Court Dismisses Entitlement Claim Against Letshego Microfinance Bank, Awards Cost

Hon. Justice Ikechi Nweneka of the Lagos Judicial Division of the National Industrial Court has dismissed Aniekan Monde-Umo’s entitlement claim against Letshego Microfinance Bank for lacking merit, awarded the sum of N50, 000 in favour of the firm as cost of action payable within 7 days.

Justice Nweneka held that Aniekan has not established his entitlement to the reliefs sought that his contract with the Letshego Microfinance Bank from August 2016 was not a continuation of his employment with FBN Microfinance Bank Ltd.

The Court held that there is no provision in Aniekan’s contract of employment with Letshego Microfinance Bank for cash payment for unutilized leave days which accrued under his previous contract, and the allegation of discrimination, oppression, and victimization by the firm was not proved.

From facts, the claimant- Aniekan Monde-Umo had submitted that in the six years he served with the firm, he did not fully utilize his leave days due to exigencies of work on the understanding that he would be compensated with cash equivalent of outstanding leave days, which was the regular practice of the firm and consistent with his contract of employment, and all efforts at amicable resolution were to no avail.

Aniekan argued that the refusal to pay his accrued entitlement for over four years simply because he voluntarily resigned, while his colleagues were paid smacks of malice and flagrant disregard of the law, urged the court to grant the reliefs sought.

In defense, the defendant- Letshego Microfinance Bank stated that FBN Microfinance Bank Ltd paid Aniekan’s terminal entitlements upon termination of his employment on 26th January 2016, and by the terms of the new contract of employment dated 30th August 2016, Aniekan was only entitled, on disengagement, to one month’s salary and cash equivalent of “any remaining accrued leave for the relevant year”, which was duly paid to him.

Letshego Microfinance Bank further contended that Aniekan’s claim for unutilized leave days was based on FBN Microfinance Bank Ltd standard, which does not apply to it, urged the court to resolve the issues in her favour.

After careful evaluation of the submission of both parties, the presiding judge, Justice Ikechi Nweneka held that the provision of Aniekan’s contract of employment entitling him to the claim was not stated, nor pleaded, that such claim should be pleaded with particulars and strictly proved.

Justice Nweneka held that Aniekan’s contract of employment with FBN Microfinance Bank Ltd was effectively terminated on 25th February 2016 and a fresh contract of employment was entered into between the two parties effective 25th February 2016.

The court continued that Aniekan’s computation of the amount payable to him for unutilized leave days at a per diem rate of N7, 973.44 from 2010 to 2015 was untenable having regard to differences in his salary and basic salary for that period.