Justice Muhammad Hamza of the Port Harcourt Judicial Division of the National Industrial Court has ordered Alcon Nigeria Limited to pay its former employee N39,707,607 for breach of contract.
In a statement on Monday, the court declared that Alcon Nigeria Limited’s non-payment of Mr. A. Ikenna’s salary from October 2021 to January 2022 constituted a breach of the employment contract.
The court further ordered Alcon Nigeria Limited to pay Mr. Ikenna N16,781,500 as pension contributions for the period from January 2017 to January 2022, N5,762,267.4 as salary for October 2021 to January 13, 2022 (less one month’s payment in lieu of notice), N11,289,600 as End of Service/Gratuity, and N5,874,240 as leave allowance for the 2019/2020 and 2020/2021 periods, plus a 50kg bag of rice, among other payments.
Facts of the case
The claimant stated before the court that he was forced to resign from Alcon Nigeria Limited due to the company’s failure to pay his outstanding benefits.
The claimant’s legal team argued that their client’s obligation to comply with Alcon Nigeria Limited’s exit protocols only arises when the company has fully settled all outstanding salaries, allowances, and pension contributions owed to Mr. Ikenna prior to his resignation.
The claimant contended that, since Alcon Nigeria Limited admitted to breaching the employment contract, it could not claim that he had failed to adhere to exit protocols following his resignation.
The claimant urged the court to grant relief for the various outstanding payments.
In response, Alcon Nigeria Limited’s legal team argued that Mr. Ikenna’s entitlements were withheld because he had not completed the exit process or returned company property.
The defense added, “Withholding these properties and assets is a clear violation of the collective agreement signed between the parties,” claiming that the claimant’s “self-help” actions in withholding Alcon Nigeria Limited’s assets hindered the company’s ability to settle his entitlements as stipulated in the collective agreement.
What the court said
In delivering judgment, Justice Muhammad Hamza held that, based on the evidence presented, the claimant was entitled to salary payments from October 2021 to January 13, 2022, minus one month’s pay in lieu of notice as specified in the company’s collective agreement.
The court further ruled that “Mr. Ikenna has proven his entitlements for unremitted pension contributions and End of Service/Gratuity from Alcon Nigeria Limited to the satisfaction of the court. The assertion that Mr. Ikenna had been employed by Alcon Nigeria Limited since 2004 requires no further proof.”
- On the matter of damages, Justice Hamza held that although Alcon Nigeria Limited breached the employment contract by not paying the claimant’s monthly salary, Mr. Ikenna was not entitled to general or exemplary damages as he had retained company property after his resignation.
- Justice Hamza subsequently ordered the firm to pay the claimant his dues while Mr. Ikenna was ordered to return all Alcon Nigeria Limited property in his possession, including a Lexus vehicle and a laptop, in good condition within seven days.
- The National Industrial Court of Nigeria, established in 1976, presides over cases related to labor disputes, civil matters, child trafficking, employment issues, entitlements, allowances, and workplace sexual harassment.