Industrial Court Faults Firm on Redundancy Action, Awards N750k Damages
The Presiding Judge, Lagos Judicial Division of the National Industrial Court, Hon. Justice Maureen Esowe has declared the termination by redundancy of one Mr Paul’s contract of employment by Pacific Diagnostics Limited in breach of the provisions of the Labour Act as wrongful.
The Court ordered Pacific Diagnostics Limited to pay Mr Paul the sum of N750,000 (Seven Hundred and Fifty Thousand Naira) as damages; and the sum of N200,000.00 (Two Hundred Thousand Naira only) cost of action.
From facts, the Claimant- Mr Paul had submitted that his removal from the Pacific Diagnostics employment via redundancy claim amounts to wrongful termination on the ground that the company flouted the Labour Act and the international best practices.
In defence, the defendant- Pacific Diagnostics Limited maintained that the company complied with all the requirements as stipulated in the terms of the contract with Mr Paul by availing him of his Severance/Redundancy pay and other entitlement.
The company further averred that the principle of first in last out claimed by Mr Paul does not apply because Mr Paul is the only person who occupies the category and the role affected by the redundancy. Learned Counsel to Pacific Diagnostics Limited maintained that Mr Paul has not placed evidence before the Court that none of his claims was part of his contract of service, and urged the court to dismiss the case in its entirety.
In opposition, the learned counsel to Mr Paul submitted further that Pacific Diagnostics refused to negotiate a redundancy pay with his client despite his demands through his Solicitor and also that severance pay paid by the firm is distinct from redundancy pay; and failure to pay the latter makes the termination wrongful.
Delivering judgment after careful evaluation of the submissions of both parties, the presiding Judge, Justice Maureen Esowe held that when an employer relies on redundancy to disengage the services of an employee, the burden is on the employer to satisfy the Court on the reason and furnish facts or law in support of his action.
The Court reiterated that the best bet is for employers to adhere strictly to the laid down procedures in the Act or adhere to the Redundancy Policy as contained in the terms of Employment.
Justice Esowe stated that Pacific Diagnostics Limited’s insistence that it complied with the provisions of the Labour Act on redundancy did not lead to evidence to show that Mr Paul had accepted its conditions for redundancy.
However, the Court held that Mr Paul’s three (3) years’ salary claim as damages for wrongful termination of his employment has not been supported and justified by the facts, circumstances and evidence placed before the Court. Still, Justice Esowe reiterated that equity will not suffer a wrong to be without a remedy.
The Court declared that the termination by redundancy of the Claimant’s contract of employment by the Defendant was done in breach of the provisions of section 20 (1) (c) of the Labour Act is wrongful.
