The National Industrial Court of Nigeria, Lagos Judicial Division, has ruled that Chi Limited wrongfully terminated the employment of Mr. Bodunrin Akinsuroju, awarding him ₦2 million in general damages and ₦200,000 in costs, while ordering him to return all company property in his possession or pay its assessed market value.
Delivering judgment, Hon. Justice Sanda Yelwa held that the company breached the terms of the employment contract by failing to provide the required 30 days’ notice or payment in lieu of notice.
“When employers and employees put their terms of employment in writing, both parties must follow those terms strictly,” Yelwa said.
Akinsuroju had argued that the allegations of misconduct levelled against him were unfounded. He told the court that the disciplinary committee process was unfair and that his termination was effected without just cause or compliance with the terms of his employment.
In its defence, Chi Limited maintained that it was entitled to terminate Akinsuroju’s employment, contending that the decision was lawful and consistent with both the employment contract and the company’s Code of Conduct.
However, counsel to Akinsuroju submitted that the alleged breaches were not proven and that the termination letter took immediate effect without the mandatory 30 days’ notice or payment in lieu, as stipulated in the letter of appointment and the Employee Handbook. He urged the court to declare the termination wrongful and grant the reliefs sought.
In his judgment, Yelwa affirmed that although employers retain the right to discipline employees, any reason advanced for termination must be substantiated to the satisfaction of the court. He noted that the court was not persuaded that the alleged breaches of the Code of Conduct had been established against Akinsuroju.
The judge further observed that the contract required either party, after confirmation of appointment, to give 30 days’ notice or salary in lieu. There was no evidence that Chi Limited had complied with this provision.
“Failure to comply with this key condition amounted to a breach of the employment contract, rendering the termination wrongful,” he held.
The court, however, declined some of Akinsuroju’s claims. Yelwa rejected his request for withdrawal of the termination letter and dismissed his claim for salaries and allowances from December 2022 to date, explaining that such claims constitute special damages, which must be specifically pleaded and strictly proved.
