A Lagos court has slammed Neimeth International Pharmaceuticals Plc with over N7.5 million in damages, unpaid entitlements and legal costs for unlawfully terminating the employment of one of its former managers, Lawrence Onwuegbuchi.
Justice I. J. Essien of the Lagos Division of the National Industrial Court of Nigeria (NICN) declared the termination of the appointment of former Neimeth District Manager (West), Mr Lawrence Onwuegbuchi, unlawful, null and void.
The judge delivered the verdict in a suit marked NICN/LA/222/2022, filed by Onwuegbuchi against the pharmaceutical company.
Although the court ruled that Onwuegbuchi could not be reinstated because his employment was governed by a master-servant relationship, Justice Essien held that Neimeth breached the terms of his employment by failing to properly terminate his appointment and pay his lawful entitlements.
The court ordered the company to pay him a total of N8.5 million under four heads: N1,952,007 in unpaid monetary entitlements, N5 million as general damages for unlawful termination, N549,000 for official vehicle repair expenses, and N1 million as the cost of the suit.
The judgment also directed that the sums be paid within 15 days, failing which they will attract 10 per cent interest per annum until fully paid.
‘I WAS TOLD TO STOP WORK’
Onwuegbuchi had told the court that after several years of service, during which he rose to the position of District Manager (West), he was orally ordered to stop working in December 2014 by the company’s Sales Director.
According to him, he was subsequently denied access to the workplace, while his salaries, allowances, approved expenses and other employment benefits were allegedly withheld.
He approached the court in 2022 seeking several reliefs, including a declaration that his employment was still subsisting, reinstatement, payment of outstanding salaries and allowances running into millions of naira, damages and interest.
NEIMETH FOUGHT BACK
Neimeth, however, challenged the suit, arguing that it was statute-barred because it was filed about eight years after the alleged termination of Onwuegbuchi’s employment on December 9, 2014.
The pharmaceutical company also maintained that his employment had been validly terminated and denied owing him the amounts he claimed.
But Justice Essien dismissed the company’s preliminary objection.
The judge held that the case fell under the recognised exception of continuing injury, noting that the employer had allegedly failed to provide the claimant with details of his terminal benefits while continuing to withhold his lawful entitlements.
The court further found that Neimeth failed to establish that a termination letter had actually been served on Onwuegbuchi.
HANDBOOK ‘VIOLATION’
Justice Essien also held that the termination did not comply with Neimeth’s employee handbook, which required the Chief Executive Officer’s approval before the employment of a senior management employee could be terminated.
The judge, relying on evolving international labour standards, including the ILO Termination of Employment Convention, 1982 (Convention No. 158), stressed that employers should not terminate employment without a valid reason linked to an employee’s conduct, capacity or the operational requirements of the organisation.
With the ruling, Neimeth has been ordered to pay the judgment sums within 15 days or face accumulating interest until the debt is fully settled.
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