The National Industrial Court of Nigeria, Port Harcourt Division, has ordered Shell Nigeria Exploration and Production Company and Shell Petroleum Development Company of Nigeria to jointly pay Uzodinma Aju Oworo ₦14.9 million, representing two years’ salary, as compensation for wrongful termination, after finding that the companies failed to state the reason for the termination.
Justice Faustina Kola-Olalere, in the judgment, awarded the compensation at the rate of ₦7,423,002 per annum for two years, amounting to ₦14,846,004, alongside ₦500,000 in costs. The court ordered the defendants to make the payments within 30 days.
The court held that Shell Petroleum Development Company of Nigeria was Oworo’s primary employer, while Shell Nigeria Exploration and Production Company was the secondary employer, describing the arrangement as a triangular employment relationship.
Oworo had challenged the termination, arguing that it was unlawful and that Shell Petroleum Development Company of Nigeria had no contractual authority to determine the employment.
The Shell companies, however, maintained that Shell Petroleum Development Company remained Oworo’s employer and had the contractual right to terminate the employment. They also argued that Oworo was paid three months’ salary in lieu of notice and other terminal benefits.
Counsel to Oworo, George Ogara, argued that the termination was wrongful because it was carried out without a valid reason relating to Oworo’s work capability or competence.
Delivering judgment, Justice Kola-Olalere said the court considered the pleadings, evidence, documents and submissions of counsel before reaching its decision.
The judge held that the reason for the termination ought to have been stated in Oworo’s letter of release.
The court further held that, given the National Industrial Court’s constitutional mandate to apply international best practices and international labour standards, ILO Convention No. 158 on Termination of Employment was relevant to the dispute.
Justice Kola-Olalere noted that termination should be based on a valid reason connected with an employee’s capacity or conduct, or the operational requirements of the employer.
The court, however, rejected Oworo’s claims for ₦273.8 million in gratuity and ₦2.1 billion in pension, holding that the claims required strict proof and that Oworo failed to establish entitlement to the amounts.
The court consequently held that the employment was wrongfully determined and ordered the defendants to jointly pay ₦14.9 million as compensation, representing two years’ salary, plus ₦500,000 in costs.
