The National Industrial Court, sitting in Port Harcourt, has declared the termination of Joseph Simon Akor, a former Deputy Manager at First Bank of Nigeria, wrongful and ordered the bank to pay him ₦3.2 million as the outstanding balance of his withheld salaries and allowances during suspension, alongside ₦2 million in general damages for breaching the terms of his employment.
Delivering judgment, Hon. Justice Zaynab Mohammed Bashir of the Port Harcourt Judicial Division held that First Bank failed to comply with the disciplinary procedure set out in its Staff Employee Handbook before terminating Akor’s employment. Although the court acknowledged the bank’s contractual right to terminate his appointment, it ruled that its failure to follow its own disciplinary framework rendered the termination wrongful.
The court heard that Akor joined First Bank in May 2005 and rose to the position of Deputy Manager before his employment was terminated in December 2018 over allegations of misconduct.
Akor told the court that the allegations were never substantiated. He stated that while under suspension he received only about ₦31,000 per month, instead of half of his basic salary as stipulated in the bank’s Staff Employee Handbook. He further argued that his employment was terminated while investigations into the allegations were still ongoing.
He also contended that the bank breached its Staff Employee Handbook by terminating his employment before concluding its investigation and unlawfully withholding part of his salaries, allowances, and other benefits despite the allegations remaining unproven.
In its defence, First Bank argued that Akor was afforded a fair hearing through its disciplinary process. The bank maintained that his employment was lawfully terminated because his services were no longer required and contended that he was not entitled to the outstanding balance of his suspended salary after his employment had ended.
The bank further submitted that the reason stated in the termination letter—that his services were no longer required—was legally sufficient and should not be interpreted as implying any additional grounds.
Counsel to Akor, O. G. Tony Ogidi, Esq., argued that First Bank failed to comply with the disciplinary procedure prescribed in its Staff Employee Handbook. He maintained that the bank terminated his client’s employment before completing its investigation and failed to justify the action in accordance with its own rules.
Ogidi also argued that the termination letter offered no reason beyond stating that Akor’s services were no longer required. He further submitted that the bank breached its Staff Employee Handbook by paying his client substantially less than the prescribed half of his basic salary throughout his suspension.
In her judgment, Justice Bashir held that the evidence established that First Bank breached the terms of Akor’s employment by failing to comply with its disciplinary procedure after commencing investigations into the misconduct allegations. She also found that the bank failed to pay him the prescribed half of his basic salary during his suspension.
The judge ruled that although First Bank possessed the contractual right to terminate Akor’s employment, it failed to comply with its own contractual obligations and disciplinary procedures, rendering the termination wrongful.
Justice Bashir further held that, having terminated Akor’s employment on the basis that his services were no longer required rather than dismissing him for misconduct, the bank could not subsequently rely on the misconduct allegations to deny him the salaries and financial benefits due to him during his suspension.
