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Industrial Court declares Dismissal, Suspension of Ogechukwu without pay as unlawful, awards N5m damages against Bank

The Presiding Judge, Enugu Judicial Division of the National Industrial Court, Hon. Justice Oluwakayode Arowosegbe has declared the purported dismissal of Mrs. Ogechukwu Ogbaka dated 16th January 2020 as unlawful, directed the OHHA Microfinance Bank to pay her salary arrears with effect from April 18, 2018, until the date the bank determines her appointment following due process with her annual leave grants for 2018, 2019 and 2020, and awarded the sum of N5m as general damages.

Justice Arowosegbe ruled that any suspension without pay that spans more than a month, even if the contract provides for it, cannot be reasonable and valid and, would be declared unlawful and the employer held liable for payment of the arrears because, it is totally unreasonable and inhuman to expect that, an employee would be deprived of his job seemingly temporarily, and his salaries stopped and yet, be prevented from securing another job.

The Court ordered the OHHA Microfinance Bank to issue Mrs. Ogechukwu Ogbaka letter of termination for services no longer required, and payment of N531,069 [Five Hundred and Thirty-One Thousand, Sixty-Nine Naira] as three-month salaries in lieu of notice within 14 days.

From facts, the claimant- Mrs. Ogechukwu Ogbaka had pleaded that she was placed on indefinite suspension without pay for alleged misconduct pending the conclusion of the investigation with a clause that, she could not resign and she must visit the office twice weekly on Mondays and Wednesdays to sign the Attendance Register [AR], which she had complied with.

She pleaded that the EFCC investigated the alleged misconduct and despite not being linked with the crime in anyway, the bank had refused to lift her indefinite suspension and to pay her arrears of emoluments, and all efforts to get succour proved abortive.

In defense, the defendant- OHHA Microfinance Bank counterpleaded that, the actions of Mrs. Ogbaka and others were contrary to banking rules and they were placed on indefinite suspension without pay with management staff but the claimant, who was supposed to be reporting and signing the attendance register refused to do so since July 2019.

The Bank counterpleaded that, the Board dismissed Mrs. Ogbaka after considering its internal investigation in its meeting on December 30, 2019 but could not give her dismissal letter because, she had stopped coming to the office and it could not also locate her residence, urged the court to dismiss the case for lacking merit.

In opposition, Mrs. Ogbaka’s counsel, Anene Ojinta Esq argued that the EFCC, having concluded its investigation, the bank could not concoct another investigation to justify the suspension, and the bank had taken an action that conflicted with his client’s right in the contract, urged the court to grant the reliefs sought.

The erudite counsel also submitted that the bank didn’t hold a board meeting where the decision to dismiss her was taken,  that it was after the receipt of the process in January 2020 that the defendant made the dismissal letter and argued that the allegation was a tissue of lies.

Delivering the judgement after careful evaluation of the submission of both parties, the presiding Judge, Justice Olukayode Arowosegbe held that OHHA Microfinance Bank failed woefully to justify the reasons given for Mrs. Ogbaka’s dismissal and ruled that the bank cannot depart from the outcome of the investigations of the law enforcement agencies and just leap to any other panel, if they exist, without any explanation, and there is no iota of evidence before the Court that Mrs. Ogbaka was invited to any internal investigating panel.

Justice Arowosegbe held that the dismissal of Mrs. Ogbaka, based on spurious allegations, lacked all semblances of natural justice, fair hearing and fair labour practice.

Justice Arowosegbe further held that OHHA Microfinance Bank’s assertion that Mrs Ogbaka breached banking rules, did not tender any and did not make reference to the specific provisions of any banking rules in its pleadings.

“An employee could not reasonably be expected to have savings of more than a month to cushion suspension without pay. So, suspension without pay for more than a month is inhuman and punishment without proof, and cannot be valid for any reasonable reason. I so find and hold.

“It follows naturally and logically that, whenever suspension forbids an employee from resigning and is coupled with condition that the employee continues to report in office, which means, apart from being unable to secure another job, he is prevented from being useful to himself by being self-employed, if feasible, that, it must automatically be with pay to compensate for the severe deprivations otherwise, it would mean that, the employee was being punished and starved to death for an offence that has not been established against him! Suspension is not punishment or diminution of employment rights.” Justice Arowosegbe ruled

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