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Hon. Justice Rabiu Gwandu of the Lagos Judicial Division of the National Industrial Court has declared the termination of Mrs. Rose from the service of Union Bank of Nigeria as wrongful.
The Court held that the termination of Rose's employment for services no longer required was done in violation of the terms of employment between the parties and Article 7 of the ILO Termination of Employment Convention.
Justice Gwandu stated that Rose’s Contract of Service permits either party to determine the employment upon notice or payment of salary in lieu, Union Bank did not prove by credible evidence that Rose was paid salary in lieu of notice.
From facts, claimant- Mrs. Rose had maintained that the allegation against her had been resolved in her favour and could not lawfully form the basis of her disengagement. She insisted that the Bank acted in bad faith and failed to comply with the applicable conditions of service, and she sought gratuity arrears, refund of deductions, damages, and other monetary reliefs.
Mrs. Rose averred that the termination of her employment for services no longer required was not in accord with her contract of employment and Article 7 of ILO Convention 1982 on Termination of Employment and the collective Agreement.
In defence, Union Bank of Nigeria contended that the employment termination of Rose was valid under the contract of employment and denied liability for the reliefs claimed.
The Union Bank argued that it only terminated Rose’s employment for service no longer required in accordance with the Contract of Service in tandem with the decisions of the Supreme Court, and urged the Court to dismiss the case in its entirety.
In a well-considered judgment, Justice Rabiu Gwandu reiterated that while the Employer, by common Law, can terminate the employment of its employee, the employer must, under ILO conventions and treaties, provide a reason for terminating the services of its employee under the new dispensation.
Justice Gwandu reasoned that, at the point the Union Bank accused Rose, reported her to the Police, charged and arraigned her before a competent Court, especially after she was found not guilty by the Court, it removed the Union Bank's right to terminate Rose's employment upon resumption without reason.
The Court held that Union Bank of Nigeria failed to comply with the terms of Rose’s contract of employment and applicable international best practices.
On the redundancy claim, Justice Gwandu held that Mrs. Rose did not establish that her position was declared redundant, and her claims founded on redundancy and the 150 per cent exit package were refused.
The Court declared that Mrs Rose was underpaid and that Union Bank is in arrears to her gratuity in the sum of N14.4m, less N5.9m already paid. The outstanding balance was ordered to be paid.
On the deductions of N39,963 as unearned housing allowance and N99,555 as loan repayment, the Court found that Union Bank failed to justify them with credible evidence, and both deductions were declared unlawful, and the Bank was directed to refund the sums to Rose.
Consequently, Union Bank of Nigeria was ordered to pay Mrs. Rose one month's salary in lieu of notice, the outstanding gratuity arrears, and the refunded deductions.
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