Hon Justice Rakiya Haastrup of the Abuja Judicial Division of the National Industrial Court has ordered General Flavours Food and Compact Manifold Food to jointly and severally pay the sum of N4.09m to one Jessica over outstanding salary arrears and aggravated damages within 30 days.
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Justice Haastrup faulted the action as reprehensible for failure to honour their commitment after Jessica’s resignation and subsequently claiming she was not their employee and not indebted to her.
From facts before the Court, the claimant, Jessica had submitted that while working with the firm, her salaries were unpaid for several months, her pay was later unilaterally reduced, and her outstanding entitlements were never settled despite repeated demands leading to her resignation in December 2017.
In defence, General Flavours Food and Compact Manifold denied transferring Jessica’s employment, insisting that Jessica abandoned her job with Compact Manifold and was engaged by General Flavours Food on a casual basis without any fixed salary.
Counsel to General Flavours Food and Compact Manifold argued that the two companies were separate legal entities and that there was no written contract establishing an employment relationship between Jessica and General Flavours Food.
In opposition, learned counsel to Jessica, C U Onyeukwe Esq, contended that the two companies shared management and operational control, that Mrs Jessica was paid regular monthly salaries and that their conduct clearly established an employment relationship within the meaning of the Labour Act.
In a well-considered judgment, Justice Haastrup held that a contract of employment can be oral and that the evidence before the Court showed that Mrs Jessica was absorbed by General Flavours Food and paid fixed monthly salaries rather than stipends.
The Court held that General Flavours Food and Compact Manifold failed to disprove the evidence of unpaid salaries and described their refusal to settle Jessica’s entitlements after her resignation as reprehensible conduct deserving of aggravated damages.
However, the Court refused Jessica N Okeredinma’s claim for leave allowances covering the years 2013 to 2016 for failure to show she had approval to go on leave.
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