The National Industrial Court has ordered Presal Nigeria . Ltd to pay the sum of N8.5 million within 30 days to four of its former employees.
Justice Zaynab Bashir on Wednesday gave the order following a suit by the claimants, Mr Abdulahi Ibrahim, Ayebaiduate Omubo, Innocent Tommy and Friday Barikpe.
The court held that the termination of their employment without notice nor payment of salary in lieu of notice was wrongful and unlawful.
N4 million of the N8 million is for the claimants outstanding salaries, allowances and other benefits from Dec. 2015 to Sept. 2016, contributory pension from Aug. 2013 to Sept. 2016 and gratuity payment.
She then ordered an additional sum of N4 million as general damages and N500,000 as cost of action.
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Accounting to the court, the claimants said the firm had terminated their employment without complying with the conditions of service.
They told the court that while their salaries were delayed and some remained unpaid, their pension contributions were also not remitted.
In its defence, the firm agreed it was owing the claimants salaries in the sum of N3.6 million, but denied all other reliefs sought.
It claimed that its failure to pay was due to economic hardship that had led to the closure of the company and the disengagement of the claimants.
The firm told the court that the claimants were paid salaries in lieu of termination which was accepted by them.
While ruling on the case, Justice Zaynab the court declared that “The modalities employed by the defendant in paying the claimants their outstanding salaries, allowances and other benefits in piecemeal as harsh, wrongful, illegal, and unacceptable.
The court also declared that “The defendant’s refusal to pay the claimants outstanding salaries, allowances and other benefits from Dec. 2015 to Sept. 2016, gratuity payment of 50% of their terminal monthly salary for each completed year of service, and withdrawal of the claimants’ money in the name of contributory pension scheme without remitting same was harsh, wrongful, illegal, unacceptable and breach of the claimants’ rights.”
The judge threatened that the failure of the firm to comply with the judgement directives within 30 days, the said sum shall attract interest at the rate of 10% per annum
The court declined to grant the claimants relief that sought for reinstatement.
