Justice I. J. Essien of the Lagos division of the National Industrial Court (NICN) has declared the termination of the employment of a former District Manager of Neimeth International Pharmaceuticals Plc, Mr. Lawrence Onwuegbuchi, by the company was unlawful, null and void
To compensate Onwuegbuchi of the unjust sack, the judge has awarded over N7.5 million in damages, entitlements and costs against Neimeth International Pharmaceuticals Plc.
Justice Essien made above orders while delivering judgment in a suit numbered NICN/LA/222/2022, filed against the pharmaceutical firm by its former manager.
In the judgment, the judge held that although the claimant was not entitled to reinstatement because the employment was one governed by a master-servant relationship, but the company breached the terms of his employment by failing to properly terminate his appointment and denying him his lawful entitlements.
Onwuegbuchi had approached the court in 2022, claiming that after serving the pharmaceutical company for several years and rising to the position of District Manager (West), he was orally directed in December 2014 to stop work by the company’s Sales Director.
He alleged that he was subsequently denied access to the workplace, while his salaries, allowances, approved expenses and other employment benefits remained unpaid.
He had sought numerous reliefs, including declarations that his employment subsisted, reinstatement, payment of outstanding salaries and allowances running into millions of naira, special and general damages, and interest.
Neimeth, however, argued that the suit was statute-barred because it was filed about eight years after the claimant’s appointment was terminated on December 9, 2014.
The company also maintained that his employment had been validly terminated and denied owing him the sums claimed.
In deciding the suit, Justice Essien dismissed the preliminary objection, holding that the case fell within the recognised exception of continuing injury, as the employer failed to provide the claimant with details of his terminal benefits and allegedly continued withholding his lawful entitlements.
The judge further held that Neimeth failed to prove that the termination letter was ever served on the claimant or that the termination complied with the company’s employee handbook, which required approval by the Chief Executive Officer for terminating a senior management employee.
Relying on evolving labour standards, including the ILO Termination of Employment Convention, 1982 (Convention No. 158), the judge stated that employers can no longer terminate employment without a valid reason connected to an employee’s conduct, capacity or operational requirements.
The court awarded the claimant N1,952,007 as unpaid monetary entitlements, N5 million as general damages for unlawful termination, N549,000 as reimbursement for official vehicle repair expenses, and N1 million as the cost of the suit.
The judgment sums are to be paid within 15 days, failing which they will attract interest at the rate of 10 per cent per annum until fully liquidated.