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Court awards N27m to sacked bank employee

The National Industrial Court of Nigeria, Asaba Division, Delta State, has ordered United Bank for Africa Plc (UBA) to pay […]

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The National Industrial Court of Nigeria, Asaba Division, Delta State, has ordered United Bank for Africa Plc (UBA) to pay its former employee, Richard Okagbare, N27,011,356.56 in general damages for unlawful termination. Justice Dr. J. I. Targema described the dismissal as unconstitutional and malicious and directed the bank to make payment within 30 days of the judgment, which was delivered on 18 January 2023.

Okagbare, represented by lawyer N. W. Ogbogu, sued the bank in case NICN/ASB/47/2020, seeking a declaration that his termination by a letter dated 20 April 2016 breached the bank’s Group Staff Handbook and Compensation Policy. He argued that the dismissal violated international standards, specifically the International Labour Organisation’s Termination of Employment Convention (No 158) and Recommendation 166, including Articles 4‑7, and was therefore unlawful. His reliefs included: (1) a declaration of the breach; (2) payment of N133,006,862.64 for unpaid salary (April 2016), loss of earnings (May 2016 – March 2025, the projected retirement age), nine years of leave encashment and leave allowance; alternatively, a payment of N92,104,447.27 for the April 2016 salary under the bank’s Compensation Policy, plus costs and 10 % interest on the judgment sum.

During the trial, Okagbare testified that he was employed by the bank in 2016 and terminated under questionable circumstances. He received only N441,107.66, with no notice pay or terminal benefits, contrary to the bank’s policies. He requested that the termination letter be withdrawn and that he be allowed to resign, but the bank refused, citing industry customs that make re‑employment difficult after dismissal.

UBA’s witness, Mr. James Ebako, testified on behalf of the bank, led by counsel Mr. G. C. Igbokwe (SAN). He confirmed that Okagbare’s employment ended in 2014/2016 after a series of disciplinary actions. According to Ebako, the employee held various positions with specific tasks, and his performance was monitored through a holistic appraisal system. The bank reported that Okagbare performed poorly for five consecutive appraisal cycles, was advised to resign in April 2016, and, after refusing to do so, was issued a termination letter in accordance with the bank’s Human Resource Disciplinary Process and Sanction Policy.

After considering the arguments, evidence, and relevant authorities, Justice Targema ruled in favor of the claimant. He declared that the termination dated 20 April 2016 breached the bank’s Group Staff Handbook and terms of employment, deeming it unconstitutional, malicious, and unlawful. The court ordered UBA to pay Okagbare N27,011,356.56 within 30 days as general damages for unlawful dismissal and for the bank’s refusal to provide a work reference. No costs were awarded.

Ifunanya

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