Industrial Court Orders Firm to Negotiate Redundancy Payments For Sacked Staff

Hon. Justice Ikechi Nweneka of the National Industrial Court, Lagos Judicial division has declared the termination of Mr. Sopeyin Arif and 47 others’ employments with the Greenwich Registrars & Data Solutions as an act of redundancy.

The Court also declared the way and manner of termination of Mr. Sopeyin Arif and 47 others’ employments by the Greenwich Registrars & Data Solutions without negotiation as wrongful and amounts to an unfair labour practice; ordered that the firm negotiates appropriate redundancy payments to the Claimants with their representatives within 14 days from today and awarded the sum of N3,500,000 [Three Million Five Hundred Thousand Naira] as cost and Solicitors’ fees against the firm.

From facts, the claimants- Sopeyin Arif and 2 others had submitted that they brought the action in a representative capacity for themselves and on behalf of 45 other persons who served the firm and its predecessor in different capacities for a varying number of years ranging from five to nine years before their employments were terminated on 14th July 2014.

They contended that the manner of termination of their employment amounts to redundancy, and asserted that the firm failure to state a reason for termination of their employment is an unfair labour practice and contrary to international labour standards and international best practices.

In defense, the Defendant- Greenwich Registrars & Data Solutions denied liability to the Claimants and averred that there is nothing before the Court to suggest that the firm defaulted in fulfilling the conditions for termination of the Claimants’ employment.

In addition, the defendant’s counsel, Mr. Chukwudi Enebeli raised two preliminary points, on the grounds that the suit is bad for misjoinder of parties and causes of action, and the 4th Claimant- Association of Senior Staff of Banks, Insurance and Other Financial Institutions lacks the locus to bring the action against the firm, and urged the court to non-suit the Claimants.

The Learned counsel argued that the collective agreement having not been ratified by the firm is not binding on it and cannot vest the association with the requisite locus standi to sue the Defendant.

Responding, Mrs. Joy Braimoh, learned counsel for the Claimants, submitted that the basis of a representative action is to prevent multiplicity of actions, that the process adopted by the defendant to terminate their employment amounts to redundancy, urged the Court to discountenance Defendant’s submissions and grant the reliefs sought.

Delivering the judgment after careful evaluation of the submission of both parties, the presiding judge, Justice Ikechi Nweneka held that the action as presently constituted is competent and the Claimants have the capacity to bring the action in a representative capacity.

Justice Nweneka also struck out the name of the 4th Claimant- Association of Senior Staff of Banks, Insurance, and Other Financial Institutions from the proceeding being a meddlesome interloper, and evident in the fact that it did not file any witness deposition.

The Court also ruled that the Greenwich Registrars & Data Solutions is not a financial or allied institution and, therefore, outside the jurisdictional scope of NEABIAI, ASSBIFI and NUBIFIE and not bound by the collective agreement and the allegation that the Claimants were targeted for termination for their membership of the association or for union activities has not been established.

However, Justice Nweneka ruled that the manner the termination of Mr. Sopeyin Arif and 47 others’ employments was carried out by the Greenwich Registrars & Data Solutions constitutes an act of redundancy; and the firm was required to comply with Section 20 of the Labour Act.

“I hold that the sum of N120,928,893.62 claimed as redundancy benefits has not been proved. Nevertheless, having found that the termination of the Claimants’ employments amounts to redundancy, and Section 20[1][c] of the Labour Act, obligates the Defendant to use its best endeavours to negotiate redundancy payments with the Claimants, and having refused the claim for damages, this Court must provide a remedy, for where there is a wrong there must be a remedy.” Justice Nweneka ruled.