The Port Harcourt, Rivers State division of the National Industrial Court, has ordered both Shell Petroleum Development Company of Nigeria Limited and Shell Nigeria Exploration and Production Company to jointly pay the sum of N15.4 million to an employee, Uzodinma Aju Oworo, over the wrongful termination of his employment.
Justice Faustina Kola-Olalere who presided over the court ordered the judgment sum must be paid paid within 30 days starting from the day of the judgment.
The award comprises 2 years’ salary calculated at N7,423,002 per annum, amounting to about N14.9 million, as compensation for the wrongful determination of Oworo’s employment, and N500,000 awarded as costs.
Justice Kola-Olalere, in her judgment, held that Shell Petroleum Development Company of Nigeria was Oworo’s primary employer, while Shell Nigeria Exploration and Production Company was his secondary employer under a triangular employment arrangement.
Oworo through his counsel, George Ogara, argued that the termination was wrongful because the company failed to provide a valid reason connected to his capacity, conduct or competence.
Oworo had argued that his employment was wrongfully terminated because Shell Petroleum Development Company of Nigeria lacked the contractual authority to determine his employment.
He had asked the court to set aside the termination and warning letters, alongside several financial claims, including N2 million for expected salary and emoluments up to July 2037, N273.8 million in gratuity and N2.1 million in pension upon retirement.
But the Shell companies disputed the claims, maintaining that Shell Petroleum Development Company of Nigeria was Oworo’s employer and had the contractual right to terminate his employment.
The companies also argued that Oworo was paid 3 months’ salary in lieu of notice, alongside his other terminal benefits, and that his employment was governed by the applicable terms and conditions of service.
They further maintained that Oworo had no contractual right to remain employed until 2037, arguing that the motive for the termination was irrelevant once the contractual provisions governing termination had been complied with.
Delivering judgment, Justice Kola Olalere held that the defendants wrongly determined Oworo’s employment because they failed to state the reasons for the termination in his letter of release.
The judge also held that developments in Nigerian labour jurisprudence and the constitutional mandate of the National Industrial Court to apply international best practices and International Labour Standards made ILO Convention No. 158 relevant to the dispute.
According to the court, termination of employment should be based on a valid reason connected with an employee’s capacity or conduct, or the operational requirements of the employer.
Justice Kola Olalere consequently held that the circumstances of Oworo’s case required the reason for the termination to have been stated in his letter of release.
However, the court rejected Oworo’s claims for N273.8 million gratuity and N2.1 million pension, holding that the claims required strict proof which he failed to provide.
“Consequently, I hold that the employment of the claimant, in this instance, was wrongfully determined by the defendants,” the judge ruled.
In the final analysis, Justice Kila-Olalere ordered the two defendants to jointly pay Oworo 2 years’ salary as compensation at the rate of N7,423,002 per annum, in addition to N500,000 awarded as costs.