The Lagos Division of the National Industrial Court of Nigeria has ordered Sterling Bank to pay ₦10.45 million in outstanding gratuity to a former employee, Mrs. Nkechi Stella Ogbonnaya, after ruling that the bank failed to prove she was properly informed of a policy abolishing gratuity benefits.
Delivering judgment, Justice Anthony Ubaka held that the bank’s failure to clearly communicate the revised 2015 Staff Handbook invalidated its defence. He ruled that the non-payment of gratuity was wrongful and affirmed that the claimant’s entitlement under the earlier policy remained valid. The court also awarded ₦300,000 as cost of action, payable within 30 days, failing which the sum will attract 10 per cent annual interest.
Mrs. Ogbonnaya told the court that she began her banking career with Magnum Trust Bank in 2000 and was transferred to Sterling Bank in 2006 following a merger. She stated that she served for over 20 years, rose to the position of Assistant Manager, and resigned in December 2020.
She added that although she received part of her terminal benefits, her gratuity was excluded, prompting her to seek legal redress.
Sterling Bank denied liability, arguing that gratuity had been abolished under a revised Staff Handbook issued in 2015. The bank maintained that the policy was communicated to employees via email and replaced earlier conditions of service.
Its counsel further argued that the claimant had received all due entitlements and had no legal basis for additional claims.
However, Mrs. Ogbonnaya’s counsel, Mr. U.C. Ikegbule, contended that the bank failed to demonstrate that the claimant received or was aware of the revised handbook. He argued that accrued employment rights cannot be withdrawn without proper notification.
In his ruling, Justice Ubaka affirmed that while employers are entitled to review workplace policies, such changes are only enforceable when properly communicated to employees.
“The burden of proving that the claimant was aware of the new employee handbook lies on the defendant, and failure to discharge the same is fatal to its case,” he held.
The court concluded that Mrs. Ogbonnaya remains entitled to her gratuity under the previous policy and ordered Sterling Bank to pay the outstanding amount accordingly.
