Compulsory retirement: Man gets justice against Bank of Industry 7 years after

By Vivian Okejeme, Abuja

The National Industrial Court, has ruled in favor of one Mr. Sonny Ekedayen against the Bank of Industry over compulsory retirement from the bank in 2015.

Ruling in a suit marked NICN/LA/569/2015, the court ordered that all his unpaid arrears and salaries and other employment entitlements from December 2015 when the suit was filed until date, are to be paid by the 2nd Defendant within thirty (30) days of the date of this judgment.

Specifically, the court held that failure to do so will attract 10% interest on your arrears of salaries and entitlements.

In the suit, the father of four claimed that he was illegally asked to proceed on compulsory retirement at the age of only 50 years, having also served for only 12 years as at November 20, 2015 when the incident happened.

The presiding judge, Justice R.H. Gwandu declared that the 1st Defendant (Managing Director) has no right or power to compel or force Ekedayen’s resignation with the 2nd Defendant(Industrial Court).

Responding to the judgement, counsel to Ekedayen, Abimbola Akeredolu (SAN), said they got justice after years of waiting.

“Subsequently, the Judgment was entered in Sonny Ekedayen’s favour and the court granted all the reliefs he sought as the Claimant in the suit.”

In the originating summon, the claimant wanted the court to make a following determination.

“A declaration that the 1st Defendant (the 2nd Defendant’s Managing Director) has no right and/or power to compel and/or force you to either resign from your employment with the 2nd Defendant or proceed on voluntary early retirement therefrom.

“A declaration that the Defendants have no right and/or power to dismiss and/or terminate his appointment with the 2nd Defendant except in accordance with the provisions of your employment contract and conditions of service.

Sequel to the determination, he prayed the court for;

“An order of perpetual injunction restraining the 1st Defendant from compelling and/or forcing Sonny Ekedayen to either resign from your employment with the 2nd Defendant or proceed on voluntary early retirement therefrom.

“An order of perpetual injunction restraining the Defendants from dismissing and/or terminating his appointment with the 2nd Defendant except in accordance with the provisions of your employment contract and conditions of service.

“A consequential order reinstating Sonny Ekedayen to the employment service of the 2nd Defendant. All his unpaid arrears and salaries and other employment entitlements from December 2015 when the suit was filed until date are to be paid by the 2nd Defendant within thirty (30) days of the date of this judgment. Failure to do so will attract 10% interest on your arrears of salaries and entitlements.

In arriving at its landmark decision, the court essentially established and upheld the following key principles (amongst others) of Nigerian employment law.

The purported termination letter, which was served on the Learned Silk (and not personally served on you) by the Defendants after the suit had been filed by you and after the court had made an order directing the parties to maintain status quo pending the determination of the suit, was set aside by the court for violating the status quo order and for non-service thereof on you.

The court ruled that in the absence of any valid termination of your employment by the Defendants, you remain in the employment of the 2nd Defendant.

He maintained that employers have no right or power in law to force an employee’s resignation or early retirement. It is illegal, a gross misuse of power, and in breach of international best practices of employment relations.

In his submissions the Claimant said that he is an Assistant General Manager of the employment of the 2nd defendant (Bank of Industry) and has been in the Employment of the 2nd defendant since February 14 2003.

The claimant was 50 years old and had only served for a period of 12 years in the service of the 2nd defendant as of November 20, 2015, when the 1st defendant without just cause or lawful authority to do so ordered the claimant to resign his employment with the 2nd defendant or proceed on voluntary early retirement therefrom, on the basis that he (1st defendant) could no longer work with the Claimant.