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Hon. Justice (Prof) Elizabeth Oji of the Lagos Judicial Division of the National Industrial Court has ordered Melrose Books & Publishing to pay Ade salary for the period October 2015 to June 2021 (68 months) at the rate of N60,000.00 per month, annual leave allowance from 2015 to 2021 at the rate N30,000.00 per annum, and annual medical allowance from 2015 to 2021 at the rate N30,000.00 within 30 days.
The Court rejected Melrose Books & Publishing's claim of N12.2m alleged shortfall on the ground that the Melrose Books & Publishing allegations against Ade are neither founded on any administrative nor judicial determination.
Justice Oji ruled that there is no evidence that Ade’s request to audit the Melrose Books & Publishing statement of account was adhered to, to enable Ade to conclude the reconciliation in question before he was suspended.
From facts, the claimant- Melrose Books & Publishing had submitted that Ade was responsible for receiving payments on behalf of the firm and remitting them into the company's bank account, that a comprehensive audit revealed the Ade owed N18,264,343.25, exceeding initial estimates, and the Defendant admitted to a variance of N12,218,846.75 in a handwritten report, which the company considers a binding admission.
The Melrose Books & Publishing averred that Ade requested extensions but failed to resolve the discrepancies, and the Defendant was suspended without pay for non-compliance.
In defence, Ade denied owing any amount of money and stated that an external audit found no variance or debt, that the internal auditor promised reconciliation but never provided the company’s bank statements as agreed.
It is the case of Ade that he signed an interim report under the impression that it was procedural, not an admission of liability. Ade states that he received a seven-day ultimatum to reconcile accounts, but was suspended indefinitely 2 days after without resolution and accuses Melrose Books & Publishing of failing to cooperate with reconciliation efforts.
Ade averred that despite his arrest, he was acquitted and the acquittal supports his innocence, and counter-claimed that his being placed on indefinite suspension without pay for "inability to reconcile accounts" is harsh and unlawful and that he ought to have been placed on interdiction with half salary pending investigation, aligning with fair hearing rights.
In opposition, the Melrose Books & Publishing contended that interdiction with half pay does not apply in cases of gross misconduct and argued that Ade’s acquittal is irrelevant to his civil liability for employment breaches and urged the Court to enter summary judgment for N12.2m based on the Defendant’s admission.
In a well-considered judgment, the presiding Judge, Justice Elizabeth Oji held that the Melrose Books & Publishing argument does not take into consideration the progressive development of labour law, which now frowns at prolonged suspensions, indefinite suspension without pay and keeping employees in limbo, without determining their status.
The Court stated that Melrose Books & Publishing has not established a right to suspend the defendant without pay, which means that Ade was never terminated; and continued to be the staff of the Claimant, while on suspension.
Justice Oji reasoned that Melrose Books & Publishing did not show that any of its administrative panel or machinery found that Ade failed, refused or neglected to lodge monies he received on behalf of the firm, that Melrose Books & Publishing's allegations are neither founded on any administrative nor judicial determination.
“There is no evidence that the Defendant’s request to audit the Claimant’s statement of account was adhered to, to enable the Defendant conclude the reconciliation in question before he was suspended on 28th October 2015(7 days after). In the circumstances, I am of the opinion that the Claimant’s evidence has not established entitlement to this relief.” The Court ruled
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