July 31, 2025

Court Orders Shoprite to Pay N10.69m for Wrongful Termination

The National Industrial Court in Ibadan has ordered Retail Supermarkets Nigeria Limited, operators of the Shoprite brand, to pay N10.69 million in compensation to a former employee, Atinuke, for unlawful termination of employment.

Presiding Judge, Justice Dele Peters, ruled that Atinuke’s dismissal constituted unfair labour practice and breached both her employment contract and international labour standards. He said the company failed to follow due process and denied the employee the right to a fair hearing prior to termination.

Justice Peters declared that the process violated Nigeria’s obligations under International Labour Organisation (ILO) Convention 158, which sets global standards for protection against unjust dismissal.

The court awarded Atinuke N190,000 as salary in lieu of notice, N10 million in damages for wrongful termination, and N500,000 as legal costs. Shoprite was given a 30-day deadline to make the full payment.

Atinuke had told the court that she was abruptly dismissed without an opportunity to defend herself and was barred from returning to work the next day, effectively denying her a chance to respond to any allegations.

In its defence, Shoprite insisted that due process had been followed and argued that the former employee was not entitled to any compensation. However, the court found multiple procedural lapses, including a lack of notice and inconsistencies in the grounds for suspension.

“The reasons for the termination carried a damaging stigma,” Justice Peters said, justifying the award of substantial damages beyond the standard payment in lieu of notice.

He concluded that Shoprite’s actions breached both internal policy and Nigeria’s commitments under international labour law. Legal analysts believe the ruling could set a precedent for greater accountability and protection of workers’ rights in Nigeria’s evolving labour market.

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