“Termination Was Wrongful” — Court Orders Julius Berger To Pay Severance Benefits, ₦800,000 Cost To 28 Former Workers

The Presiding Judge of the Port Harcourt Judicial Division of the National Industrial Court, Hon. Justice Faustina Kola-Olalere, has declared the employment termination of Mr Joseph and 27 others by Julius Berger as wrongful.

The Court also ordered Julius Berger Nigeria Plc to pay the sum of N110,389 to the 25 claimants whose monthly pay-slips are before the Court as severance benefits, being 7.5% of their monthly wages.

From facts, the claimants, Mr Joseph and 27 others, had instituted the action against Julius Berger, contended that after presenting their demands to Julius Berger and embarking on a strike following the failure of the company to meet their demands, their employment was terminated without notice and without payment of salaries in lieu of notice.

The former workers consequently sought declarations that the termination was wrongful and claimed payment of salaries in lieu of notice, hydrocarbon swamp allowance, terminal benefits, cost of litigation and interest.

In defence, Julius Berger contended that the employment relationship was governed by the Internal Conditions of Service executed between the company and the National Union for Civil Engineering, Construction, Furniture and Wood Workers and that there was no agreement to pay hydrocarbon swamp allowance to the former staffs.

Julius Berger further maintained that Mr Joseph and 27 others participated in an unauthorised strike action without the approval of their union and that under the applicable Conditions of Service, such conduct attracted dismissal without notice or terminal benefits.

The Company also argued that Mr Joseph and 27 others failed to establish any enforceable agreement entitling them to a hydrocarbon swamp allowance and urged the Court to dismiss the suit in its entirety.

In opposition, counsel to Mr Joseph and 27 others, Enahoro Dakare Esq, argued that Julius Berger failed to comply with the disciplinary procedure contained in the Internal Conditions of Service before determining his clients’ employment and submitted that the termination was unlawful and oppressive, and urged the court to grant the reliefs sought.

In a well-considered judgment, Hon. Justice Fautsina Kola Olalere held that the employment relationship between Mr Joseph and 27 others and Julius Berger was a private employment governed by the letters of employment and the Internal Conditions of Service agreed by the parties.

Justice Kola-Olalere held that the letters issued by Julius Berger expressly showed that the employment of Mr Joseph and 27 others was terminated and not dismissed, and that no reason was stated in the letters for the determination of their employment.

The Court stated that Julius Berger wrongfully backdated the effective date of the termination of Mr Joseph and 27 others and also failed to state any reason for the termination, which was contrary to international labour standards and best practices.

Justice Kola-Olalere held that Mr Joseph and 27 others were entitled to payment in lieu of notice and severance benefits under the applicable Conditions of Service, but failed to establish their claim for hydrocarbon swamp allowance due to lack of credible evidence of any agreement between the parties.

The Court as well dismissed Mr. Joseph and 27 others claim for N60.8m as accrued hydrocarbon swamp allowance and the claim for N5m as cost of litigation for lack of proof, awarded general costs of N800k in favour of Mr. Joseph and 27 others, and directed Julius Berger Nigeria Plc to pay within 30 days, failing which the sum shall attract interest at the rate of 10% per annum until fully liquidated.

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