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JUDGMENT: Industrial Court Orders Firm to Pay Ex-staff Gratuity, Pension Within 30 days

The National Industrial court of Nigeria sitting in Abuja has ordered Reiz Continental Hotel to pay its former staff, Sally Charles the sum of N124,308 balance of gratuity for nine years meritorious service, N18.308 unremitted pension deducted from January to June 2015 and N300,000.00 cost of action within 30 days.

Delivering the judgment, Hon. Justice Sanusi Kado of the National Industrial Court, Abuja held that entitlement of an employee is provided in the letter of employment and the conditions of service, which form the bedrock of the relationship between employer and employee.

A summary of the judgment released by the court’s media unit on Saturday stated that the verdict “held the Claimant’s entitlement must be paid in line with exhibit E of the staff handbook in operation”

“It is my view that exhibit DWB, being an internal memo issued by the 1st Defendant to its members of staff is not applicable to the Claimant in this case for the simple reason that the exhibit was issued on 11/9/20015 after the Claimant had resigned her appointment with effect from 8/7/2015.

“This means that the Claimant’s entitlement or terminal benefit must be paid in line with exhibit E, which was the staff handbook in operation as at the time the Claimant resigned her employment.

“The condition of service clearly stated that an employee that served the 1st Defendant will be entitled to payment of 6 weeks’ salary for every completed year of service. This means the Claimant will be paid six weeks basic salary for nine years as gratuity and nothing will be paid for the five months eight days service since is not completed year.

On the claimant claim for the ten years service award, Justice Kado expressed thus;

“Furthermore, the case of the Claimant would have been established by the doctrine of arithmetical approximation if the Claimant has served for more than nine and a half years as at the time of resignation, alas! That was not the case here. In the circumstances, the Claimant has not proved entitlement to this relief as she had not served for ten years which would have made her entitled and eligible for the award.”

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