The National Industrial Court of Nigeria sitting in Port Harcourt has ordered Ohenmerge Company to pay its former employee, Mrs. Victoria Obioha, ₦2 million in general damages for breach of her employment contract, as well as her outstanding salaries for March and April 2022.
Delivering judgment, Justice Zaynab Bashir held that although the company provided evidence demonstrating compliance with statutory obligations—such as pension remittances, Pay-As-You-Earn (PAYE) tax deductions, and group life insurance coverage—it nevertheless breached the employment contract by failing to pay Obioha’s earned salaries for the two months.
Mrs. Obioha had earlier told the court that her employment with Ohenmerge Company was terminated without notice and that she had been denied annual leave for four years. She further alleged that the company failed to provide proof of pension remittances, tax deductions, and life insurance coverage, as stipulated in her employment letter.
The claimant asked the court to award her ₦50 million as damages for breach of contract, ₦30 million as severance benefit, ₦20 million as damages for emotional and psychological trauma, and ₦20 million as exemplary damages. She also sought payment of her salaries from March 2022 until the final determination of the suit.
Mrs. Obioha maintained that despite diligently performing her duties, the company withheld her salary and unlawfully dismissed her following exchanges regarding a proposed review of her contract conditions.
In its defence, Ohenmerge Company told the court that Obioha was dismissed for alleged incompetence, habitual lateness, absenteeism, and negligence. The company stated that she was issued a 60-day notice of dismissal and informed of the reasons for the decision.
The firm also tendered documents showing pension remittance schedules, PAYE tax remittances, and evidence of Obioha’s enrolment in a group life insurance policy, insisting that it had complied with all statutory and contractual obligations.
After reviewing the pleadings, evidence, and submissions of counsel, Justice Bashir said the key issue before the court was whether Obioha had established her entitlement to the reliefs she sought.
The court held that evidence showed Obioha had been issued a 60-day notice of dismissal in February 2022 and that the notice clearly stated the reasons for her dismissal.
Justice Bashir further found that Ohenmerge Company produced documentary evidence confirming the remittance of pension contributions, PAYE tax deductions, and Obioha’s enrolment in a group life insurance policy. The court held that Obioha failed to prove that the company refused to provide proof of these remittances or that it had failed to comply with statutory obligations.
However, the court held that Ohenmerge Company breached the employment contract by failing to pay Obioha’s salaries for March and April 2022.
Justice Bashir stated that salary is consideration for work done and, once earned, cannot be withheld as punishment or leverage.
The court therefore awarded Obioha ₦2 million as general damages pursuant to Section 19(d) of the National Industrial Court Act 2006 and ordered Ohenmerge Company to pay her full salaries for March and April 2022.
