The Presiding Judge, Kaduna Judicial Division of the National Industrial Court, Hon. Justice Bashir Alkali, has ordered International Tobacco Company to pay its former employee, Mr Lawal, the sum of N4.5m for 627 days out-of-station and N454k as terminal benefits.
The Court declared the Tobacco Company’s failure to promptly pay Mr Lawal his terminal benefit from October 17, 2022, when Mr Lawal had submitted all the company properties in his possession, as a breach of the Service Agreement of September 1, 2016.
Justice Alkali further directed International Tobacco Company to pay Mr Lawal the sum of N1m as general damages for willful withholding of entitlements.
From facts, the claimant, Mr Lawal had submitted that he was employed by International Tobacco Company and directed by the Zonal Manager to report to Kaduna in November 2019 on an out-of-station assignment pending confirmation of his permanent posting.
Mr Lawal averred that despite repeated verbal and written requests for clarification and formalization of his transfer, the company failed to respond and issued a backdated transfer letter.
In defence, International Tobacco Company argued that there was no bad faith whatsoever in the dating of Mr Lawal’s transfer letter, as the letter was merely to formalize events that had taken place, and further that Mr Lawal was not entitled to an out-of-station allowance as he was transferred to Zaria permanently.
The company further averred that Mr Lawal was transferred to Zaria in November 2019, and it is a known fact that the formalization letter dates back to November 2019, which was the effective date of Mr Lawal’s transfer to Zaria, Kaduna, and urged the Court to dismiss the case.
In opposition, learned counsel to Mr Lawal, M. B. Olorunmaiye Esq, contended that the company’s backdated transfer letter could not defeat Mr Lawal’s entitlement and that the silence of the company on repeated inquiries amounted to an admission of the out-of-station assignment.
The counsel maintained that throughout his client’s work in Kaduna State between November 5, 2019 and November 5, 2021, the company never communicated to his client that he was transferred and refused to respond to his client’s several requests for a formal instruction from the firm.
Counsel further submitted that the evidence of his client on the out-of-station allowance was unchallenged and credible, and that withholding terminal benefits based on an undisclosed internal policy was an act of bad faith.
After careful evaluation of the submissions of both parties, the Court held that Mr Lawal had proved his case on the preponderance of evidence. The Court found that Mr Lawal was entitled to out-of-station allowance for 627 workdays from November 2019 to November 2021, and that the failure of International Tobacco Company to promptly pay his terminal benefits constituted a breach of the service agreement.
Justice Alkali held that the company’s backdated transfer letter could not negate the entitlement of Mr Lawal and that the deliberate withholding of entitlements caused Mr Lawal hardship.
However, the Court refused Mr Lawal’s claims for N150,000 resettlement grant and N85,000 transportation costs, holding that the claims were not supported by pleadings, evidence, or any contractual provision.
The Court ordered compliance with the judgment within 30 days, without prejudice to the right of appeal by the parties.
