The Abuja Division of the National Industrial Court of Nigeria has ordered General Flavours Food and Compact Manifold Food to jointly and severally pay ₦4.09 million to a former employee, Mrs. Jessica N. Okeredinma, over unpaid salaries and aggravated damages.
Delivering judgment in Abuja, Hon. Justice Rakiya Haastrup directed the companies to settle the sum within 30 days, failing which the amount would attract 10 per cent annual post-judgment interest. The court held that the decision was intended to ensure that workers are not deprived of their lawful earnings.
In her ruling, Justice Haastrup faulted the companies for failing to honour their obligations following Okeredinma’s resignation in December 2017. She described as “reprehensible” their subsequent claim that she had not been their employee, holding that such conduct warranted an award of damages.
The court ordered the defendants to pay ₦1,806,041.65 as outstanding salaries for April, August, October, November, and December 2015. It also awarded ₦290,000 as unpaid salaries for part of August 2017, as well as October, November, and December 2017.
In addition, the court awarded ₦2 million as aggravated damages for the hardship suffered by the claimant. The total judgment sum stands at ₦4,096,041.65, representing unpaid wages and damages.
Justice Haastrup further ruled that the 10 per cent annual interest would apply if the defendants failed to liquidate the judgment debt within 30 days of its delivery.
Okeredinma told the court that, during her employment with the firms, her salaries were withheld for several months. She stated that her pay was later reduced without her consent and that, despite repeated demands, her entitlements were not settled, compelling her to resign.
In their defence, General Flavours Food and Compact Manifold Food denied owing her any money. They contended that she abandoned her position at Compact Manifold and was subsequently engaged by General Flavours Food only as a casual worker without a fixed salary.
Counsel to the defendants argued that the two companies were distinct legal entities and that no written contract existed to establish an employment relationship between Okeredinma and General Flavours Food.
However, counsel to the claimant, C. U. Onyeukwe, Esq., countered that the two firms shared management and operational control. He submitted that Okeredinma received regular monthly salaries and that the companies’ conduct clearly established an employer–employee relationship under the Labour Act.
In resolving the dispute, Justice Haastrup held that a contract of employment may be oral and need not always be reduced to writing. She found that the evidence demonstrated that Okeredinma had been absorbed by General Flavours Food and paid fixed monthly salaries, rather than casual stipends.
The judge further held that the defendants failed to disprove the claim of unpaid wages and had unjustly refused to settle the claimant’s entitlements following her resignation.
However, the court declined Okeredinma’s claim for annual leave bonuses covering 2013 to 2016. Justice Haastrup ruled that she failed to provide evidence showing that she had obtained approval to proceed on leave during those years.
