Measurement of Quantum of Damages for Wrongful Termination of Employment in Nigeria

Gleaning Lessons from Ghana and Malaysia

Abstract

Under master-servant employment relationship, where an employee’s employment is wrongfully terminated; upon a successful challenge, the quantum of damages the employer is liable to pay is the amount the employee would have been entitled if the employment had been rightly terminated based on the agreed period of notice. However, the National Industrial Court of Nigeria (NICN), pursuant to the 1999 Constitution of the Federal Republic of Nigeria (Third Alteration) Act, 2010 which empower it to apply international best labour practices and International Labour Organisation (ILO) Conventions, treaties and recommendations, has departed from the above position with affirmation by the Court of Appeal (CA) in Sahara Energy Resources Ltd. v. Oyebola. The CA held that in deserving cases of wrongful termination/dismissal, the court will award damages over the amount ordinarily entitled. This paper, through analytical method, examines the impact of this decision on the jurisprudence of quantum of damages on wrongful termination/dismissal from employment in Nigeria. It probe the issue, whether or not the decision is a nod for the NICN to award unpredictable damages to damn employers for wrongful termination. It argues that the decision promotes security of employment amidst unprecedented high level of unemployment in Nigeria. It examines the position in Ghana and Malaysia with a view to drawing lessons for Nigeria. It concludes that the decision is a welcomed development. The paper recommends that the CA, as the final court on labour and employment matters, should sustain the tides ushered by the decision as it has brought the law on the issue in tandem with modern reality and same should be given statutory flavour like in Malaysia.