Justice Salisu Danjidda, presiding in the Lagos Division of the National Industrial Court, has mandated the Lagos Building Investment Company Plc to disburse jointly and severally to Olatunbosun Owolabi and 7 others.
This sum represents their outstanding payment, as the court declared that the initial payments made upon the termination of their employment were under-calculated.
Additionally, Justice Danjidda ordered the Lagos Building Investment Company to fulfill an obligation to Folasade Taiwo by paying her the sum of N84,346.41 (Eighty-Four Thousand, Three Hundred and Forty-Six Naira, Forty-One Kobo) the aggregate of her outstanding entitlement payment.
The case unfolded as Olatunbosun Owolabi and 8 others asserted that the company failed to compute their redundancy benefit following the reorganization, contending that the payments were not aligned with the severance benefits outlined in the Company’s Staff Handbook.
In response, the Lagos Building Investment Company maintained it wasn’t obligated to honor the agreement brokered by the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) but did so on compassionate grounds.
The court rejected the company’s argument, emphasizing that the payments were not ex-gratia but owed based on the terms of their agreement and the Company Handbook.
In delivering the judgment, Justice Danjidda concluded that Owolabi and 8 others were entitled to redundancy benefits per the Company Handbook, dismissing the claim tied to the expired 2005 Collective Bargaining Agreement.
The court highlighted the company’s admission to paying the agreed-upon redundancy benefits, reinforcing the employees’ entitlement to the calculated sum.
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