The Lagos Judicial Division of the National Industrial Court has declared the indefinite suspension without pay and subsequent termination of the employment of Mr. Benedict, a former accountant with R.A. Trading & Investment, as unlawful and wrongful.
Delivering judgment, Justice Joyce Damachi held that although an employer has the right to terminate a contract of employment, such termination must be carried out strictly in accordance with the agreed terms of the contract between the parties.
The court ordered R.A. Trading & Investment to pay Mr. Benedict ₦1.6 million as terminal benefits, ₦2.9 million representing 13 months’ salaries during his unlawful indefinite suspension without pay, and ₦225,000 as salary in lieu of notice, all within 30 days.
Mr. Benedict had told the court that he was employed by the company as an accountant and had carried out his duties efficiently until he was issued a query. He said he responded to the query but was later placed on indefinite suspension without pay before his employment was terminated while the suit was already pending.
He further averred that despite repeatedly seeking clarification on the outcome of the company’s investigation and his employment status, R.A. Trading & Investment neither recalled him from suspension nor paid his salaries and accrued benefits.
In its defence, the company alleged that Mr. Benedict was negligent in handling transactions and that his conduct caused it substantial financial loss. It claimed that the indefinite suspension was issued to allow investigation into the allegations.
R.A. Trading & Investment also disputed the amount claimed by Mr. Benedict and filed a counterclaim, but failed to lead evidence in support of its case.
Opposing the company’s position, counsel to Mr. Benedict, Chukwuma Cosmos, Esq., argued that R.A. Trading & Investment had admitted his client’s entitlement to terminal benefits in the letter terminating his employment. He submitted that the contract of employment governed the rights and obligations of the parties and urged the court to grant the reliefs sought.
In her judgment, Justice Damachi held that Clause 7 of the contract of employment only permitted suspension without pay for a maximum period of two weeks. The court found that the company kept Mr. Benedict on indefinite suspension without pay for over one year, in clear breach of the employment contract.
The court held that the prolonged suspension was unlawful, wrongful and contrary to the terms agreed by the parties.
Justice Damachi also found that there was no evidence that the company paid Mr. Benedict his accrued entitlements or one month’s salary in lieu of notice as required under the contract.
The court consequently declared the termination of his employment unlawful and ordered that all sums awarded must be paid within 30 days, failing which they would attract interest at the rate of 10 per cent per annum until fully liquidated.
The post ”Court Declares R.A. Trading’s Suspension, Termination Of Accountant Unlawful” — Orders Payment Of ₦4.725m Benefits, Salaries, Notice Pay appeared first on TheNigeriaLawyer.
