“Wrongful Termination, Unfair Labour Practices” — Court Orders Shoprite To Pay Employee N10.69m Damages

The Presiding Judge, Ibadan Judicial Division of the National Industrial Court, Hon. Justice Dele Peters faulted the Retail Supermarkets Nigeria Limited “Shoprite” on wrongful employment termination of one Atinuke from office.

The Court declared the termination of Atinuke’s employment by Shoprite constitutes an act of unfair labour practices for non-compliance with its Company policy and Employment Contract, and international best practices on labour.

Justice Dele Peters ordered “Shoprite” to pay Atinuke the sum of =N=190,000.00 (One Hundred and Ninety Thousand Naira) being salary in lieu of termination notice, and the sum of Ten Million Naira (=N=10,000.000.00) as damages for the wrongful termination of her employment, and the sum of Five Hundred Thousand Naira (=N=500,000.00) as cost of action within 30 days.

The Court held that Atinuke was denied the right to a fair hearing in the events culminating in her disengagement by the Retail Supermarkets Nigeria Limited “Shoprite”, and the conduct of the company in the eventful termination of Atinuke’s employment is against international best practice in labour and employment matters.

From facts, the claimant- Atinuke had submitted that her employment was maliciously and unjustly terminated in bad faith and that the way and manner of termination of her employment with Shoprite has affected her marketability and future career progression in the labour market.

Atinuke argued that Shoprite did not comply with its Company policy and Employment Contract, and urged the Court to grant the relief sought.

In defence, the Defendant- Retail Supermarkets Nigeria Limited “Shoprite” averred that Atinuke is not entitled to any salary beyond what she was paid upon the termination of her employment not having worked for subsequent months; and that Atinuke failed to prove that her employment was wrongfully terminated; and urged the Court to dismiss the case in its entirety.

In opposition, Atinuke testified that she was not afforded the opportunity to defend herself because of the timeline of the events as everything happened on the same day and she was not allowed into the office the following day, and urged the Court to grant the reliefs sought in the interest of Justice.

In a well-considered Judgment, the Presiding Judge, Justice Dele Peters reiterated that when an employee alleges wrongful termination of an existing employment the burden is on him to adduce cogent, credible and admissible evidence in support of the assertion.

The Court identified that Atinuke’s employment was terminated effective the same day, and there is no evidence of any payment in lieu of notice of termination to Atinuke, and that Atinuke was not afforded the one-month notice in line with the contract of employment.

Justice Dele Peters maintained that there ought reasonably to be some time lag between the issuance of query to an employee and the initiation of disciplinary proceedings that the allegations contained in each of these exhibits are not reconcilable, and the reasons for the suspension differ in all material respects from allegations to which answer was sought in the query.

The Court ruled that the reasons given for the termination of Atinuke’s employment carry with them some stigma which entitles the Claimant to substantial damages far beyond the payment of salary in lieu of notice.

“The Defendant did not comply with its own laid down rules and policy in terminating the employment of the Claimant. The termination is not in tandem with international best practices in labour and employment matters. It is also in contravention of ILO Convention 158 as well as judicial authorities from the appellate Courts. The termination is therefore wrongful and I so hold.” The Court ruled.