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  >  Civil Litigation   >  Limits To The Powers Of The National Industrial Court Of Nigeria To Award Damages To An Employee Whose Employment Was Wrongfully Terminated

Limits To The Powers Of The National Industrial Court Of Nigeria To Award Damages To An Employee Whose Employment Was Wrongfully Terminated

Notwithstanding the Supreme Court’s position on the quantum of damages which an employee whose employment has been wrongfully terminated will be entitled to, the NICN has, in certain cases, applied its discretion in awarding damages to employees whose employment were wrongfully terminated by their employers. Two of such cases would be considered in this paper.

In the case of Mrs. Titilayo Akisanya v. Coca-Cola Nigeria Limited & 2 Ors (Unreported) Suit No. NICN/LA/40/2012, the NICN in its judgment delivered on 7 th April 2016 awarded the sum of N17,368,468.00 representing the Claimant’s annual salary as damages for the wrongful termination of her employment notwithstanding that her contract of employment provided for one-month notice in the event of the termination of the contract.

Also, in the case of Mr. John Muir v. Batelitwin Global Services Limited (Unreported) Suit No. NIC/LA/151/2011, the NICN in its judgment delivered on 13th May 2013, awarded the sum of US$193,050.00 representing the unpaid salary for the unexpired period of the Claimant’s contract of employment as damages for the wrongful termination of his employment notwithstanding that his contract of employment provided for one-month notice in the event of the termination of the contract. The pertinent facts of Mr. John Muir v. Batelitwin Global Services Limited are as follows: the Claimant was employed on a fixed contract for a period of one year as a Senior Piping Designer. About 4 months after the commencement of his contract, his employer terminated his employment without notice on the ground of incompetence and the Claimant challenged the termination of his employment at the NICN for being null and void. He also claimed the sum of US $ 208,800.00 being the total sum of his salaries from December 2009 to August 2010, amongst other reliefs, but the NICN only awarded him the sum of US$193,050.00 as damages for the wrongful termination of his employment.

Interestingly, the Court of Appeal has set aside the decisions of the NICN in Mrs. Titilayo Akisanya v. Coca-Cola Nigeria Limited & 2 Ors and Mr. John Muir v. Batelitwin Global Services Limited on the ground that the damages which were awarded to the Claimants in the two cases have no basis in law since they were based on the exercise of the discretionary powers of the NICN and not on the settled position of the law regarding the award of damages to an employee whose employment was wrongfully terminated.

In Coca-Cola Nigeria Limited & 2 Ors v. Mrs. Titilayo Akisanya (Unreported) Appeal No. CA/L/661/2016 the Lagos Division of the Court of Appeal in its judgment which was delivered on 17th November 2017 reduced the damages which was awarded to the Respondent by the NICN from N17,368,468.00 to the sum of N1,447,373.33 representing the Respondent’s one month emoluments in lieu of notice.

Also, in Batelitwin Global Services Limited v. Mr. John Muir (Unreported) CA/L/566/2013 the Lagos Division of the Court of Appeal in its judgment which was delivered on 3 rd November 2016 reduced the damages which was awarded to the Respondent by the NICN from $193,050.00 to the sum of $24,750.00 being the sum commensurate to the Respondent’s one month salary in lieu of notice of termination of his employment.

 

Conclusion

The implication of the Court of Appeal’s recent decisions in Coca-Cola Nigeria Limited’s case and Batelitwin Global Services Limited’s case is that the NICN would now be expected to ensure that damages awarded in cases of wrongful termination of employment are commensurate with the notice period contained in an employee’s contract of employment, as against using its discretionary powers to award damages at large. In addition, Counsels also have a duty to ensure that they do not file claims for exaggerated reliefs in respect of lawsuits pertaining to wrongful termination of employment since the Court of Appeal, which is the final Court on employment related matters, has settled the issue of the quantum of damages, which an employee would be entitled to, if his/her employment has been wrongfully terminated.

…the NICN would now be expected to ensure that damages awarded in cases of wrongful termination of employment are commensurate with the notice period contained in an employee’s contract of employment, as against using its discretionary powers to award damages at large.