Hon. Justice Isaac Essien PhD of the Lagos Judicial Division of the National Industrial Court, has declared the disengagement of Mr. Uwe from the services of the Nigerian Security Printing and Minting at age 57 years, after 20 years of meritorious service, shortly before his due retirement age on the flimsy excuse that his services were no longer required, as wrongful, unconstitutional and void and a violation of the ILO Termination of Employment Convention.
The Court declared that the disengagement of Mr Uwe from the services of the Nigerian Security Printing and Minting at the verge of his retirement has robbed Mr. Uwe of his legitimate expectation of salary earnings up to his retirement date, and converted the same to Compulsory Retirement in accordance with the Employee handbook with full benefits.
Justice Essien awarded the sum of N27.3m as damages for loss of earnings, N23.36m as exit incentive package, N292,234 as unremitted pension contributions with statutory interest, and N40m as exemplary damages against Nigerian Security Printing and Minting, alongside costs of N5m as cost of action in favour of Mr Uwe.
The Court further ordered the Nigerian Security Printing and Minting to issue an exit clearance letter within seven days to enable Mr. Uwe to access his retirement savings account and to comply with all financial obligations imposed by the judgment, with all sums awarded attracting post-judgment interest as ordered.
From facts, the claimant, Mr. Uwe, had submitted that he was employed by the Nigerian Security Printing and Minting in 2002, confirmed in service, and worked for over 20 years before his disengagement at age 57 on the grounds that his services were no longer required, shortly before his retirement age.
Mr. Uwe contended that by constitutional arrangement, he qualifies as a Public Servant since the Nigerian Security Printing and Minting establishment is owned by an agency of Federal Government of Nigeria, hence the characteristic of permanence of tenure in Public Services inure in his favour, such that he cannot be terminated for no just cause, and accordingly seek the court to apply equity to convert his disengagement by termination to compulsory retirement since he met the criteria for compulsory retirement as contained in the Nigerian Security Printing and Minting employment contractual documents.
Mr. Uwe averred that the disengagement was not carried out in accordance with the conditions of service, that he was not issued the required notice applicable to his cadre, and that the Nigerian Security Printing and Minting refused to issue an exit clearance letter, thereby preventing him from accessing his pension benefits.
In defence, Nigerian Security Printing and Minting maintained that Mr. Uwe was employed as Assistant Manager in the Commercial Department and that his employment relationship was contractual in nature, that Mr. Uwe’s appointment was lawfully terminated upon payment of salary in lieu of notice, and that he was liable to refund unearned allowances paid in advance under its internal policies.
Nigerian Security Printing and Minting further relied on Mr. Uwe’s previous disciplinary records and internal regulations governing staff conduct, urging the Court to dismiss the claims and grant the counterclaim for refund of alleged unearned entitlements.
In opposition, counsel to Mr. Uwe argued that any evidence of misconduct goes to no issue and must be discountenanced for being irrelevant. Learned Counsel maintained that when an employee has served a disciplinary punishment, all matters relating thereto are buried and the employee is given a clean bill of health. Such evidence cannot be used as a basis to justify a termination where it is not mentioned or form part of the reason for termination.
In a well-considered judgment, Justice Isaac Essien held that by virtue of Section 318(1) of the Constitution of the Federal Republic of Nigeria 1999, the Nigerian Security Printing and Minting falls within the public service structure, thereby entitling Mr. Biekpi Uwe to security of tenure consistent with pensionable employment.
The Court reasoned that the Nigerian Security Printing and Minting failed to justify the disengagement in line with its Employee Handbook and applicable labour standards, as the reason given did not fall within recognized grounds for valid termination under employment law principles.
The Court held that reliance on prior disciplinary records was irrelevant, as the disengagement letter did not allege misconduct, and consequently, such evidence was discountenanced as it went to no issue in the determination of the dispute.
The Court refused the claim for salary in lieu of notice on the basis that such relief could not cure the illegality of the termination, and held that the appropriate remedy was assessment of damages based on expected earnings up to retirement.
