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The court has exclusive jurisdiction in civil causes and matters relating to or connected with any labour, employment, trade unions, industrial relations and matters arising from workplace, the conditions of service, including health, safety, welfare of labour, employee, worker and matter incidental thereto or connected therewith.

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[Trending] Industrial Court Orders Firm to pay Ex-Staff 7 Years Gratuity within 21 days


1745 Tuesday 22nd October 2019



Abuja---His Lordship, Hon. Justice K. D. Damulak of the National Industrial Court sitting in Abuja has declared the employment termination of MR SEDI ISEME by VITAL PRODUCTS PLC as wrongful, ordered payment of seven years gratuity and 100,000 cost of action within 21 days.


The court held that termination of the claimant was not for theft or fraud but for services not required and entitled to gratuity in line with the Employees handbook.


The claimant sought against the defendant for a declaration that the purported disengagement from service by the defendant was null and void, An order of this honourable Court compelling the defendant to pay to the claimant all his entitlements as contained in the lists of outstanding salaries, allowances, unpaid salaries and severance packages and the sum of five million naira (N5,000,000) as damages for wrongful termination of employment among others.


From facts, the claimant worked as a sales representative to the defendant from 27th October 2010 to on 27th October 2017 when he was disengaged Via Email. 


The defendant contended that as at the time of making the Claim, the Defendant was owed well over the sum of N7,000,000 on goods delivered to various customers on the orders of the Claimant, and also, the heads of the claims fall outside the reimbursable expenditures of the claimant.


The claimant maintained that it was wrong for the Defendant to hinge the payment of his entitlement on the indebtedness of the Defendant’s customers after he has been relieved of duties. 


The claimant further posited that the defendant violated the agreement in disengaging him without recourse to the terms of employment and did not accuse him of any wrongdoing at any time, and having worked for the defendant from 2010 to 2017, his entitled to severance benefit as contained employees handbook.


In response, the defendant witness testified that the Defendant is willing and able to pay unto the Claimant all legitimate claims he may have if he recovers all the sums outstanding to his name and office that the termination of the employment of the Claimant was not wrongful.


On the issue of outstanding expenses; counsel submitted that the Claimant has not sufficiently proved to the satisfaction of the court that the Defendant has an obligation to pay him the sum claimed.


In an argument, learned claimant counsel submitted that if the court holds that the termination of the Claimant carried out was wrongful, this Court has powers to hold that the claimant’s disengagement be converted to retirement and all his terminal benefits as contained in the Human Resources Policy Paid to him.


Delivering the Judgment, the presiding Judge, Justice Damulak expressed thus;


“It is not in contention that the claimant was not given notice. I find that the claimant was entitled to notice of disengagement which was not given to him. This is in violation of the terms of employment and it is therefore wrongful but not null and void.


“The fact that the claimant computed and made a demand on the defendant is not enough prove of the claim in the demand. Evidence must be led in court to prove what is in the demand.


“The termination of the claimant was not for theft or fraud but for services not required so he is entitled to gratuity to be calculated per Employees handbook. I so hold.


In all, the court ordered the defendant to pay the claimant the sum of N19, 694.00 one month basic salary in lieu of notice, the sum of N206, 787.00 gratuities for seven years of service and N100, 000.00 cost of action within 21 days.