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Hon. Justice Joyce Damachi of the Lagos Judicial Division of the National Industrial Court has declared the action of the Nigeria Inter-Bank Settlement System seizing Mr Kayode's salary in lieu of notice of termination, compulsory staff savings and the year 2019 profit share for partial fulfilment of a purported debt as wrongful, unlawful, and oppressive.
The Court held that the Nigeria Inter-Bank Settlement System needed not only to have made upfront payments, but the relevant conditions for repayment in certain circumstances ought to have also been provided by the defendant with the necessary terms applicable.
Justice Damachi granted an order directing the Nigeria Inter-Bank Settlement System to pay Mr Kayode the sum of N8.2m, being salary in lieu of notice, 2019 profit and compulsory staff savings, which were seized by the Defendant in part of the purported debt, and the sum of N500k cost of action within 30 days.
From facts, the Claimant- Mr. Kayode had submitted that he was employed by the Nigeria Inter-Bank Settlement System in 2014, and he was abruptly informed by phone and email that his services were no longer required on 2nd August 2019.
Mr Kayode averred that during his employment, the Inter-Bank Settlement System paid part of his salary upfront (housing, furniture, estacode), and following his employment termination, the Defendant claimed he owed N18.4m as “unearned upfront,” reducible to N7.5m if he returned his official car, which he did.
Mr Kayode further stated that despite seizing his N8.2m culminating from payment in lieu of notice, 2019 profit and compulsory staff savings, the Inter-Bank Settlement System continued to allege he owed N7.1 m, leaving him penniless at the time of dismissal, and he was threatened with legal action for failure to pay.
In defence, the defendant- Nigeria Inter-Bank Settlement System averred that Mr Kayode’s employment was properly terminated in accordance with due process, and not merely by a phone call as alleged.
The Nigeria Inter-Bank Settlement System argued that Mr Kayode was fully aware of his obligations regarding unearned upfront payments, which were discretionary benefits granted at the employee’s request and repayable upon exit, whether voluntary or involuntary.
The Inter-Bank Settlement System denies ever communicating to third parties that Mr Kayode was indebted to it. It reiterates that upfront allowances were discretionary and conditional upon repayment if employment was prematurely terminated.
The Nigeria Inter-Bank Settlement System Counter-Claimed for the sum of N10,651,215.08(Ten Million, Six hundred and Fifty-One Thousand, Two hundred and Fifteen Naira, Eight Kobo) as balance due on upfront allowances and the sum of N5m (Five Million Naira) as Solicitors' fees.
In opposition, the counsel to Mr Kayode argued that since it was the same Nigeria Inter-Bank Settlement System that chose to pay his allowances upfront in January 2019, then sacked him in August 2019. The allowances were used for payment of rent and purchase of furniture, and there was no way he could get them back, and urged the Court to dismiss the Inter-Bank Settlement System counter-claim and grant the reliefs sought in the interest of justice.
In a well-considered judgment, the Presiding Judge, Justice Joyce Damachi held that the Nigeria Inter-Bank Settlement System has left the court in suspense and to speculate on how the upfront payments were paid and under the exact conditions it was to be repaid.
The Court reasoned that there was no consensus adidem between the parties in respect to the payment and refund upon premature exit from the defendant company, and that an enforceable agreement between the parties for repayment, refund of upfront payment in terms of housing, furniture and leave/estacode allowance is yet to be consummated.
Justice Damachi declared that Mr Kayode is not and cannot be indebted to the Nigeria Inter-Bank Settlement System as a result of the termination of his employment after voluntary upfront payment of part of his salary was seized by the Nigeria Inter-Bank Settlement System.
The Court ruled that it was wrong, unlawful, and oppressive for the Nigeria Inter-Bank Settlement System, which terminated Mr Kayode's appointment in August 2019 after voluntarily paying part of his salary upfront in January 2019 to turn around and declare the upfront payment as debt.
Justice Damachi ruled that the action of the Nigeria Inter-Bank Settlement System to deduct Mr Kayode's entitlement upon termination of employment amounted to self-help without recourse to proper and legitimate means of recovering money it believed were due to him.
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