Daily Law Tips (Tip 565) by Onyekachi Umah, Esq., LLM. ACIArb(UK)

SACKING OF A PRIVATE SECTOR WORKER WITH OR WITHOUT REASON.

Private sector workers are employees that are not engaged by any government in Nigeria. They are persons that are not employed by local, state or federal government of Nigeria, rather they are employed by private persons, businesses, companies, organisations and institutions not owned by government. Private sector workers are not public servants “government pikin“. This publication focuses and applies to ONLY workers in private sector (workers not employed by local, state or federal governments of Nigeria). The words “fire” “sack”, “termination”, “dismissal” as well as their verbs in this publication mean and refer to the same thing.

Private sector workers are often employed with a simple employment contract (often written and sometimes, orally made). The relationship between a private sector worker and his private sector employer is a pure master-servant relationship. Workers and their tenure of employment are at all times at the mercy of their employers. The employers have ultimate powers to sack, terminate or dismiss their worker anytime, anywhere but not anyhow. Workers must be sacked in line with the procedure for termination of employment contained in their employment agreements. Such agreements contain proper notices of termination to be given as well as payments to be made in place of such notices and salaries to be paid, all inline with the provisions of the Labour Act (a federal law regulating employers and employees in Nigeria).

The Labour Act provides the minimum notice of termination that an employer can give his worker and vice versa. For example, a worker for not more than continuous period of 3 months needs only one day notice, worker for continuous period of 3 months but less than 2 years needs only one week notice, a worker for continuous period of more than 2 years but less than 5 years needs only two weeks notice and a worker for continuous period of 5 years or more needs one month notice. This is what the law says in Nigeria, so anything better than this that any worker in Nigeria enjoys an employer is bonus. However, if such higher period of notice is written in an employment agreement then, the employer is strictly bound by it. An employment agreement can only increase the minimum duration to notice of termination created by law but cannot decrease it.

A worker can be sacked by his/her employer at anytime with or without any reason, so far as the termination is done inline with their agreed procedure and all outstanding salaries and benefits are paid to the sacked worker. It is so simple and often expressed that an employer can sack a worker for not liking the worker’s nose or hat. However, if an employer ever states or gives a reason for dismissing any worker then the reason must be satisfactorily proven (it must be reason enough) by the employer, if not proven, the dismissal may be wrongful. Wrongful termination is when a worker is fired without observing his employment agreement, like failure to issue notice of termination, failure to pay salary in lieu (in place) of notice of termination or failure to pay for outstanding salaries and benefits without any justifiable reason like gross misconduct, cheating and fraud involving the concerned worker.

By the way, no court in Nigeria can do anything about termination that follows agreed employment terms, since a willing worker cannot be forced or dumped on an unwilling private sector employer. Hence, workers cannot be ordered to be reinstated in private sector. The courts will only intervene in private sector termination or dismissal where such termination was done wrongfully.

Below are the words of the Supreme Court on this issue;

“…an employer is not bound to state the reasons why an employee’s appointment is terminated. See Taiwo v. Kingsway Store Ltd 19 NLR 122, (ii) Obe v. Nigersol Construction Co. Ltd (1972) 2 University of Ife Law Report (pt. 2).”
Per MUHAMMAD SAIFULLAHI MUNTAKA-COOMASSIE ,J.S.C. ( Pp. 9-10, paras. G-A ). Quote from the case of INSTITUTE OF HEALTH ABU HOSPITAL MANAGEMENT BOARD v. ANYIP (2011) LPELR-1517(SC)

“Although it is trite that an employer is not obliged to give any reason for firing his servant all the same it is settled law that where he has proferred any reason at all it is obliged to satisfactorily prove the same as the onus is on him in that regard, otherwise the termination/dismissal may constitute a wrongful dismissal without more.”
Per CHUKWUMA-ENEH ,J.S.C ( P. 21, paras. A-B ). Quote from the case of INSTITUTE OF HEALTH ABU HOSPITAL MANAGEMENT BOARD v. ANYIP (2011) LPELR-1517(SC)

“The court has no jurisdiction to impose a servant on an unwilling master, unless the appointment has a statutory flavour. In the case the onus will be on the employee who alleged that he was wrongly removed from the appointment to so show. See College of Medicine v. Adegbite (1973) 5 SC. See also Nigeria Airways Ltd. v. Yahaya Ahmadu (1991) 6 NWLR (Pt. 198) at 493. Afri-Bank Nigeria Plc. v. Christopher Obi Nwuaeze (1988) 6 NWLR Pt. 553 at 286.”Â
Per MUHAMMAD SAIFULLAHI MUNTAKA-COOMASSIE ,J.S.C ( P. 10, paras. C-D). Quote from the case of INSTITUTE OF HEALTH ABU HOSPITAL MANAGEMENT BOARD v. ANYIP (2011) LPELR-1517(SC)

My authorities, are:

1. Sections 9 and 10 of the Labour Act, 1971.
2. The Supreme Court’s decision in the case of INSTITUTE OF HEALTH ABU HOSPITAL MANAGEMENT BOARD v. ANYIP (2011) LPELR-1517(SC)
3. The Supreme Court judgement (on the issue of compensation for wrongful termination or dismissal) in the case of OBANYE v. UNION BANK (2018) LPELR-44702(SC)
4. The Supreme Court’s judgement (on the issue of reliefs for wrongful termination of private sector worker) in the case of ATIVIE v. KABELMETAL (NIG) LTD (2008) LPELR-591(SC)
5. The Supreme Court’s judgement (on the issue that a worker can be dismissed for misconduct, fraud or indiscipline without notice or payment of wages and even without being charged to court or reported to law enforcement agency) in the case of EZE v. SPRING BANK PLC (2011) LPELR-2892(SC)
6. The Supreme Court’s judgment (on the issue that an employer in private sector must not give reason for sacking a worker) in the case of OLAREWAJU V. AFRIBANK PLC (2001) 13 NWLR (PT. 731) 691; OLANIYAN V. UNIVERSITY OF LAGOS (1985) 2 NWLR (PT. 9) 599; and GARBA V. UNIVERSITY OF MAIDUGURI (1986) 1 NWLR (PT. 18) 550.

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