The National Industrial Court, sitting in Calabar, has ordered Japaul Gold Ventures and Japaul Mines Ltd to pay a former employee, Okon Asuquo Sylvester, a total of ₦1.41 million in salary arrears, terminal benefits, and costs.
Delivering judgment, the Presiding Judge of the Calabar Judicial Division, Hon. Justice Sanusi Kado, directed the companies to pay ₦761,400 in salary arrears covering the period from September 2015 to 27 August 2016, ₦350,000 as terminal benefits, and ₦300,000 as the cost of the action within 30 days.
Justice Kado held that although Asuquo’s employment was never formally terminated, the evidence before the court established that the employment relationship effectively came to an end in August 2016. Consequently, the court ruled that he was entitled only to salaries and benefits accrued up to that period and could not claim wages beyond the date his employment had effectively ceased.
According to the court proceedings, Asuquo testified that he was employed by Japaul Gold Ventures before being deployed to Japaul Mines Ltd as a Community Liaison Officer at the company’s quarry site. He told the court that he worked continuously for more than 11 years but stopped receiving his salary from September 2015 despite never being issued a formal letter terminating his appointment.
The claimant relied on the company’s Conditions of Service, arguing that because his appointment had not been officially terminated, he remained entitled to salary arrears, terminal benefits, and other employment-related benefits.
However, Japaul Gold Ventures and Japaul Mines Ltd contended that Asuquo’s employment had been converted into a renewable fixed-term contract in 2015 and was subsequently terminated in 2016. The companies also argued that they were separate legal entities and maintained that Japaul Gold Ventures should not be held liable for obligations arising from the employment relationship between Asuquo and Japaul Mines Ltd.
The defendants further informed the court that all benefits due to Asuquo had already been paid and urged the court to dismiss the suit.
Responding on behalf of the claimant, Victor Okon, Esq., argued that his client had been employed by Japaul Gold Ventures before being assigned to Japaul Mines Ltd, which he described as a subsidiary of Japaul Gold Ventures. He submitted that there was no valid evidence demonstrating that Asuquo’s employment had been terminated and maintained that both companies remained liable for the outstanding salaries and benefits. He urged the court to grant all the reliefs sought.
In its judgment, Justice Kado rejected the defendants’ contention that Japaul Gold Ventures had been improperly joined in the suit. The court held that Asuquo was employed by Japaul Gold Ventures and rendered services to Japaul Mines Ltd, making both companies proper parties to the proceedings.
The court further held that the companies’ Conditions of Service applied to employees of both Japaul Gold Ventures and Japaul Mines Ltd and could therefore be relied upon in determining Asuquo’s entitlement to terminal benefits.
Justice Kado reaffirmed that, although there had been no formal termination of the claimant’s employment, the evidence clearly established that the employment relationship had effectively ended in August 2016. Accordingly, the court awarded salary arrears covering the period from September 2015 to 27 August 2016 but declined to award salaries beyond that date.
The court also found that the proven period of Asuquo’s employment was from May 2011 to August 2016, amounting to five years and four months, rather than the more than 11 years claimed.
Justice Kado held that, under the applicable Conditions of Service, an employee who had completed five years of service was entitled to terminal benefits equivalent to five months’ gross salary. The court therefore awarded Asuquo ₦350,000 as terminal benefits, in addition to ₦761,400 in salary arrears and ₦300,000 as the cost of the suit.
