COURT ORDERS ECOBANK TO PAY EX-WORKER 16 MONTHS SALARY

March 3, 2016 – The National Industrial Court of Nigeria (NICN) has ordered Ecobank Nigeria Plc to pay her former worker 16 months salary arrears.

The bank is to pay the money within 30 days. Her lordship, Justice O.O. Oyewumi gave the order in her judgment on suit number NICN/134/2011 filed by one Temitope Olowu, a former branch manager of Oceanic Bank Plc, now Ecobank Plc, who was dismissed by the bank in connection with allegations of fraudulently procurement and diversion of 10,000 metric tons of AGO, otherwise called diesel from an oil company, valued about N700 million.

The plaintiff had sought an order to secure his 16 months unpaid salary and the sum of N63.5 million as damages for what he termed ‘wrongful termination of appointment’ even when officials of the Nigerian Police Force (NPF) were yet to conclude investigation on the matter and pre-judgment interest.

In the judgment, Oyewumi ruled that the complainant succeeded partially to the extent of his salary arrears since he was suspended without pay until his appointment was terminated 16 months later.

Relying on the employee handbook of the bank, Evidence Act of 2011 and Master Servant Law, her lordship ruled that it is within the power of employee, the defendant in this case to suspend and terminate the employment of an employee but that the handbook, one of the evidence the court relied on did not provide for suspension without pay and that defense failed to show proof of payment during the period and consequently ordered that the claimant’s 16 month salary covering the period of his suspension be paid within 30 days and that the plea for wrongful termination of employment failed.

According to her, the bank did set up a committee to look into the matter with the claimant in attendance. Quoting several cases, her Lordship noted that there was therefore a case of fair hearing and that the defendant does not need to wait for the NPF to conclude investigation before arriving at a decision.

The claimant, in the words of Justice Oyewumi also failed in his plea for damages and pre-judgment interest up to the tune of N63.5 million, noting that the court only grants interest after judgment and not before judgment.

Her lordship ruled that the defendant however succeeded in his case of fraudulent sales and diversion of 10,000 metric tons of AGO against the claimant, adding that the claimant was negligence since he has a duty to perform due diligence and that failure to do so caused the defendant to suffer losses and that there was evidence of collusion between the claimant and one Charles Iheanacho who was sacked along with him.

Her lordship also ruled that the claimant has outstanding mortgage of N42, 465 to Eko Bank to be calculated at 5 percent interest and that both parties to bear cost of litigation.