On Whether an employer can determine the employment of an employee without a valid reason - (Duru
v. Skye Bank Plc [2015] 59 N.L.L.R (Pt. 207) 680)
The termination of Employment Convention, 1982 (No. 158) and Recommendation No. 166 regulate termination of employment at the initiative of the employer. Article 4 of this Convention requires that the employment of an employee shall not be terminated unless there is a valid reason for such termination connected with his capacity or conduct or based on the operational requirements of the undertaking, establishment or service. The Committee of Experts has frequently recalled in its comments that; the need to base termination of employment on a valid reason is the cornerstone of the Convention’s provisions. This is the global position on employment relationship now. It is the current International Labour Standard and International Best Practice. Although this Convention is not ratified by Nigeria, since March 4, 2011 when the Constitution of the Federal Republic of Nigeria (Third Alteration) Act, 2010 came into effect, this International Best Practice and International Labour Standard to matters like this by virtue of section 254C(1)(f) and (h) of this Constitution as amended. In other words, by the provisions of section 254C (1) (f) and (h) of the Constitution as amended, the National Industrial Court can now move away from the harsh and rigid Common Law posture of allowing employer to dismiss its employee for bad or no reason at all. (Pp. 724-725, Paras. D-B)
Per KOLA-OLALERE, J. (Pp. 725-726, Paras. B-A)
“Consequently, I find that it is too harsh for the defendant to inflict so much pain and loss on the claimant by dismissing him without any reason; more so, that the current International Labour Standard and International Best Practice is that an employer terminating or dismissing the employment of its employee is to do so with valid reason. I, therefore, hold that it is wrong for the defendant to dismiss the claimant without any reason in this instance.
Furthermore, even though no reason is stated in Document C7, the letter of dismissal for the claimant’s dismissal; I find from the total evidence before me that he basis for the defendant’s action is its allegation of fraud and negligence against the claimant in opening the Operational Account for the Rivers State Board of Internal Revenue with the defendant as a result of which the sum of N444m was illegally withdrawn from the Account. See also Document C6 (Internal Memo through which the claimant was suspended indefinitely without pay on the incidence of Conversion and Fraudulent Withdrawal of 444 million Naira Fund of Rivers State Board of Internal Revenue) and Document C9 ( the internet Publication that the claimant was dismissed following his role in a Conversion and Fraudulent Withdrawal on a State’s Board of Internal Revenue Account in his Region). See further paragraphs 5,7, and 15 of the Statement of Defence and counsel’s argument in paragraphs 4.9 to 4.18 of the defendant’s final written address. Therefore, since both parties argued this issue extensively, the Court will consider whether or not the claimant's dismissal on this basis is justified.”
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