The Presiding Judge, Benin Judicial Division of the National Industrial Court, Hon. Justice Adunola Adewemimo has ordered Mudiame University to pay its former Vice-Chancellor, Prof. Ernest the sum of N5.4m outstanding salaries, N2.4m personal income tax for October 2021 to February 2023 to the Edo State Tax Authority, and remit N2m pension contributions to a Pension Fund Administrator.
The Court held that the failure of Mudiame University to pay Prof. Ernest’s emoluments as and when due, leading to his resignation, was in breach of his terms of employment, and awarded the sum of N7.5 million as general damages in favour of Prof. Ernest and ordered that the monetary awards be paid within 60 days.
From facts, the Claimant, Prof. Ernest, had submitted that he was appointed Vice-Chancellor of Mudiame University in September 2021 for a tenure of five years. He had spent about 18 months in the employment before resigning from his position, and that the University had stopped paying his salaries and bonuses sometimes in 2022 and that the failure to pay his emoluments, among other matters, led to his resignation.
Prof. Ernest averred that, among other reliefs, outstanding salaries, personal income tax, pension contributions, and reimbursable expenses, he also sought the sum of N67.7m representing the unexpired three years of his tenure, the use of a Toyota Highlander or its N15m open-market value, and N10 million as general damages.
In defence, Mudiame University contended that Prof. Ernest did not give the requisite three months’ notice before resigning and was therefore liable to pay three months’ salary in lieu of notice.
Counsel to the University submitted that where two parties have made a contract which one of them has broken, the damages which the other party ought to receive should be such as may have been fairly and reasonably considered.
Counsel also contended that the claim for reimbursable expenses was unsupported by the necessary approval and documentary evidence and urged the Court to dismiss Prof. Ernest’s case and uphold the counter-claim.
In opposition, Counsel to Prof. Ernest relied on the resignation letter and the University’s subsequent acceptance of the resignation, and maintained that Prof. Izevbigie’s remuneration was payable monthly, and urged the court to grant the reliefs sought.
In a well-considered judgment, Justice Abiola Adewemimo held that Mudiame University reneged on its legal responsibility under the employment contract by failing to pay Prof. Ernest’s salaries as and when due.
Justice Adewemimo held that the Mudiame University, having accepted Prof. Ernest’s resignation, could not subsequently contest the effective date of the resignation, and consequently rejected the University’s contention that Prof. Ernest was liable to pay three months’ salary in lieu of notice and held that the resignation was done in accordance with the employment contract.
Justice Adewemimo held that the Letter of Appointment merely indicated Prof. Ernest’s total annual remuneration and did not provide that his salary was payable annually.
Justice Adewemimo held that the employment relationship had ended and therefore, Prof. Ernest could not continue to earn salary for the unexpired portion of his tenure.
The Court also refused Prof. Ernest’s claim relating to the Toyota Highlander or its N15 million open market value; therefore, Prof. Ernest had not completed the five-year tenure, and the claim was not supported by the terms of his employment contract.