The National Industrial Court, Lagos Judicial Division, has declared the indefinite suspension without pay and subsequent dismissal of accountant Benedict Ifanyichukwu Eze by R.A. Trading & Investment unlawful and wrongful, ordering the company to pay more than ₦4.7 million in terminal benefits, unpaid salaries, and salary in lieu of notice.
Delivering judgment, Hon. Justice Joyce Damachi ordered R.A. Trading & Investment to pay Eze a total of ₦4.725 million within 30 days.
Justice Damachi held that, although an employer has the right to terminate an employee’s appointment, such action must be carried out strictly in accordance with the terms of the employment contract.
The court awarded Eze ₦1.6 million as terminal benefits, ₦2.9 million representing 13 months’ salaries withheld during his unlawful suspension without pay, and ₦225,000 as one month’s salary in lieu of notice.
According to the claimant, Eze was employed by R.A. Trading & Investment as an accountant and performed his duties diligently until he was issued with a query. He told the court that he responded to the query but was subsequently placed on indefinite suspension without pay. He further stated that, while the matter was still before the court, the company terminated his employment without paying his accrued entitlements.
Eze also told the court that, despite repeatedly seeking clarification on the outcome of the investigation and his employment status, R.A. Trading & Investment neither recalled him from suspension nor paid his outstanding salaries and benefits. Instead, he said, the company proceeded to terminate his employment while the suit remained pending.
In its defence, R.A. Trading & Investment argued that Eze had been negligent in handling company transactions and that his actions resulted in substantial financial losses. The company maintained that the indefinite suspension was necessary to enable it to investigate the allegations against him.
The company also disputed the amount claimed as Eze’s entitlement and filed a counterclaim. However, the court observed that it failed to present evidence in support of the counterclaim.
Counsel for the claimant, Chukwuma Cosmos Esq., argued that R.A. Trading & Investment had acknowledged Eze’s entitlement to terminal benefits in the letter terminating his employment. He submitted that the employment contract governed the rights and obligations of both parties and urged the court to grant the reliefs sought.
In her judgment, Justice Damachi held that Clause 7 of the employment contract permitted suspension without pay for a maximum period of two weeks. She found that R.A. Trading & Investment had kept Eze on indefinite suspension without pay for more than one year, in clear breach of the contract.
The court ruled that the prolonged suspension was unlawful and wrongful. Justice Damachi further held that there was no evidence that the company had paid Eze his accrued entitlements or one month’s salary in lieu of notice, as required under the employment contract. Consequently, she declared the termination of his employment unlawful.
Justice Damachi ordered R.A. Trading & Investment to pay all the sums awarded within 30 days. She further ruled that, should the company fail to comply within the stipulated period, the judgment sum would attract interest at the rate of 10 per cent per annum until fully paid.
