Justice Osatohanmwen Ayodele Obaseki-Osaghae of an Abuja division of the National Industrial Court of Nigeria (NICN) has ordered Industrial and General Insurance Company (IGI) Plc, to pay a total sum of N14, 869,474.41 million, Mr. Christopher Emenike Orji, who was unlawfully sacked by the company.
Justice Obaseki-Osaghae also ordered the insurance company to 10 percent of the judgment sum, if it failed to pay the judgment sum after 30 days of the order.
The judge made the above orders while delivering judgment in the suit marked NICN/ABJ/259/2023, filed by the Mr. Christopher Emenike Orji against the insurance company, IGI Plc.
Orji through his lawyers, Nanpon Wuyep and T.V. Gujor Por, had dragged the insurance company before the court over his purported sack.
Orji’s reliefs before the court were as follows: “an order for the defendant to pay him the sum of N12,934, 759.63 million, being the outstanding balance of Claimant entitlements from the Defendant upon termination of his employment by the Defendant.
“An order for the defendant to pay him the sum of N3,770,145 million, being the gratuity/special redundancy payment due to the Claimant upon termination of his employment by the Defendant.
“An order for the defendant to remit, up to the date of termination of the employment of the Claimant, the pension deductions and contributions of the Claimant, in the prescribed statutory percentage to his Pension Fund Administrator and deliver proof of same to the Claimant within 60 days from the day judgment is delivered in this case.
“An order for the defendant to remit, up to date of termination of the employment of the Claimant, the National Housing Fund contribution deductions from the Claimant’s salaries, and deliver proof of same to the Claimant, within 60 days from the day judgment is delivered in this case.
“An order for the defendant to pay, up to the date of termination his employment, the PAYE taxes deducted from his salary, and to obtain and deliver his Tax Clearance Certificate within 90 days from day judgment is delivered.
“An order for the defendant to pay the Claimant the sum of N130, 000. 00, being the refund of the payments made by him in settlement of Abia State Infrastructural levies for year 2015, 2016 and 2017 on behalf of the Defendant.
“An order for the defendant to pay to him the sum of N6 million as damages and cost of instituting the suit.
“An Order for the Defendant to pay 10% interest per annum on the judgment sum from the day judgment is delivered till the judgment sum is fully liquidated.”
IGI Plc did not enter appearance or file a defence in spite of being served the originating processes and hearing notices.
Delivering judgment in the suit, Justice Obaseki-Osaghae held that: “I have carefully considered the originating processes, the evidence, the submissions of counsel and authorities relied on in the final address. The Defendant did not file any defence. This therefore is a matter that is undefended. The effect of a party’s failure to defend a claim against him/her is that he/her is presumed to have admitted the case made against him/her by the other party; and a trial court has little or no choice than to accept the unchallenged and un-controverted case placed before it by the Claimant.
“This however does not mean automatic victory for the Claimant because he must succeed on the strength of his case and not rely on the fact that there is no defence before the Court. The absence of a defence does not exonerate the Claimant of the evidential burden of proof placed on him in Section 131 (1) & (2) Evidence Act 2011,
“The law is settled that in the determination of employment rights, it is the employee who complains that his employment contract has been breached that has the burden to place before the court the terms and conditions of his employment that provides for his rights and obligations.
“It is also the law that whoever desires the court to give judgment as to any legal right or liability dependent on the existence of facts which he asserts must prove those facts exist, section 131 (1) & (2) of the Evidence Act 2011,
“The Claimant has established by that the Defendant employed him on November 2007 (exhibits C1, C2, and C3) ; and that his employment was terminated with effect from 31st December 2019. In evidence is the Defendant’s computation of the Claimant’s final entitlements, which it put as N10,185,446.56 million. This figure was communicated to the Claimant and he disputed it by his letter to the Defendant, wherein he gave his own computation and stated that the amount outstanding was N13,941,817.35 million. The Defendant did not reply him.
“It is the unchallenged evidence of the Claimant that the only sum paid the Defendant paid to him is N1, 007, 057. 72 million, leaving a balance of N12, 934, 759. 63 million, outstanding in respect of his terminal benefits. I am satisfied that the Claimant is entitled to be paid this sum as his outstanding terminal benefits…..
“The Claimant has made a claim for gratuity/special redundancy payment upon the termination of his employment. He has not placed before the Court the handbook or document that entitles him to this benefit. What is placed before the Court is an extract (photocopies), and it is unknown where it came from. There is no evidence that the extract (exhibit C10) is from the Defendant’s handbook. There is also no proof that the sum of N130, 000.00 the Claimant states he paid in settlement of infrastructural levies for the years 2015, 2016, and 2017 has not been refunded by the Defendant. These two claims have not been proved, and they are refused. There are no particulars in the pleadings in respect of pension deductions, PAYE tax, and National Housing fund. These are in the realm of special damages that must be particularized and strictly proved.
“The Claimant has made a claim for damages. On the issue of notice in respect of termination, I find that the Claimant was given a month’s notice of termination of his appointment and is not entitled to damages for wrongful termination of employment. However, the failure of the Defendant to pay the Claimant’s final benefits for over a period of four years has no doubt caused him hardship. The value of the Naira in December 2019/2020 when the Defendant ought to have paid the Claimant was much higher than it is today. This is occasioned by the gradual devaluation of the Naira over the period. The essence and purpose of general damages in this instance is to compensate the Claimant for the pecuniary loss arising naturally from the failure and/or refusal of the Defendant to pay his terminal benefits as at when due in till date.
“The Claimant is entitled to an award of damages pursuant to the provisions of section 19 (d) of the National Industrial Court Act 2006. I award the Claimant the sum of N1, 434, 714. 78 million, being the equivalent of three months salary as general damages.
“For the reasons given above, I hereby make the following orders, the Defendant is to pay the Claimant the sum of N12, 934, 759. 63 (Twelve Million Nine Hundred and Thirty- Four Thousand Seven Hundred and Fifty- Nine Naira Sixty-Three Kobo only) being the outstanding terminal entitlements due to the Claimant.
“The Defendant is to pay the Claimant the sum of N1,434,714.78 (One Million, Four Hundred and Thirty Four Thousand, Seven Hundred and Fourteen Naira, Seventy Eight Kobo) as general damages.
“Costs in the sum of N500,000.00 awarded the Claimant.
“All sums are to be paid within 30 days. Thereafter, any sum outstanding will attract simple interest calculated at the rate of 10% per annum.”
Parts of the claimant’s case against IGI Plc, read: “that the defendant employed him by letter dated November 1, 2007. The Claimant averred that he was promoted to the rank of Manager by a letter dated November 12, 2014 and with effect from 30th November, 2014 with a revised salary and breakdown of its components. He stated that from November 2014 his monthly salary was set at N478, 238. 26 monthly after all deductions and this is evidenced in his pay slips.
“The Claimant averred that the Defendant by a letter dated 9th December, 2019, terminated his employment with effect from 31st December, 2019. He stated that in the letter of termination he was asked to hand over all Company properties in his possession and also complete exit clearance forms, after which all his entitlements would be paid to him, and he complied with the directives, but after almost four years, the Defendant has failed to fully pay his entitlements as promised.
“The Claimant averred that before the termination of his appointment, he was owed several months arrears of salaries which remains unpaid till date and that sometime in 2015 the management of the Defendant notified staff including him that as a result of paucity of funds, it would adjust salaries of staff downwards temporarily in order to cushion the effect from September, 2015. That during this period, his salary was adjusted to N382, 590, 000, monthly, till it was stopped in March 2018 and the full salary of N478, 238.26 was restored.
“The Claimant averred that after the termination of his appointment and after several appeals to the Defendant, the Defendant by email sent on 29th July, 2021 wrote to him offering the sum of N10,185, 446.56 million, as his total entitlement, which is less than what his entitlement is. And that he responded in protest challenging the calculation done by the Defendant and offered what he believed was the correct figure breaking down the components. However till date the Defendant never responded to his email.
“The Claimant averred that till date, only the sum of N1, 007, 057. 72 million, has been paid to him by the defendant, leaving the balance of the sum of N12, 934, 759. 63 million. Adding that by his employment contract and the Defendant’s employee handbook (particularly paragraph 3.6.1 on page 24), he is entitled to 12 weeks basic salary for each completed year of service as gratuity.
“The Claimant averred that he had severally reached out personally, through phone calls and emails to the Defendant to demand for his entitlements, all to no avail. He stated that he wrote a letter through his lawyers Sterling Solicitors to demand his full entitlements to be paid to him as to avoid legal action to recover same; but that the Defendants have still not paid his entitlements almost 4 years after they terminated his appointment.
“The Claimant averred that the Defendant has consistently deducted employee pension contributions, national housing funds deductions and PAYEE taxes from his salaries. That from enquiries made with his Pension Fund Managers; Radix Pension Managers, Federal Mortgage Bank and the State Internal Revenue Service, there is an indication that these have either not been fully remitted or have only been partly remitted by the Defendant
“The Claimant averred that sometime in 2017, while still in the employment of the Defendant, as Manager of Aba Branch of the Defendant he had to source for the sum of N130,000 (One Hundred and Thirty Thousand Naira) from his personal funds to clear arrears of Abia State Infrastructural levies for the years 2015, 2016 and 2017 to prevent the harassment, arrest and possible prosecution of the staff of the Company as well as sealing of the business premises, having experienced a similar thing in November, 2015 for similar reasons. He stated that despite repeated demands for the refund of the sum of N130,000 paid by him, the Defendant has failed or refused to make the refund.
“The Claimant averred that he offered unblemished services to the Defendant for several years and has suffered untold hardship, including major health challenges as a result of the refusal by the Defendant to pay his entitlements having lost his job suddenly without notice and having no other source of income and has been unable to meet his obligations to himself and family as a result of the Defendant’s actions.”
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