The National Industrial Court in Lagos has ordered OANDO PLC to pay more than ₦4.4 million to a former staff member, Oladunni, after ruling that the company wrongfully terminated her employment without proper notice.
In her judgement, Justice Anthonia Ubaka of the Lagos Judicial Division held that OANDO’s termination letter, dated 26 June 2014, breached the explicit terms of her contract. The court ordered OANDO PLC to pay Oladunni three months’ salary in lieu of notice (₦1,205,186.41), gratuity/end-of-service payment (₦2,772,701.47), and ₦500,000 as the cost of the action. The payments must be made within 30 days.
Oladunni had told the court that she was served with the termination letter while waiting for feedback from the Human Resources department after her one-year study leave. She maintained that she had not breached her employment terms and was treated unfairly.
In its defence, OANDO PLC argued that Oladunni failed to return to work after her study leave expired and did not apply for an extension. The company claimed it was not obliged to give her three months’ notice because her name had been removed from the payroll at the start of her leave.
However, Justice Ubaka agreed with Oladunni’s counsel that OANDO was in breach of the contract by failing to provide notice or pay in lieu of notice at the time of termination. The judge noted, however, that under the company’s staff handbook, reabsorption after study leave is not automatic and that Oladunni had failed to apply for an extension.
