A Lagos division of the National Industrial Court of Nigeria (NICN) has declared the termination of appointment of one Mr. Aruna Collins Ekpen by Lapo Microfinance Bank Limited as illegal, unconstitutional, wrongful, null and void
The presiding judge, Justice Mauren Nkechinyereugo Esowesays that the action of Lapo amounts to breach of international best practices on labour law.
She said, “It is hereby declared that the restriction placed on the claimant’s salaries for three consecutive months by the defendant is unlawful, unjustified and done with utmost bad faith.
“The defendant is ordered to pay the claimant the sum of N139, 163. 88, as damages representing what the claimant is entitled to as payment in lieu of notice. The defendant is ordered to pay the Claimant the sum of N250, 000. 00, as cost of action as assessed by the Court. Judgment is accordingly entered.”
The claimant, Aruna Collins Ekpen, had approached the court in a suit marked NICN/LA/145/2021, after he accused LapoMicrofinance Bank Limited of sacking unjustly and unconstitutional. The action he claimed was in breach of international best practices on labour law.
The claimant, through his lawyer, Sylvester Ijie, had asked the court for the following: “a declaration that the purported dismissal of the employment of the Claimant is unfair, unlawful and in breach of the principles of fair hearing and international best practices on labour law.
“A declaration that the withholding of his salaries for three consecutive months is unlawful, unjustified and done with utmost bad faith.
“An order of the Court directing the Lapo Microfinance Bank to pay him the total sum of N278,327.73, being the unpaid salaries for three months at N92,775.90 per month owed him.
“Interest on the sum of N278, 327. 73, at the rate of 21 percent on the principal sum till judgment is delivered and interest at the rate of 10 percent, on the judgment sum from the day of judgment of this Honourable Court till the judgment sum is fully liquidated.
“General damages in the sum of N1 million, for unfair dismissal, unlawful and unjustified termination of contract, financial hardship and socio-economic discomfort suffered by him because of the Lapo Microfinance Bank Limited’s refusal to release his arrears of salary for 3months despite repeated demands. And the Cost of this action as assessed by the Court.”
During the trial, the claimant told the court that he was employed by the defendant on December 2, 2013, while his employment was confirmed on October 21, 2015 vide a letter of confirmation dated the same day.
He told the court that In the course of his employment with the defendant, he worked in various capacity, and was placed on a monthly salary of N92, 775. 90. And that when he was transferred to one of the defendant’s branch office at ObalendeNigeria from its Opebi branch.
He told the court that he was not paid relocation allowance, due to the distance from his place of residence to the Defendant’s Forsyth branch, and that he had challenges with keeping up with his daily resumption time. The situation which made the defendant placed restrictions on his salary account while he was disengaged on December 09, 2020.
However, Lapo Microfinance Bank Limited in its defence to the suit filed by its lawyer, Teena Wills-Obong, urged the court to dismiss the claimant’s suit with substantial cost.
Upon deciding the issues raised by parties in favour of the claimant, Justice Esowe ordered the defendant to pay the Claimant the sum of N250, 000. 00, as cost of action as assessed by the Court.
