The Presiding Judge, Lagos Judicial Division of the National Industrial Court, Hon. Justice Maureen Esowe has declared the purported dismissal and employment termination of Mr Aruna Collins by LAPO Microfinance Bank Limited as wrongful and a breach of international best practices on labour law.

The Court held that LAPO Microfinance Bank has not adduced cogent, credible evidence to establish that Mr Aruna was guilty of gross misconduct to warrant his dismissal without written notice or payment in lieu of notice.

Justice Eswoe ordered LAPO Microfinance Bank to pay Mr Aruna the sum of N139,163.88 (One Hundred and Thirty-nine Thousand, One Hundred and Sixty-three Naira, Eighty-eight Kobo) as damages and the sum of N250,000.00 (Two Hundred and Fifty Thousand Naira) as cost of action

From facts, the Claimant- Mr Aruna Collins had submitted that he got transferred to another branch without relocation allowance, and due to the distance from his place of residence to the new place, he had challenges with keeping up with his daily resumption time and the bank placed restrictions on his salary account and in December 2020, he was disengaged from work.

He sought A DECLARATION that the purported dismissal of his employment is unfair, unlawful and in breach of the principles of fair hearing and international best practices on labour law, and urged the court to grant the reliefs sought.

In defense, the Defendant- LAPO Microfinance Bank contended that Mr Aruna’s employment was terminated owing to his misconduct and by the proviso in the employment contract he is not entitled to any written notice or payment in lieu given that he was guilty of gross misconduct.

The Bank averred that it is customary for it to place a restriction on the salary accounts of staff or employees that are laid-off to enable it ascertain and reconcile any outstanding indebtedness to it by such employees, and asserted that the restriction on Mr Aruna’s salary account was only placed when he was disengaged from its services and urged the Court to dismiss the suit with substantial cost.

In opposition, the claimant’s counsel, Sylvester Ijie Esq maintained that LAPO Microfinance Bank did not issue the required notice of termination to his client in line with the employment contract, and the reason his client sought permission to be absent from work for certain number of days in a week was due to the restriction placed on his salary account by the employer.

Delivering judgment, the Presiding Judge, Hon. Justice Maureen Esowe held that LAPO Microfinance Bank did not adduce cogent and credible evidence to support the allegation of Mr Aruna’s gross misconduct and cannot place a clog in the wheel of the performance of the Claimant and then accuse him of misconduct.

The Court stated that exhibits tendered proved contrary to the bank’s assertion that the restriction on Mr Aruna’s salary account was only placed when he was disengaged from its services, and declared that such restriction for three consecutive months is unlawful, unjustified and done with utmost bad faith.

Justice Esowe ruled that there are several disciplinary methods or measures open to an employer where it is of the opinion that an employee deserves to be subjected to discipline but does not extend to withholding access to the employee’s salary without tangible reason.