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Court Orders UBA To Pay N27m Damages To Ex-Worker For Unlawful Termination Of Employmentbank

by ReportersAtLarge
February 9, 2023
in News
Reading Time: 3 mins read
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UBA - United Bank for Africa
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The National Industrial Court of Nigeria, Asaba Division, Delta State, has ordered United Bank for Africa (UBA) Plc to pay N27,011,356.56 in general damages to its ex-worker, Richard Okagbare, for the unlawful termination of his job.

Justice Dr. J. I. Targema issued the order, describing Okagbare’s dismissal as unlawful and malicious.

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In the decision made on January 18, 2023, the judge also ordered the bank to pay the money within 30 days of the ruling.

Okagbare, through his lawyer, N. W. Ogbogu, dragged the bank before the court in a suit marked NICN/ASB/47/2020, wherein he sought the following reliefs: “A declaration that the termination of his employment by the bank, via a letter dated April 20, 2016, is a breach of the bank’s Group Staff Handbook and Compensation Policy for loss of earnings.’’

He noted that it was unconstitutional and violated international best practices as enjoined by the International Labour Organization’s Termination of Employment Convention of 182 No. 158 and Recommendation 166 (R 166 Termination of Employment Recommendation 1982 No. 166) of the ILO’s International Standard Practice (mainly but not limited to Articles 4, 5, 6, and 7).

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“An order for payment of a total sum of N133,006,862.64 million, being his unpaid salary for the month of April 2016; loss of earnings from May 2016 to March 2025, when he would have retired at 60 years pursuant to the defendant’s group Handbook; leave encashment for nine years; and leave allowance for nine years.”

Alternatively, the claimant asked the court for an order to pay N92,104,447,27 million, his unpaid salary for April 2016 under the Defendant Bank’s Compensation Policy and the cost of instituting the suit.

An order for payment of 10 per cent interest on the judgment sum from the date of judgment until it is liquidated.

The claimant during the trial told the court that he was a worker with the bank sometime in 2016, when his employment was terminated in questionable and unfair circumstances. He added that he was paid the paltry sum of N441,107.66 without any payment in place of notice and terminal benefits following the defendant’s Group Staff Handbook and Compensation Policy for loss of earnings.

He told the court that his plea for the bank to withdraw the termination letter and allow him to resign was refused. According to the banking industry’s customs, when a bank worker’s appointment is terminated or dismissed, the possibility of finding employment in the industry is frustrating.

However, UBA Plc, through one of its staff members, Mr James Ebako, testified as a defendant witness while being led by Mr G. C. Igbokwe (SAN), told the court that the claimant was an employee of UBA until 2014/2016, when the bank terminated his appointment.

He stated that before the termination, the claimant held various positions during his employment with the bank and also had disciplinary records while in the bank’s employment.

Ebako further told the court that the various positions held by the claimant had specific tasks. In contrast, the failure to meet the task led to disciplinary measures against the claimant after each task was measured and monitored by the bank’s performance appraisal system.

The witness stated that the performance appraisal system is holistic and gives a clear indication of the performance of each worker, adding that the appraisal outcome is communicated to the staff members at the end of each appraisal circle adopted.

He also said that the claimant performed poorly for five consecutive appraisal circles, after which he was advised to resign in April 2016 for his consistently poor performance in line with the defendant’s Human Resource Disciplinary Process and Sanction Policy.

Ebako further stated that the claimant failed and/or refused to tender his resignation as advised by the bank within the recommended period. He was thereafter issued a letter of termination in line with the defendant’s disciplinary process and sanctions policy.

Justice Targema after listening to the parties’ arguments and perusing the processes and exhibits tendered before the court and citing several authorities, held that “in all, the claimant’s case succeeds only on the terms already indicated.

“Accordingly and for the avoidance of doubt, I make the following declaration and order: “It is declared that the termination of the claimant’s employment with the UBA by the Defendant Bank via a letter dated April 20, 2016, is a breach of the Defendant’s Group Staff Handbook, Terms and Conditions of the claimant’s appointment. It is unconstitutional, malicious, and unlawful.

“It is hereby ordered that the defendant bank (UBA Plc) shall within 30 days of this judgment pay to the claimant the sum of twenty-seven million, eleven thousand three hundred and fifty-six naira fifty-six kobos (N27,011,356.56), only being general damages for unlawful dismissal as well as damages for refusing to issue work reference to the claimant. Judgment is entered accordingly. I make no order as to cost.”

Tags: Business NewsCOURTNational Industrial Court of NigeriaUnited Bank for Africa
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