News

Former Employee To Receive N160 Million From Airtel Over Wrongful Termination

The National Industrial Court in Lagos has ordered Airtel to pay N160 million to Abdul-Hakeem Olasewere, an employee who was unlawfully dismissed on Christmas Eve in 2013.

In his ruling on April 7, Justice J. D. Peters stated that Airtel’s termination of Mr. Olasewere’s employment was “wrongful and without any justifiable basis.”

He was irritated by the company’s decision to fail to present a rationale for retrenching a former employee over the holiday season.

“It is against the international best practice as well as international labour standard to lay off a performing staff without justifiable reasons,” said the judge.

“At the global level, termination of employment at will and without reason is no longer fashionable or acceptable.

“We must bear in mind that no nation can be an island to herself and any nation that seeks to do so will be doing so at her own peril.

“Therefore, the need to ensure that the Nigerian labour jurisprudence is in tandem with what is obtainable at the international scene found reflection in the National Industrial Court Act, 2006.”

The Case

Mr. Olasewere claims that Airtel recruited him in 2008. He advanced to the rank of VP, Operations, and Support after a succession of promotions.

He claimed that he has routinely rated as one of Airtel’s top human resources managers and that he was only two steps away from the post of Chief Executive Officer on the management’s organization chart. He stated he got an internal message in November 2013 alerting him that he had been demoted from VP, Operations, and Support to VP Special Projects Site Optimisation, which shocked him.

According to him, the new post reduced his responsibilities because he was no longer accountable to any senior or general managers or external human resources, and he solely reported to the CEO.

Mr. Olasewere said on November 11, 2013, the company’s Chief Technology Officer and Director of Human Resources summoned him to a meeting where they told him that some Integrated Site Maintenance (ISM) vendors had sent in some petitions against him and the evidence was damning. They further told him that he needed to step aside for three to four days for a proper investigation to be carried out.

Mr. Olasewere said they did not communicate with him after ten days and he wrote to request a meeting for disclosure of the allegations against him. He said the company informed him that there was at least one petition bordering on wrongful dismissal and another allegation of improper conduct unbecoming of someone in his position.

Mr. Olasewere said they summoned him to another meeting on December 12, 2013, with the Chief Executive Officer, Chief Operating Officer, Chief Finance Officer, SCM Director, and Jubril Saba of the Human Resources Department. He said he, again, requested the disclosure of the allegations against him but they again refused.

On December 24, 2013, Mr. Olasewere said the company terminated his employment without notice.

According to him, “the termination of his employment was accentuated by malice, pre-meditated and a deliberate attempt and machination of Mr. Segun Ogunsanya (the CEO) to oust any possible likely successor to the office of the Chief Executive Officer in the event of the impending expiration of his contract of employment.”

Mr. Olasewere sought a declaration that the termination of his employment is wrongful and an order for the payment of N1.3 billion as special damages.

He also sought an order for the payment of N100 million as general damages for the breach of the contract of employment and disciplinary policy and procedure, among others.

Defendants

Airtel defended itself by claiming that the company has no contractual responsibility to identify the reason, cause, or rationale for terminating an employee’s job.

Mr. Olasewere’s transfer to a new role, according to the company, does not constitute a demotion, victimization, or disciplinary consequence.

It further said that, in the unusual event that the court finds that Mr. Olasewere’s employment was terminated unlawfully, the only remedy open to him is an award of pay for the period of notice he has already been paid. It noted that the former employee was to repay N4.9 million, the outstanding sum after the remuneration due him was deducted from a N13.2 million car loan.

The Verdict

Mr. Peters highlighted in his verdict that Mr. Olasewere was not given a fair hearing before being fired by Airtel.

“This court has found the termination of the employment of the Claimant wrongful,” said the judge.

“Not only is the termination wrongful, the conduct of the Defendant as exemplified or represented by its CEO Mr. Segun Ogunsanya is despicable and a stain on the corporate image of the Defendant to have allowed personal ambition and self-serving interest to overshadow the overall interest of the entire corporate entity.

“From the pleadings and evidence led by the parties, I see also some elements of fraudulent activities being covered by those who wanted the Claimant out of the Defendant by all means. Whether it is called fraud or corruption, it amounts to the same thing.”

The judge also lambasted Airtel for doing everything possible to frustrate the subpoena issued to its CEO, Mr. Olusanya.

“The only plausible inference available to the court is that the Defendant was afraid of the evidence of Mr. Segun Ogunsanya as it would have worked against it if allowed to be heard.

“Accordingly, I hold that the evidence of the Claimant on allegations of malice leading to the termination of his employment remains intact, unchallenged, and uncontroverted.”

The judge awarded N100 million exemplary damages against Airtel. He also awarded Mr. Olasewere his two years salary amounting to N60 million as general damages for the wrongful termination of his employment without a justifiable basis.

He further awarded and ordered Airtel to pay the former employee N1 million as the cost of the litigation.

He, however, ordered the Claimant to pay N4.9 million being the outstanding balance of his Vehicle Purchase Loan.

“All the sums of money due and payable under this judgment both to the Claimant and the Counter claimant shall be paid with interest at the rate of 20% per annum from the date of this judgment until final liquidation,” he added.

Ada Peter
Kindly share this story:
Kindly share this story:
Share on whatsapp
Share on facebook
Share on twitter
Share on linkedin
Share on telegram
Share on facebook
Top News

Related Articles