Hon. Justice Anthony Ubaka of the Lagos Judicial Division of the National Industrial Court has delivered judgment in favour of Mrs. Nkechi, a former employee of Sterling Bank. The court ordered the bank to pay her ₦10.45 million as outstanding gratuity for her years of service, and an additional ₦300,000 as cost of action.
The court further directed that if the sums are not paid within 30 days, they shall attract 10% interest per annum until fully liquidated.
Mrs. Nkechi was employed by Magnum Trust Bank in 2000, and her employment was transferred to Sterling Bank in 2006 following a merger.
She served diligently for over 20 years, rising to the position of Assistant Manager, before resigning in December 2020.
Mrs Nkechi contended that Sterling Bank paid part of her terminal benefits, her gratuity was excluded, prompting her to demand payment through her solicitors.
In defence, Sterling Bank denied allegations, arguing that gratuity had been abolished under the 2015 revised Staff Handbook.
It claimed the revised handbook was communicated to all staff via email and replaced the earlier handbook relied upon by Mrs. Nkechi.
Counsel for Sterling Bank maintained that she had been fully paid her entitlements and had no legal basis for claiming gratuity.
Mrs. Nkechi’s counsel, U.C. Ikegbule Esq, argued that the bank failed to prove that the 2015 Staff Handbook was communicated to his client and contended that accrued rights cannot be unilaterally extinguished without proper notice.
In her ruling, Justice Ubaka held that employers have the right to review policies, but such changes must be properly communicated to employees before they can take effect.
Evidence showed Mrs. Nkechi was not aware of the 2015 handbook and did not receive the email abolishing gratuity.
Sterling Bank failed to discharge the burden of proving that she was notified of the revised handbook.
The court concluded that Mrs. Nkechi’s entitlement to gratuity under the earlier Staff Handbook subsists and cannot be extinguished without proper notice.
Justice Ubaka stated: “The burden of proving that the claimant was aware of the new employee handbook lies on the Defendant, and failure to discharge the same is fatal to its case. To my mind, the defendant has a duty to pay the balance of the calculation of the claimant’s gratuity.”
… Industrial Court Orders Sterling Bank to Pay Ex‑Staff ₦10.45m Gratuity, ₦300k Costs … Naijaonpoint.
