Hon. Justice Faustina Kola-Olalere of the Port Harcourt Judicial Division of the National Industrial Court has held that the employment of one Oworo by the Shell Nigeria Exploration and Production Company and Shell Petroleum Development Company of Nigeria was wrongly terminated.
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The Court ordered the Shell Nigeria Exploration and Production Company and others to jointly pay Oworo two years’ salary as compensation at the rate of N7.4m (Seven Million, Four Hundred and Twenty-Three Thousand and Two Naira) per annum, amounting to N14.9m, together with N500k as costs within thirty days for wrongful employment termination.
Justice Kola-Olalere further held that Shell Petroleum Development Company of Nigeria was Oworo’s primary employer, while Shell Nigeria Exploration and Production Company was his secondary employer, as Oworo was employed by Shell Petroleum Development Company of Nigeria to work for Shell Nigeria Exploration and Production Company.
From facts, the Claimant, Oworo, had submitted that he was employed by Shell Nigeria Exploration and Production Company and that Shell Petroleum Development Company of Nigeria had no contractual authority to determine his employment.
Oworo further contended that the termination of his employment was unlawful and sought, among other reliefs, orders setting aside the termination and warning letters, N2m as his expected salary and emoluments up to July 2037, N273.8m as gratuity and N2.1m as pension upon retirement.
In defence, Shell Companies maintained that Shell Petroleum Development Company of Nigeria remained his employer and had the contractual right to determine his employment, and that Oworo was paid three months’ salary instead of notice together with his other terminal benefits.
Shell Petroleum Development Company of Nigeria and others further argued that the employment was a private employment governed by the terms and conditions of service and that Oworo had no contractual right to remain in employment until 2037.
They maintained that the termination was an exercise of the contractual right to terminate the employment and that the motive for termination was irrelevant once the contractual provisions had been complied with.
In opposition, learned Counsel to Oworo, George Ogara Esq argued that his client’s employment termination was wrongful because it was carried out without a valid reason relating to his client’s work capability or competence, and urged the Court to grant the reliefs sought.
Delivering judgment after carefully evaluating the pleadings, evidence, documents and submissions of counsel, Hon. Justice Kola-Olalere affirmed a triangular employment relationship and held that the employment of Oworo was wrongly determined because the Shell Companies failed to state the reasons for the determination in Oworo’s letter of release.
The Court further held that, having regard to the development of labour jurisprudence in Nigeria and the constitutional mandate of the National Industrial Court to apply international best practices and international labour standards, ILO Convention No. 158 on Termination of Employment was relevant to the determination of the dispute.
Justice Kola-Olalere noted that termination should be based on a valid reason connected with the employee’s capacity or conduct or the operational requirements of the employer and held, in the circumstances of the case, that the reasons for the determination ought to have been stated in his letter of release.
The Court held that the gratuity claim was a special claim which required strict proof and that Oworo failed to prove his entitlement to N273.8m as gratuity and N2.1m as pension.
“Consequently, I hold that the employment of the Claimant in this instance, was wrongfully determined by the Defendants. For this wrongful determination of the Claimant’s employment, the Defendants are to jointly pay him his two years’ salary as a model compensation at the rate of N7,423,002.00 (Seven Million, Four Hundred and Twenty-Three Thousand and Two Naira) per annum.” The Court ruled.
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