Industrial Court Criticizes Olawale’s Resignation and Awards Damages Against Firm

The Presiding Judge, Lagos Judicial Division of the National Industrial Court has declared the resignation of Mr Olawale from the service of Atlas Copco Limited as involuntary.

The Court held that Mr Olawale’s resignation was done as a result of pressure from Atlas’s managers and supervisors amounting to a case of constructive discharge, and awarded the sum of One Million Naira (N1,000,000.00) as exemplary damages, and the sum of Three Hundred Thousand Naira (N300,000.00) in favour of Mr. Olawale.

However, on Mr Olawale’s damages claim for the sum of N102m equivalent to his salary for 22 years he would have spent with the firm, the Court dismissed the claim and held that there is no guarantee that Mr Olawale might live for 22 years in his post or that the business of the Defendant would continue successfully in 22 years time.

From facts, the Claimant- Mr Olawale had submitted that his contract of employment was wrongfully terminated as he was coerced to write his resignation letter that the defendant’s Country Manager in the presence of some other officials of the company coerced him to resign his appointment or risk outright termination of his employment.

In defence, the defendant- Atlas Copco Limited averred that Mr Olawale did not adduce evidence to support his allegation of resignation under duress, or workplace discrimination and harassment, and further that Mr Olawale has not led any evidence of his entitlement to variable compensation and the variable compensation applies only to the management staff of the company, urged the Court to dismiss the case in its entirety.

In reply, the claimant’s counsel contended that the calculation of 22 years envisages the years Mr Olawale was willing to stay in the Defendant’s service, and urged the Court to grant the reliefs sought.

Delivering judgment, the presiding Judge, Justice Maureen Esowe held that the presentation of the options to resign or face termination issued to Mr Olawale is not necessarily proof of the absence of coercion to exercise one’s free will to produce a particular result.

The Court reasoned that ordinarily, Mr Olawale might not have resigned from his appointment without the communication he had with members of the management of the company, conversely, the company could have exercised its right to terminate Mr Olawale’s appointment on 6 February 2019 when he was sent on compulsory leave without giving him prior knowledge of such intention.

Justice Esowe stated that the conduct of Atlas Copco Limited, insisting on getting a decision on the options placed before Mr Olawale on the modality of terminating his employment, clearly indicates a situation of constructive discharge and declared it as wrongful.