N54,112 as
filing fees, was present four times, and was represented by counsel in the
proceedings four times. The case spanned four years. Considering the current
value of the naira, the rate of inflation, and the time it has taken the
Claimant to enforce her right, a cost of N650,000.00
[six hundred and fifty
thousand naira] is awarded to
the Claimant against the Defendant.
47. The sixteenth claim is for interest of 15%
per annum on the total judgment sums from 01/01/2019 until liquidation of the
entire sum by the Defendant. A party who claims pre-judgment interest must
plead and prove it. See Interdrill Nigeria Ltd & Anor v. United Bank for
Africa Plc [2017] 13 NWLR [Pt 1581] 52 at 72 - 73. The pleading and
evidence are lacking. However, this Court has power under Order 47 Rule 7 of the
National Industrial Court of Nigeria [Civil Procedure] Rules, 2017 to award
post-judgment interest at a rate not less than 10% per annum. The Claimant has
not proved her claim for 15% interest. Accordingly, the Defendant shall pay
interest at the rate of 10% per annum on the total judgment sum from the date
of this judgment. This claim is granted in part.
48. In the final analysis, this action succeeds in part. Reliefs 1, 2, 7, 8,
9, and 12 fail and are dismissed. Reliefs 3, 4, and 16 are granted in part.
Reliefs 5, 6, 10, 11, 13, 14, and 15 are granted. For the avoidance of
doubt, judgment is entered for the Claimant against the Defendant as follows:
a.
It
is hereby declared that according to the letter of appointment dated 12th
November 2013, the Claimant’s Pension Account No. PEN200692325117 with Leadway Pensure
PFA Limited should be credited with 15% [inclusive of the Defendant’s
contribution] of the Claimant’s basic salary, housing, and transport allowances
from 12th November 2013 to 31st December 2018.
b.
It
is hereby declared that the sum of N412,754.54 [four
hundred and twelve thousand, seven hundred and fifty-four naira and fifty-four
kobo] which was paid into the Claimant’s Pension Account No. PEN200692325117
with Leadway Pensure PFA Limited does not represent the Claimant’s pension
contributions from 12th November 2013 to 31st December 2018.
c.
The
Defendant shall pay the sum of N388,783.96 [three
hundred and eighty-eight thousand, seven hundred and eighty-three naira and
ninety-six kobo] unremitted pension into the Claimant’s Pension Account No.
PEN200692325117 with Leadway Pensure PFA Limited.
d.
It
is hereby declared that the Defendant’s refusal to credit the Claimant’s Pension Account No.
PEN200692325117 with Leadway Pensure PFA Limited accurately and appropriately
is oppressive, wrongful, and a violation of the Claimant’s right under the
Pension Reforms Act.
e.
It
is hereby declared that the Defendant’s act of keeping the Claimant’s employment in abeyance is
in breach of her right to dignity of the human person enshrined in Section 34
of the 1999 Constitution.
f.
The
Defendant shall pay the sum of N1,000,000.00 [one million
naira] as punitive damages to the Claimant for breach of the Claimant’s right
to dignity of the human person, and for associated psychological trauma.
g.
It
is hereby declared that the Defendant’s letter of 7th January 2019 amounts to a wrongful
termination of the Claimant’s employment.
h.
The Defendant shall pay the Claimant three years’ gross salary in the
sum of N5,472,000.00 [five million,
four hundred and seventy-two thousand naira] as general damages for the wrongful
termination of the Claimant’s employment.
i.
The
Defendant shall pay the cost of this action assessed at N650,000.00
[six hundred and fifty thousand naira] to the Claimant.
j.
The
monetary awards shall attract interest at the rate of 10% per annum from today
until it is fully liquidated.
Judgment is entered accordingly.
……………………………………….…..
IKECHI GERALD NWENEKA
JUDGE
21/1/2025
Attendance: Claimant
present, Defendant absent
Appearance:
A.
T. Abdulsalam Esq. for the Claimant
Olasupo Adebayo Esq. for
the Defendant