Industrial Court Orders Firm To Pay Ex-Staff N630,025 Pocket Expenditure Within 30 Days

The Presiding Judge, Asaba Judicial division of the National Industrial Court of Nigeria, His Lordship, Hon. Justice John Targema has ordered IHS Towers Nigeria Ltd to pay Mr. Francis Ukwunna the sum of N630,025 unpaid out of pocket expenditures within 30 days, and failure upon which shall attract interest at the rate of 10% per annum.

The court held that Mr. Francis submission that the computation of his severance entitlements in the termination letter is at variance with his contract of employment are not sufficient to meet the requirements of particulars for a claim of special damages.

To the claimant, he had a contract of employment with his former firm before being acquired by the defendant-IHS Nigeria Ltd in 2016 and was given another contract of employment, that during the acquisition negotiation process there was an oral agreement between the former company employees and IHS Nigeria Ltd that upon termination, the firm would pay the employee his annual salary multiplied by his number of service year as due severance entitlement/benefit.

The claimant continued that on the 30th day of November 2017 the contract of employment of the claimant was terminated and was paid only one month salary in lieu of notice as full severance benefits over which he immediately protested; demanding for the balance of severance benefits in line with the oral agreement subsequently reduced into writing via the addendum to the contract of employment.

That before the termination of the claimant’s employment contract, his former firm was also indebted to the claimant for approved out of pocket expenses made in the course of his employment which the defendant also refused to pay.

In opposition, the firm submitted that the termination letter complied with the terms of service between them and the steps taken are in line with the law requires of them.

Continuing, the defendant submitted that nothing in the addendum and Employee manual suggest in any way that the claimant will be paid his annual salary multiplied by the number of years spent at the company as his severance package denied making oral or written commitment in the Addendum that claimant is not entitled to the reliefs sought urged the court to dismiss the suit with a heavy cost.

Also, on the claim for the sum of N630,025 unpaid out of pocket expenses alleged to have incurred by the claimant, the defendant submitted that the claimant will only be entitled to the out of pocket expenditure (if any) expended by him in the cause of his employment with the defendant which was duly approved.

Delivering Judgment, the presiding Judge, Hon. Justice Targema held that going by section 10.4 of Employee Manual, it is staff who retire normally at 60 or on medical grounds that are entitled to severance benefits including full salary up to the date of retirement; not staff who are disengaged by sanctions under section 9.1.4 of Employee Manual as is the case with the claimant.

“The much-heralded Addendum, I dare say, is without specifics and in itself without more in terms of figures or what tantamount to employee benefits. While the letter of Addendum talks of employee benefits, the claimant’s claim is for severance benefits.

“There is no indication on the pleadings that base salary equates to employee’s benefits in the letter of Addendum and that take retrospective effect.”

On the claim for out of pocket expenses, the court expressed thus; “The defendant’s argument that it may well be that those out of pocket expenditures have been paid off by the former employer dubiously conjures up criminality on the part of the claimant, requiring proof beyond reasonable doubt. This, the defendant did not do even when it had, and still has all the records at his disposal, appealing instead to base sentiments. As it is, therefore, the veracity of out of pocket expenses, in my view, stands preferred. I so find and hold.”