The National Industrial Court of Nigeria, Lagos Judicial Division, has awarded N10 million in damages against British American Tobacco Marketing Limited over the revocation of an employment offer made to Mr Eithel.
Hon. Justice Anthonia Ubaka, in a judgment, held that the letter of employment issued to Mr Eithel constituted a valid offer which, upon acceptance, created a binding contract of employment between the parties.
Justice Ubaka held that although an employer was entitled to conduct background checks on a prospective employee, such checks must be carried out in accordance with the stipulated process and any adverse finding relied upon must be properly established.
The Court found that British American Tobacco Marketing had failed to disclose or adequately establish the alleged unfavourable outcome of the background check which it relied upon in terminating the employment arrangement.
The Court consequently declared the termination of Mr Eithel’s employment on the basis of the alleged background check wrongful.
From facts, the claimant- Mr Eithel had submitted that after completing the recruitment process and supplying the information requested by the company, he was informed by telephone that he would be engaged.
Relying on the representation, he said he resigned from his former employment in preparation for taking up the new position.
Mr Eithel further claimed that the alleged negative outcome of the background check was never disclosed to him or his representatives despite several requests. He also alleged that he was not given an opportunity to verify, explain or challenge the outcome of the check.
The claimant maintained that he relied on the company’s representations by disengaging from his former employment, incurring expenses in preparation for his relocation to Nigeria and making other arrangements to assume his new position.
In its defence, In defence, British American Tobacco Marketing averred that Mr Eithel’s resignation preceded its conditional offer of employment and was of his own volition, and that its employment process was formal and subject to the satisfactory completion of pre-employment medical and background checks.
British American Tobacco Marketing stated that the background check conducted on Mr Eithel returned negative and unsatisfactory results and gave them reasonable cause for concern.
The firm maintained that it notified him of the unsatisfactory outcome and its decision not to proceed with the employment, and that the conditional offer expressly reserved British American Tobacco Marketing’s right to revoke the offer without notice where the background check produced a negative outcome.
In a well-considered judgment, Hon. Justice Anthonia Ubaka held that British American Tobacco Marketing could not rely on a technicality after issuing Mr Eithel two letters of employment, continuing with Mr Eithel, applying for his STR visa and approving the purchase of his ticket.
The Court therefore held that Mr Eithel accepted the offer and that there was a valid contract between the parties.
The Court further held that the evidence before it showed that the parties had agreed on Mr Eithel’s salary, other benefits and relocation benefits and, as a pointer, that the employment was valid.
The Court also relied on British American Tobacco Marketing’s conduct in commencing the STR visa process as evidence supporting the existence of the employment arrangement between the parties.
Justice Ubaka held that Mr Eithel’s resignation from his former employment became effective upon receipt of his resignation letter and stated that no person is entitled to keep two jobs at the same time.
The Court therefore held that Mr Eithel was entitled to recompense in the nature of damages for the loss suffered as a result of relying on the company’s employment offer.
Accordingly, Justice Ubaka ordered British American Tobacco Marketing to pay N10 million in damages and N500,000 as costs to Mr Eithel, with the sums to be paid within 30 days.