Industrial Court Faults Firm on Indefinite Suspension, Orders Salaries Payment Within 30 Days
The Presiding Judge, Ibadan Judicial Division of the National Industrial Court, Hon. Justice Dele Peters has declared the purported indefinite suspension of Mr. Dada from the service of Dee-Pee Global Packaging which has lasted over one year and eight months and continuing, without payment of salary as unfair labour practice, and wrongful determination of appointment.
The Court stated that it is an unfair labour practice for an employer to deny an employee his salary and allowances under the guise of exercising some form of disciplinary control through indefinite suspension.
Justice Dele Peters ordered Dee-Pee Global Packaging to pay Mr Dada the sum of Five Hundred and Four Thousand Naira (=N= 1,260,000) only being the arrears of salaries and allowances before and during the period of the illegal and wrongful suspension, 1st October 2020 till the date of this judgment January 2025, and the sum of N200k cost of action within 30 days.
From facts, the claimant, Mr Dada, submitted that he was placed on an indefinite suspension on 3 October 2020, that he has not been recalled since then, that he was not paid any salary, and that his employment has not been terminated.
Under cross-examination, Mr. Dada stated that he was not aware that the Company he worked for had shut down its operations; he did not visit Dee-Pee Global Packaging’s premises, and he had not had another job since he was suspended.
In defence, the Defendant, Dee-Pee Global Packaging, averred that Mr Dada was indefinitely suspended for misconduct, which caused the defendant economic loss and consequently led to the company shutdown.
Learned Counsel submitted that one of the ways of determination of contract of personal service or employment is by the death of either party and that the shutdown of the firm without resuscitation took her to the brink of winding up to date; that Mr Dada did not prove how he arrived at the calculation of his salaries and allowances, and urged the Court to dismiss the case in its entirety.
In opposition, Mr. Dada’s learned counsel, Omoniyi Odeyemi with M.O. Ibrahim & T.M. Odeyemi argued that since indefinite suspension does not amount to termination of employment, the implication is that their client remains in continuous employment with Dee-Pee Global Packaging until he is recall or his employment is formally terminated or dismissed, and urged the Court to grant the reliefs sought.
In reply, learned Counsel to the firm submitted that indefinite suspension without pay can amount to constructive dismissal and urged the Court to dismiss Mr Dada’s case in its entirety.
Delivering judgment after careful evaluation of the submissions of both parties, the Presiding Judge, Justice Dele Peters stated that suspension even where it is stated to be indefinite is neither demotion from rank nor termination of contract of employment.
The Court reasoned that an employer suspending his employee may impose terms of the suspension but in a general sense suspension of an employee from work only means the suspension of the employee from performance of the ordinary duties assigned to him by virtue of his office.
Justice Peters maintained that nothing in the contract between the parties confers the firm with the power to suspend or to suspend indefinitely without pay as the Company has done, and stated that the conduct of Dee-Pee Global is nothing short of denying Mr. Dada completely of his means of livelihood.
