The National Industrial Court in Lagos has ordered Bayer Nigeria Limited to pay a former employee ₦3.3 million for wrongfully terminating her employment without giving her the required one month’s notice or paying her salary in lieu of notice.
Justice Elizabeth Oji awarded the former employee ₦798,261 as salary in lieu of notice, ₦2 million as compensation for wrongful termination under the Industrial Court Act, and ₦500,000 as costs of the action. However, the court upheld Bayer Nigeria’s reorganisation, ruling that it was genuine and verifiable.
According to the facts presented before the court, the claimant, Mrs Olushola Oduse, said she underwent surgery and was granted leave to recover. Upon resuming work, she was informed four days later that her role was no longer required. Shortly afterwards, the company advertised the position.
Oduse said she applied for the advertised position and was interviewed but was informed that she lacked the required skills and experience for the role. The position was subsequently filled by another staff member.
Oduse challenged the termination, arguing that the reorganisation was an attempt to remove her from the company and that the duties of the new position were substantially similar to those she had performed.
In its defence, Bayer Nigeria maintained that the restructuring had made Oduse’s position redundant and denied that the termination was connected to her surgery.
The company argued that the reorganisation was justified and verifiable, citing its organisational report, internal advertisement of the vacancy, external recruitment process and interviews conducted with eight candidates.
Bayer Nigeria also maintained that it had complied with the contractual requirement for notice by providing for payment in lieu of notice in Oduse’s final settlement. The company stated that she had acknowledged receiving ₦3.8 million after deductions.
However, Oduse’s counsel, Chief Paul Omoijiade, argued that the reorganisation was a cover for removing his client, who he said had considerable experience and had performed responsibilities associated with the Head of Sales position alongside her existing duties.
Omoijiade questioned the interview process, arguing that Bayer Nigeria had failed to establish a credible basis for finding his client unsuitable for the new position.
He submitted that the termination breached Clause 14 of the employment contract, which required either party to give one month’s written notice or pay one month’s salary in lieu of notice. He urged the court to grant the reliefs sought by his client.
In her judgment, Justice Oji held that Oduse had proved that Bayer Nigeria wrongfully terminated her employment by failing to comply with the contractual requirement for one month’s notice or payment in lieu of notice.
The judge, however, found that the company’s reorganisation was genuine and verifiable. She also held that a comparison of the job descriptions did not support the allegation that the two positions were identical.
Justice Oji further ruled that the evidence did not establish that Oduse’s termination was connected to her surgery. The judge noted that correspondence before the court showed that Bayer Nigeria had approved her request for financial assistance for the surgery.
The court also found that Oduse was entitled to the net salary of ₦675,078.97 paid on 31 May 2021 for work already done, as she received the termination letter on 25 May 2021. Justice Oji held that the payment did not replace the required salary in lieu of notice and that the company’s failure to make the payment breached the employment contract.
The court declined to award additional compensation for alleged unfair labour practices and damage to Oduse’s brand, reputation and goodwill because those claims were not established by evidence.
For HR professionals, the ruling highlights the importance of following employment contract terms when terminating an employee’s appointment. Even where a company carries out a genuine reorganisation, HR teams must ensure that contractual notice periods are respected or the required salary in lieu of notice is paid. Clear documentation of restructuring decisions and compliance with employment terms can help organisations reduce the risk of costly employment disputes.
