Nigeria
Upholding binding contracts – Mrs. Adeoti Olaide Adebanjo v. Macmillan Nigeria Publishers Ltd (case law)
Impact date: 20 March 2025 The National Industrial Court found that the Claimant was employed for over eight years and was terminated without prior notice by the Defendant. The Court held that a valid contract of employment existed, and that the Defendant could not unilaterally alter the terms in its conditions of service. Because the Defendant failed to enter a defense, the Court accepted the unchallenged evidence that the Claimant was disengaged without payment of her entitlements, including one month’s salary in lieu of notice and gratuity.
Employer implications/action needed Employers must honor written employment contracts, as courts will enforce such documents where terms are clear and uncontested. Additionally, employment terminations must comply with contractual notice and payment obligations to avoid financial penalties.
Employer risk Non-compliance with agreed contractual terms, particularly termination without notice, exposes employers to liability for wrongful termination, monetary awards for gratuity, legal costs, and reputational harm. Additionally, failure to appear or defend in court proceedings results in uncontested judgments, significantly increases employer exposure.
Court invalidates indefinite suspension of sick employee – Ahmed A.T. Mohammed v. Upper Benue River Basin Development Authority (case law)
Impact date: 6 May 2025 The National Industrial Court of Nigeria ruled in favor of the Claimant, against the Defendant. The Claimant was indefinitely suspended without pay despite presenting credible evidence of severe health challenges, including medical reports and prior surgeries. The Defendant failed to investigate his condition or follow proper disciplinary procedures under the Public Service Rules. The National Industrial Court held that the suspension was unlawful, constituted constructive dismissal, and ordered reinstatement with full salary arrears, ₦2 million in general damages, and ₦1.5 million in legal costs.
Employer implications/action needed Public sector employers must strictly adhere to the Public Service Rules when suspending employees, especially those with documented medical conditions. Before issuing a suspension, they must conduct a fair investigation, verify medical claims with healthcare providers, and ensure any disciplinary action is time-bound and justified in the public interest. Indefinite suspensions without clear justification or due process should be avoided to prevent legal invalidation.
Employer risk Failure to comply with procedural requirements exposes employers to findings of unlawful suspension or constructive dismissal, leading to mandatory reinstatement, payment of withheld salaries, damages for unfair labour practices, and legal cost awards. Such outcomes also carry reputational risks and undermine administrative credibility.
Right to voluntary resignation – Dr. Michael Ikuesan v. Chief of Naval Staff & Nigerian Navy (case law)
Impact date: 8 May 2025 In this case, the National Industrial Court of Nigeria enforced the constitutional right of a public servant to resign, holding that under section 306(2) of the 1999 Constitution—”The resignation of any person who is employed from any office established by the constitution shall take effect when the writing signifying the resignation is received by the authority or person to whom it is addressed or by any person authorized by that authority to receive it. on the date the letter of resignation is received by the authority or person to whom it is addressed”.
Dr. Michael Ikuesan, an optometrist and former enlisted seaman in the Nigerian Navy, served for 11 years before submitting a resignation letter on 7 December 2017, which the Navy acknowledged the following day. Following his resignation, the Navy stopped his salary but refused to issue him a discharge certificate. Dr. Ikuesan approached the National Industrial Court seeking declarations affirming his right to resign and compelling the issuance of the certificate. The Navy challenged the Court’s jurisdiction and argued that he breached military conditions of service. The Court held that the resignation took effect on the date of receipt under section 306(2) of the Constitution, declared the resignation valid, and ordered the Navy to issue a discharge certificate.
Employer implications/action needed Employers, particularly military and paramilitary institutions, must recognize that resignation by a public officer takes legal effect once the resignation letter is received, pursuant to section 306(2) of the Nigerian Constitution. Once acknowledged, employers are obligated to cease employment-related actions against the employee and issue necessary exit documentation (e.g. discharge certificate). Failure to issue such documentation may lead to judicial compulsion and declarations against the employer.
Employer risk Employers who disregard constitutional provisions, such as an employee’s right to resign, risk being found in violation of the law, which can lead to binding judicial orders and adverse judgments. For public agencies, such non-compliance not only exposes them to legal consequences but also damages public trust and institutional credibility.
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