The National Industrial Court of Nigeria, Lagos Judicial Division, has ordered British American Tobacco Marketing Limited to pay ₦10 million in damages to Mr Eithel Effiang Chu Yeh Mbunkur over the revocation of his employment offer after he had resigned from his former employment, relying on the company’s representation that he would be engaged.
In a judgment delivered by Hon. Justice Anthonia Ubaka, the court held that the employment letter issued to Mr Eithel constituted a valid offer which became a binding contract after he accepted it. The court also awarded him ₦500,000 in costs and held that the termination of his employment on the basis of an alleged negative background check was wrongful.
Justice Ubaka held that while an employer was entitled to conduct background checks on a prospective employee, such checks must be carried out in line with the stipulated process and any adverse finding relied upon must be properly established.
According to the facts before the court, Mr Eithel said he completed the recruitment process and supplied the information requested by British American Tobacco Marketing before he was informed by telephone that he would be engaged.
He said he relied on the representation and resigned from his former employment in preparation for taking up the new position.
Mr Eithel further claimed that the alleged negative outcome of the background check was never disclosed to him or his representatives despite several requests. He also said he was not given an opportunity to verify, explain or challenge the outcome of the check.
The claimant maintained that he relied on the company’s representations by disengaging from his former employment, incurring expenses in preparation for his relocation to Nigeria and making other arrangements to assume his new position.
In its defence, British American Tobacco Marketing argued that Mr Eithel’s resignation preceded its conditional offer of employment and was made voluntarily.
The company maintained that its employment process was formal and subject to the satisfactory completion of pre-employment medical and background checks.
British American Tobacco Marketing further stated that the background check conducted on Mr Eithel returned negative and unsatisfactory results, which it said gave the company reasonable cause for concern.
The company said it notified him of the unsatisfactory outcome and its decision not to proceed with the employment. It also maintained that the conditional offer expressly reserved its right to revoke the offer without notice where the background check produced a negative outcome.
However, Justice Ubaka held that British American Tobacco Marketing could not rely on a technicality after issuing Mr Eithel two letters of employment and taking steps towards his engagement.
The court noted that the company had continued with the process, including applying for Mr Eithel’s STR visa and approving the purchase of his ticket.
The court therefore held that Mr Eithel accepted the offer and that a valid contract existed between the parties.
Justice Ubaka further held that the evidence before the court showed that the parties had agreed on Mr Eithel’s salary, other benefits and relocation benefits, which supported the existence of a valid employment arrangement.
The court also relied on British American Tobacco Marketing’s conduct in commencing the STR visa process as evidence supporting the employment arrangement between the parties.
On Mr Eithel’s resignation from his former employment, Justice Ubaka held that the resignation became effective upon receipt of his resignation letter, stating that no person was entitled to keep two jobs at the same time.
The court consequently held that Mr Eithel was entitled to damages for the loss he suffered as a result of relying on the company’s employment offer.
Justice Ubaka ordered British American Tobacco Marketing to pay ₦10 million in damages and ₦500,000 as costs to Mr Eithel, with the sums to be paid within 30 days.
