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Hon. Justice Joyce Damachi of the Lagos Judicial Division of the National Industrial Court has declared the indefinite suspension without pay and termination of the employment of Mr Benedict by R. A. Trading & Investment as unlawful and wrongful.
Justice Damachi held that an employer may terminate a contract of employment, and such termination must be carried out in accordance with the agreed terms of the contract.
The Court ordered R.A. Trading & Investment to pay Mr Benedict the sums of N1.6m as terminal benefits, N2.9m as 13 months' salaries during his unlawful indefinite suspension without pay, and N225k as salary in lieu of notice within 30 days.
From facts, the Claimant, Mr Benedict, had submitted that he was employed by R.A. Trading & Investment as an Accountant and had been discharging his duty as an Accountant efficiently until he was given a query, replied to the query, but was thereafter placed on an indefinite suspension without pay before his employment was terminated during the pendency of the suit without payment of his accrued entitlements.
Mr Benedict averred that despite repeatedly seeking clarification on the outcome of the investigation and his employment status, R.A. Trading & Investment neither recalled him from suspension nor paid his salaries and benefits. Instead, the company terminated his employment while the action was pending.
In defence, R. A. Trading & Investment alleged that Mr Benedict was negligent in handling transactions, that his conduct caused the company substantial financial loss, and that the indefinite suspension was issued to facilitate investigation into the allegations.
The Company also disputed the quantum of Mr Benedict’s entitlement and filed a counterclaim but failed to lead evidence in support.
In opposition, Mr Benedict’s counsel, Chukwuma Cosmos Esq, argued that R.A. Trading & Investment admitted his entitlement to terminal benefits in the letter terminating his client's employment, that the contract of employment governed the parties' rights and obligations, and urged the court to grant the reliefs sought.
In a well-considered judgment, Hon. Justice Joyce Damachi held that Clause 7 of the contract of employment between the parties only permitted suspension without pay for a maximum period of two weeks. In contrast, R.A. Trading & Investment kept Mr Benedict on an indefinite suspension without pay for over one year.
The Court held that the prolonged suspension of Mr Benedict was done in flagrant breach of the contract of employment and amounted to an unlawful and wrongful suspension.
The Court found that there was no evidence that R.A. Trading & Investment paid Mr Benedict his accrued entitlements or one month's salary in lieu of notice as required by the contract of employment, and consequently declared the termination unlawful.
Justice Joyce ordered that all sums awarded be paid within 30 days, failing which they shall attract interest at the rate of 10% per annum until fully liquidated.
