Court Slams Company N10m Damages for withholding Worker’s Benefits 20 years After Exit

The National Industrial Court of Nigeria sitting in Owerri, has awarded N12.67 million against Golden Guinea Breweries Plc for withholding the terminal benefits of a former employee for more than two decades.

Justice Nelson Ogbuanya, in a judgment, ordered the brewery company to pay Mr Chikezie Uwakwe N672,535.69, being his unpaid end-of-service benefits, as well as N10 million in punitive damages and N1 million as costs of litigation.

The court further ordered that the monetary awards be paid within two months of the company receiving the judgment.

From facts, the claimant had approached the court seeking the recovery of his terminal benefits, which, according to the evidence before the court, had been computed and approved by the company shortly after his retirement in 2002

Uwakwe also sought N25 million as general, exemplary and aggravated damages for what he described as breach of contract and unfair labour practices arising from the prolonged withholding of his entitlements.

The claimant told the court that he was employed by Golden Guinea Breweries in April 1977 and retired in June 2002 after approximately 25 years of service. At the time of his retirement, the company allegedly computed his end-of-service benefits at N672,535.69.

However, despite the computation and repeated demands, the company failed to pay the money. Uwakwe subsequently instructed solicitors to demand payment. His lawyers wrote to the company on May 11, 2021, seeking the release of the outstanding benefits.

In a reply dated June 1, 2021, the company’s solicitors reportedly attributed the delay to operational challenges. The court noted that the reply did not deny the debt owed to the former employee.

However, Golden Guinea Breweries Plc did not file a formal appearance or any defence process challenging the claimant’s case.

The claimant’s counsel described the development as a ploy to delay the proceedings and perpetuate injustice against the retired worker. He urged the court to allow the claimant to file his final written address because the defendant had neither filed a defence nor cross-examined the witness.

 

In a well-considered judgment, Justice Ogbuanya held that the claimant had established his entitlement to the unpaid benefits and had also proved the amount claimed.

The court found that Uwakwe had satisfied both requirements through his pleadings, testimony and documentary evidence.

Justice Ogbuanya also noted that the claimant’s evidence was not challenged under cross-examination and was not contradicted by any defence evidence, and that unchallenged evidence may be accepted and acted upon where it is credible and admissible.

The judge consequently entered judgment for Uwakwe in the sum of N672,535.69 as the unpaid end-of-service benefits due to him since his retirement in 2002.