Special Reports

“Dismissal After Query, Disciplinary Hearing Not Wrongful” — Court Throws Out Ex-Servest Worker’s ₦4.5m Salary Arrears Claim

Hon. Justice Sanda Yelwa of the Lagos Judicial Division of the National Industrial Court has dismissed the claims filed by one Emma against Servest Nigeria Limited for lacking merit.

The Court held that the dismissal of Emma by Servest Nigeria was not wrongful, as the Company complied with the requirements of fair hearing by issuing Emma a query, receiving his response, and subsequently convening a disciplinary committee before dismissing Emma from employment.

From facts, the Claimant, Emma, had submitted that he was employed by Servest Nigeria in 2015 and was later placed on temporary layoff following the destruction of the business premises of the company during the EndSARS protest in 2020.

Emma maintained that Servest Nigeria failed and refused to pay his salaries for 51 months, resulting in a sum of N4.5m accumulated in salary arrears, while also underpaying his salary for August 2021.

He further contended that after demanding payment of his outstanding salaries, Servest Nigeria levelled allegations of misconduct against him in order to summarily dismiss him from employment.

In defence, Servest Nigeria submitted that Emma was placed on temporary layoff after the business premises of the company were destroyed during the EndSARS protest, and that the reconstruction of the premises took longer than anticipated.

Servest Nigeria maintained that the layoff period was subsequently extended and communicated to Emma through telephone conversations pursuant to the provision contained in the temporary layoff notice.

The Company stated that Emma did not render services during the disputed period and was therefore not entitled to salary based on the principle of no work, no pay.

Servest Nigeria further submitted that Emma was summarily dismissed after a disciplinary process found him guilty of misconduct.

Counsel to Servest Nigeria argued that Emma was issued an audit query, which he responded to, and was subsequently invited to a disciplinary hearing where the allegations against him were considered by the disciplinary panel.

Counsel submitted that the Company complied with the requirements of fair hearing and due process before dismissing Emma from employment and urged the Court to dismiss the suit in its entirety.

In opposition, counsel to Emma argued that the temporary layoff notice expired in December 2020 and was never validly renewed by Servest Nigeria. Counsel maintained that his client resumed work after the expiration of the layoff period and continued rendering services to Servest Nigeria, thereby entitling him to payment of salaries.

Counsel further argued that the disciplinary process relied upon by Servest Nigeria Limited was fundamentally defective, as Emma was allegedly denied the opportunity of participating in the disciplinary hearing despite being present at the venue, and that the hearing remained unsigned and incapable of establishing that any valid disciplinary hearing was conducted before the dismissal.

After careful evaluation of the submissions of both parties, the Presiding Judge, Justice Sanda Yelwa, held that Emma was duly notified of the allegations against him through the audit query, responded to the allegations, and was subsequently invited to a disciplinary hearing before the disciplinary panel found him guilty of misconduct, and the company issued the notice of summary dismissal.

The Court held that Emma failed to provide credible documentary evidence establishing that he rendered services to Servest Nigeria during the disputed period, covering January 2021 to March 2023, and consequently held that his claims for unpaid salaries and salary arrears failed.

Justice Yelwa found that Servest Nigeria tendered evidence showing remittance of PAYE deductions and National Housing Fund deductions, while Emma failed to provide any contrary evidence establishing non-remittance by Servest Nigeria.

“The Claimant has failed to prove his case. The Claimant’s case fails entirely. All the reliefs sought by the Claimant are hereby refused.” Justice Yelwa ruled.