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The Presiding Judge, Calabar Judicial Division of the National Industrial Court, Hon. Justice Sanusi Kado, has ordered Japaul Gold Ventures and Japaul Mines Ltd to pay Mr. Asuquo the sum of N761, 400 (Seven Hundred and Sixty One Thousand, Four Hundred Naira Only) arrears of salary from September, 2015 to 27th August 2016; and the sum of N350,000.00 (Three Hundred and Fifty Thousand Naira) terminal benefits, and the sum of N300,000.00 (Three Hundred Thousand naira) cost of action within 30 days.
The Court held that although there was no formal termination of Mr Asuquo's employment, the surrounding facts and circumstances established that the employment relationship came to an end in August 2016, and Mr Asuquo’s entitlements were limited to the period he remained in service.
From facts, the Claimant, Mr Asuquo had stated that he was employed by Japaul Gold and subsequently deployed to Japaul Mines at its quarry site to serve as a Community Liaison Officer. Mr Asuquo maintained that he worked continuously for over eleven years and that despite the absence of any formal termination of his employment, the Company stopped paying his salary from September 2015.
Mr Okon Asuquo further relied on the company's Conditions of Service to contend that he was entitled to salary arrears, terminal benefits and other entitlements accruing from his employment, insisting that his employment relationship with the companies subsisted beyond the period alleged by them.
In defence, Japaul Gold Ventures and Japaul Mines Ltd maintained that the employment of Mr Asuquo was converted to a renewable fixed-term contract in 2015 and was subsequently terminated in 2016.
The defendants' counsel also argued that both companies are separate legal entities and that Japaul Gold Ventures could not be held liable for obligations arising from the employment relationship between Mr Asuquo and Japaul Mines Ltd, and that they are distinct and liability cannot be automatically transferred from one to the other.
The Companies averred that all entitlements due to Mr Asuquo had been paid and that he was not entitled to any further salaries or terminal benefits, and urged the court to dismiss the case in its entirety.
In opposition, Mr Asuquo’s Counsel, Victor Okon Esq, argued that his client was employed by Japaul Gold Ventures and assigned to Japaul Mines Ltd, which operates as a subsidiary of Japaul Gold Ventures. Counsel further submitted that there was no valid evidence establishing the termination of his employment and maintained that Japaul Gold and Japaul Mines remained indebted to him for unpaid salaries and benefits. Counsel urged the Court to grant all the reliefs sought by his client.
Delivering judgment after careful evaluation of the submissions of the parties, the evidence adduced, and the exhibits tendered, Hon. Justice Sanusi Kado rejected the contention that Japaul Gold Ventures was improperly joined in the suit, holding that Mr Asuquo was employed by Japaul Gold Ventures and rendered services to Japaul Mines Ltd, thereby making both Companies proper parties before the Court.
Justice Sanusi Kado held that the Conditions of Service of the Company were applicable to employees of both Japaul Gold Ventures and Japaul Mines Ltd and could therefore be relied upon in determining Mr Asuquo's entitlement to terminal benefits.
The Court found that while there was no formal termination of Mr Asuquo's employment, the evidence before it supported the conclusion that the employment relationship effectively ended in August 2016. The Court awarded Mr Asuquo entitlement to salary arrears for the period between September 2015 and 27 August 2016.
However, the Court declined to award salaries beyond August 2016, holding that, once the employment relationship had effectively ended on that date, Mr Asuquo could no longer claim salaries for periods after the cessation of employment.
The Court further found that the proven period of Mr Asuquo's service was from May 2011 to August 2016, amounting to five years and four months, rather than the period he claimed.
Justice Sanusi Kado held that under the applicable Conditions of Service, an employee who served for five years was entitled to five months' gross salary as terminal benefit. Consequently, Mr Asuquo was awarded the sum of N350k as terminal benefits.
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