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The Administrative Judge, Abuja Judicial Division of the National Industrial Court, Hon. Justice Osatohanmwen Obaseki-Osaghae has ordered Mr Obinn to pay the Debt Management Office the sum of N4,491,269.32 (Four Million, Four Hundred and Ninety-One Thousand, Two Hundred and Sixty-Naira Nine Naira, Thirty-Two kobo) being three months salary in lieu of notice and refund of May 2024 salary.
The Court held that Mr. Obinn's acceptance of political appointment does not discharge him from his contractual obligations to the Debt Management Office with respect to resignation and notice period.
Hon. Justice Obaseki-Osaghae stated that the failure of Mr Obinn to give the Debt Management Office the required three months' notice or payment of three months’ salary in lieu of notice is a breach of the contract of employment for which the Claimant is liable.
From facts, the claimant- Mr Obinn had submitted that he accepted a political appointment as a Commissioner and by the Public Service Rules (PSR) and the Debt Management Office’s conditions of service, acceptance of a political appointment by an employee automatically affects the resignation of the employee from the service without the need for notice or payment in lieu.
Mr Obinn stated that despite his automatic resignation, the Debt Management Office has refused to pay him his outstanding salary for the period January 22, 2024, to March 31, 2024.
In defence, the Defendant- Debt Management Office posited that Mr Obinn did not comply with the provisions of the Public Service Rules, and its conditions of service that requires him to give three-month notice of resignation.
Learned Counsel to the DMO submitted that Mr Obinn has failed to abide by the Rules governing his employment, and has also failed to give the required notices for resignation. Counsel urged the Court to find that Mr. Obinna is duty-bound to comply with the terms of his employment and dismiss Mr. Obinna's suit for being speculative, frivolous and lacking in merit.
In opposition, the learned counsel to Mr Obinn averred that his client acceptance of a political appointment as a Commissioner has effectively discharged him of the need to give three months’ notice or make payments in lieu of notice.
Counsel urged the Court to hold that Mr Obinn's acceptance of a political appointment as a commissioner constituted an automatic and immediate resignation from his position within the Debt Management Office, pursuant to Section 120237 of the Federal Government Civil Service Rules, 2011, and the Debt Management Office (DMO) Conditions of Service, thereby precluding any requirement for further notice or payment in lieu of notice and fully discharging his obligations under the terms of his employment.
Counsel urged the Court to hold that Debt Management Office's refusal to pay Mr Obinn's outstanding salary arrears for the period of January 22, 2024, to March 31, 2024, is unlawful and violates his rights under Nigerian labour law.
In a well-considered judgment, the Presiding Judge, Justice Obaseki-Osaghae reiterated that the Public Service Rules provide for various forms of leave applications in the Public Service and not resignation, and Mr. Obinna, as commissioner, was precluded from applying for leave of absence.
The Court stated that Mr. Obinn was in error when he believed that accepting a political appointment discharges him from his contractual obligations, specifically with respect to resignation and notice periods.
Justice Obaseki ruled that the Debt Management Office's conditions of service require that Mr Obinn, having resigned from his employment without notice, must pay the agency three months' salary in lieu of notice at the time of his resignation
However, the Court declared that Mr Obinn is entitled to the payment of his outstanding salary arrears for the period January 22, to March 2024, and ordered the Debt Management Office to pay the claimant the sum of N2,607,834.61 (Two Million Six Hundred and Seven Thousand Eight Hundred and Thirty-Four Naira Sixty-One Kobo) to Mr Obinna, being outstanding salary arrears for the period of January 22, 2024 to March 31, 2024.
“Each party is to bear its own cost.” The Court ruled
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