Court Orders NNPC To Pay N629m For Wrongful Dismissal Of Staff

The National Industrial Court has ordered the payment of N629 million to an employee of the Nigerian National Petroleum Corporation (NNPC) over unjust termination of appointment by the management in 2018.

The Presiding Judge of the Port Harcourt Judicial Division, Justice Faustina Kola-Olalere, ruled that the dismissal of the complainant, Dr. Williams, from NNPC was wrongful as it did not follow relevant labour laws.

This was disclosed on the official website of the National Industrial Court on Monday.

Williams asserted that he worked as an Assistant Administrative Supervisor for NNPC until his abrupt and malicious dismissal, urging the court to grant N25,000,000,000.00 in damages for breach of contract and unlawful dismissal.

The claimant’s lawyer, F.K. Amachree Esq., argued that, after identifying the perpetrator of fraudulent activities within the company, NNPC “took additional steps against Dr. Williams, who had served for over 30 years without any queries or warnings and had never breached the Corporate Policy and Procedures Guidelines, ignoring the recommendation of the Ad Hoc Committee and dismissing him abruptly.”

The counsel contended that, according to employment law, NNPC failed to exhaust or explore all means of fair hearing as outlined in the Corporate Policy & Procedure Guide before dismissing his client.

In opposition, NNPC’s legal team argued that Williams’s dismissal was lawful due to his gross negligence and dereliction of duty, which caused significant loss to the company.

The counsel for NNPC added that Williams’s dismissal was in line with the NNPC Corporate Policy and Procedure Guide (CPPG), which grants NNPC the authority to dismiss or terminate his appointment for negligence, as indicated in a letter dated February 15, 2018.

Justice Kola-Olalere observed that NNPC failed to prove its case of criminal or gross negligence against the former staff member beyond a reasonable doubt.

The court held that the first suspension letter issued to the claimant by NNPC did not specify payment of salary, indicating that the suspension was without pay, contrary to relevant laws.

Additionally, the court noted that NNPC’s Corporate Policy and Procedure Guide (CPPG) provides for the termination of an employee’s appointment but does not include dismissal as a means of disengagement.

The court ruled that, based on these findings, that the claimant was entitled to his full salary for the duration of his first suspension from January 23, 2015, to May 9, 2016 (totaling one year, three months, and sixteen days) and half of his monthly salary for the period of his second suspension from May 10, 2016, to February 15, 2018, when he was wrongfully dismissed.

“The Claimant has rendered several years of meritorious service, with his employment effective from August 23, 1991 (see Exhibit C.1 on page 37 of the record) to February 15, 2018, when he was dismissed (see Exhibit C.35). The Claimant received several promotions and written commendations from the Defendant, as evident in Exhibit C.3. He was a top-ranking employee, and for him to be dismissed without justifiable cause is outrageous and reprehensible. The Defendant was reckless in dismissing the Claimant baselessly from its employment.

“Since the wrongful dismissal of the Claimant is now deemed ‘Wrongful Termination’ in this judgment, I hold that the Claimant is entitled to all his terminal benefits as agreed upon in his contract of employment, less whatever the Defendant has already paid him as terminal benefits, which the Claimant argues is incomplete,” the judge ruled.

The court subsequently ordered NNPC to pay N24.6 million in unpaid salaries for the suspension period, N600 million in exemplary damages for the wrongful termination of his employment, and N5 million in legal costs, totaling N629 million to Williams.

Justice Kola-Olalere declared that NNPC’s decision to dismiss Williams, rather than terminate his employment as recommended by the Ad-Hoc Committee, was wrongful as it contravened the terms and conditions of the claimant’s employment as stated in the NNPC Corporate Policy and Procedure Guide (CPPG).

The National Industrial Court of Nigeria is a judicial institution established in 1976 to adjudicate trade, labour, and employment disputes.