Industrial Court Awards N50m Damages Against Oil Firm
Hon. Justice (Prof) Elizabeth Oji of the Lagos Judicial Division of the National Industrial Court has declared the refusal and neglect by Total Nig. Ltd to issue letters of employment to Mr Odah Ezekiel and 3 others (suing for themselves and on behalf of disengaged security employees) despite repeated demands without success as illegal, unlawful, unfair labour practice and breach of international best practices and a violation of the labour Act.
The Court declared the continuous refusal by the Total Nig. Ltd to pay Mr. Odah Ezekiel and others their terminal benefits after summarily downsizing them since 2014 and 2015 from its employment after many years of meritorious service as wrongful, illegal, unfair labour practice and breach of international best practices and therefore unconstitutional, null and void.
Justice Oji ordered Total Nig. Ltd to pay Mr Odah Ezekiel and others the sum of N50m aggravated and exemplary damages for subjecting them to labour slavery, unfair labour practice, ill-treatment and neglect in the manner they were unilaterally and illegally transferred without their consent and the sum of N5m cost of action within 30 days.
From facts, the Claimants- Mr. Odah Ezekiel and others instituted the case against Total Nig. Ltd and 5 others after failed attempts to resolve the issue of who should pay them their end-of-employment entitlements after serving for 15 years.
Mr Odah Ezekiel and others had averred that they were employed by Total Nig. Ltd following the vacancy advert they did 15 years back and were not issued any employment letter.
In defense, the 1st Defendant- Total Nig. Ltd alleged that Mr Odah Ezekiel and others were employees of the private security firms contracted to them and urged the court to dismiss the case in its entirety.
It is the case of the 3rd Defendant- Bemil Nigeria Limited that Total Nig Ltd was the Claimants’ employer and merely engaged her to carry out supervision of the Claimants and ought not to have been joined in the case since they were not their employer.
However, the 4th Defendant- Halogen Security Nigeria Limited admitted employing 5 of the disengaged staff under its contract with Total Nig Ltd entered in 2007 which raises doubt that the Oil firm employed the Claimants because of the evidence that Mr Odah Ezekiel and others were already working for Total Nig Ltd before 2007 when the 4th Defendant came on board.
Total Nig Ltd filed a notice of preliminary objection on the ground, among others, that there is no privity of contract between it and the disengaged staff on record, that what existed was at best a “triangular employment relationship”, but contends that assuming that relationship existed between it and the Claimants, the Hon. Minister of Labour & Productivity’s Guidelines on Labour Administration on Contract Staffing/Outsourcing in the Oil and Gas Sector forbids allow triangular employment.
In opposition, Mr Odah Ezekiel and others averred that Total Nig Ltd was fully aware, involved, and participated in the recruitment, deployment and termination of their employment.
They submitted that their transfers by Total Nig Ltd to the private security companies severally without their consent and valid endorsement by an appropriate labour officer were not justified and that the Oil firm is in breach of the Labour Act and are liable not only to damages but also ought to be held accountable as their true employers.
Delivering judgement after careful evaluation of the submission of both parties, the presiding Judge, Justice Elizabeth Oji held that Hon. Minister of Labour & Productivity’s Guidelines on Labour Administration on Contract Staffing/Outsourcing could not have intended that Companies in the Oil and Gas Sector, or any other sector for that matter, are to engage Nigerian workers and toss them around, without any form of documentation as to the nature, purpose or intent of the relationship, from either the companies or any purported contractor or recruiter.
The Court rejected Total Nig Ltd’s assertion of triangular employment and held that if a triangular employment or outsourcing relationship was intended by the 1st Defendant; it did not achieve that as the 2nd to 6th Defendants did not issue any contract of employment to the disengaged staff.
Justice Oji declared that the failure of Total Nig Ltd to issue letters of employment to Mr. Odah Ezekiel and others, three months after their employment, is in breach of the Labour Act, unfair, and unlawful.
The Court described the manner in which Mr. Odah Ezekiel and others were handed over from one supervisor to another, without information or notice as callous and unfair labour practice.
Justice Oji held that Mr Odah Ezekiel and others are entitled to all their terminal benefit for the number of years each of them has put in while in the employment of Total Nig Ltd but failed to lead oral evidence on what the terminal benefit should be, or how they arrived at the claimed sum of N10,000,000.00 for each of them.
