Measurement of Quantum of Damages for Wrongful Termination of Employment in Nigeria
Gleaning Lessons from Ghana and Malaysia
DOI:
https://doi.org/10.19184/ejlh.v12i2.46580Abstract
In a master-servant employment relationship, when an employee’s employment is wrongfully terminated, the traditional measure of damages upon a successful legal challenge is the amount the employee would have earned during the agreed notice period. However, the National Industrial Court of Nigeria (NICN), empowered by the Constitution (Third Alteration) Act, 2010 to apply international best labour practices and International Labour Organisation (ILO) standards, has departed from this position. This departure was affirmed by the Court of Appeal (CA) in Sahara Energy Resources Ltd. v. Oyebola, where the court held that, in deserving cases, damages exceeding the ordinary notice period can be awarded. This paper utilises an analytical method to examine the impact of this decision on the jurisprudence of damages for wrongful termination in Nigeria. It probes whether the decision permits the NICN to award unpredictable damages that prejudice employers. The paper argues that the decision promotes employment security amidst Nigeria's unprecedentedly high unemployment rate. By examining current legislation and practice in Ghana and Malaysia, this research aims to draw lessons for Nigeria. It concludes that the decision is a welcome development. The paper recommends that the CA, as the final court on labour matters, should sustain this precedent, as it aligns the law with modern realities. Furthermore, the decision should be given statutory backing by amending relevant domestic labour legislation, as is the case in Malaysia and Ghana.
Keywords: Dismissal, Ghana, Malaysia, Nigeria, National Industrial Court of Nigeria.
Downloads
References
Adeniyi v Governing Council, YABATECH, [1993] 6 NWLR 426, Pt. 300.
Aero Contractors of Nigeria Limited v National Association of Aircrafts Pilots and Engineers (NAAPE) & Ors, 2014.
Afrotrin v Attorney General of the Federation, [1996] 9 NWLR 634, Pt. 755.
Agbaje v National Motors Limited, [1970] 1 All NLR 1.
Akorfu v State Fishing Cooperation, [1987] DLH 2065.
Aloysius v Diamond Bank Plc, [2015] 58 NLLR 92, Pt. 199.
Aryee v State Construction Corporation, [1984] 1 GLR 432.
Association of Bank Officers, Malaysia v Oversea-Chinese Banking Corporation Ltd, [1994] 3 CLJ 169.
Assunta Hospital v Dr A Dutt, [1981] 1 MLJ 105.
Bello Ibrahim v Ecobank Plc, 2019.
Boyo v LB of Lambeth, [1994] ICR 727.
British Airways v Makanjuola, [1993] 8 NWLR 276, Pt. 311.
Chukwuma v Shell Petroleum Company Nig Ltd, [1993] 4 NWLR 512, Pt. 289.
Faustina Asantewaa & 7 ors v Registered Trustees of the Catholic Church of Koforidua, [2016] 92 GMJ 176 (CA).
FBN Plc v Chinyere, [2012] 2 NLLR 62, Pt. 41.
George Akpass v Ghana Commercial Bank Ltd, [2021] DLSC-10768 18.
Gunton v Richmond Upon Thames, [1981] 1 CH 448.
Hadley v Baxendale, [1854] 9 ER 341, 354 & 355.
Hemans v GNTC, [1978] GLR 4.
Hotel Jaya Puri Bhd v National Union of Hotel Bar & Restaurant Workers & Anor, [1980] 1 MLJ 109.
Ibama v SPDC Nig Ltd, [2005] 10 SC 62.
Idoniboye-Obu v NNPC, [2003] 2 NWLR , Pt. 805.
Idoniboye-Obu v NNPC, [2003] 2 NWLR 58, Pt. 805.
Isaac Osei Nyatankyi v Ghana Grid Com Ltd, .
Isheno v Julius Berger Nig Plc, [2012] 2 NLLR 127, Pt. 41.
Iweha v Ebice Company Ltd, [2004] 11 CLRN 135.
Jasman Saidin v Hotel Istana, [2015] 3 ILR 299.
Kalango v Dokubo, [2004] 1 NLRR , Pt. 1.
KFC Technical Service Sdn Bhd v Industrial Court of Malaysia & Anor, [1992] 1 MLJ 564.
KFC Technical Services Sdn Bhd v Kesatuan Kebangsaan Pekerja-Pekerja Perdagangan, [1989] 1 ILR 535.
Klah v Phoenix Insurance Ltd, [2012] 2 SCGLR 1139.
Kobea v Tema Oil Refinery, [2003] SCGLR 2 1039.
Kobi v Ghana Manganese Co Ltd, [2007] SCGLR 771.
Longe v First Bank of Nigeria Plc, [2010] 2 CLRN 21.
Lt Col S B Ashun v Accra Brewery Ltd, [2009] SCGLR 81.
M & B Flour Mills Ind Ltd v FBTSSA, [2004] 1 NLLR 247, Pt. 2.
Mobil Producing Nigeria Unltd v Udo, [2008] 36 WRN 62.
Nartey-Tokoli v Volta Aluminium Company, [1987] 2 GLR 532.
Nestle Food Storage (Sabah) Sdn Bhd v Terrence Tan Nyang Yin, [2002] 1 ILR 280.
NURTW v Ogbodo, [1998] 2 NLWR 189, Pt. 537.
Oaks Pensions Ltd v Olayinka, [2017] LPELR-43207 (CA) LPELR .
Oforishe v Nigerian Gas Company Ltd, [2018] 2 NWLR 35, Pt. 1602.
Olaniyan & Ors v UNILAG, [1985] 2 NWLR 599, Pt. 9.
Olanrewaju v Afribank (Nig) Plc, [2001] 13 NWLR 691, Pt. 731.
Oloruntoba-Oju v Dopamu, [2005] 4 NLLR 246, Pt. 10.
Oloruntoba-Oju v Dopamu & Amor, [2008] 4 SCM 128.
Pengasan v Schumberger Anadrill, Nigeria Ltd, [2008] 11 NLLR 164, Pt. 29.
Ridge v Baldwin, [1963] APPLR 03/14, HL .
Sahara Energy Resources Ltd v Oyebola, [2020] LPELR 51806.
Salihu v Tin Associated Minerals Ltd, [1958] NMLR 56.
Samson Ediagbonya v Dumez, [1986] 3 NWLR 53, Pt. 31.
Savannah Bank Nigeria Ltd v Pan Atlantic Shipping and Transport Agencies Ltd & Anor, [1987] 1 NWLR 212, Pt. 42.
Sivabalan Poobalasingam v Kuwait Finance House (Malaysia) Berhad, [2016] 1 ILR 542.
Skye Bank Plc v Iwu, [2017] 7 SC 1, Pt. 1.
Societe Generale (London Branch) v Geys, [2021] UKSC 63, [2013] 1 AC 523 .
Sona Breweries Plc v Sir Shina Peters & Anor, [2005] 1 NWLR 489, Pt. 908.
Soon Bao Corporation Sdn Bhd & Ors v Kesatuan Pekerja-Pekerja Perusahaan Logam, [2000] 1 ILR 413.
Suit No FHC/ABJ/CS/313/2004, , ruling delivered.
Teh Fook Wai v Panasonic Manufacturing Malaysia Bhd, [2012] 2 LNS 1183.
Telekom Malaysia Bhd v Ramli Akim, [2005] 6 CLJ 487.
Turkson v Mankoadze Fisheries Ltd, [1987] JELR 65433 (HC).
Udoh v OHMB, [1993] 1 NWLR 45, Pt. 304.
W N D C v Abimbola, [1966] NMLR 381.
Zakaria Ahmad v Airasia Bhd, [2014] 3 ILR 201.
Agomo, Chioma K, Nigerian Employment and Labour Relations Law and Practice (Lagos: Concept Publications Ltd., 2015).
Ayadurai, Dunston, Industrial Relations in Malaysia, 2nd ed edn (Kuala Lumpur: Malayan Law Journal Sdn. Bhd, 1998).
Emiola, Akintunde, Nigerian Labour Law (Ogbomosho: Emiola Publishers Nig. Ltd., 2008).
Mohamed, Ashgar Ali, Dismissal from Employment and the Remedies, 2nd ed edn (Malaysia: Lexis Nexis, 2014).
Oji, Elizabeth A & Offornze D Amucheazi, Employment and Labour Law in Nigeria (Lagos: Mbeyi and Associates (Nig.) Ltd., 2015).
Venkatraman, Anantaraman, Malaysian Industrial Relations: Law and Practice (Serdang: Universiti Putra Malaysia Press, 1997).
Akeredolu, Alero E & David T Eyongndi, “Jurisdiction of the National Industrial Court under the Nigerian Constitution Third Alteration Act and Selected Statutes: Any Usurpation?” (2019) 10:1 The Gravitas Review of Business and Property Law, University of Lagos.
Akintayo, John Oluwole O & David T Eyongndi, “The Supreme Court Decision in Skye Bank Ltd. v. Victor Iwu: Matters Arising” (2018) 9:3 The Gravitas Review of Private and Business Law.
Amucheazi, Offornze D & Elizabeth A Oji, “The Status of the National Industrial Court under the 1999 Constitutio” (2008) 2:3 Nigerian Journal of Labour Law & Industrial Relations.
Animashaun, Olushola, “Unfair Dismissal, a Novel Idea in the Nigerian Employment Law?” (2008) 2:2 NJLL & IR.
Appiah, Kwame Yaro & Kwame Richard Klu, “Exploring the Distinctions between Dismissal and Termination under Ghanaian Labour Law: Insights from the George Akpass Case” (2024) 6:1 American Journal of Law.
Arowosegbe, Oluwakayode O, “National Industrial Court and the Quest for Industrial Harmony and Sustainable Economic Growth and Development in Nigeria” (2011) 5:4 Nigerian Journal of Labour Law & Industrial Relations.
Atilola, Bimbo, Michael Adetunji & Michael Dugeri, “Powers and Jurisdiction of the National Industrial Court of Nigeria under the Constitution of the Federal Republic of Nigeria (Third Alteration) Act 2010: A Case for Its Retention” (2012) 6:3 Nigerian Journal of Labour & Industrial Relations.
Cabrelli, David & Rebecca Zahn, “The Elective and Automatic Theories of Termination at Common Law: Resolving the Conundrum?” (2012) 41:3 Industrial Law Journal.
Chiafor, A B, “Reflections on the Constitutionality of the Superior Court of Record Status and Exclusive Jurisdiction Clauses of the NIC Act 2006” (2007) 1:3 Nigerian Journal of Labour Law & Industrial Relations.
Erugo, Sam, “Security of Employment in Nigeria: A Case for Statutory Intervention” (2008) 1:1 Nigerian Journal of Labour Law & Industrial Relations.
Eyongndi, David T, “The Powers, Functions and Role of the Minister of Labour and Productivity in the Settlement of Trade Disputes in Nigeria: An Analysis” (2016) 9:1 Journal of Public Law and Constitutional Practice.
Eyongndi, David T & Adekunbi Imosemi, “Aloysius v. Diamond Bank Plc.: Opening a new Vista on Security of Employment in Nigeria through the Application of International Labour Organisation Convention” (2023) 31:3 African Journal of International and Comparative Law.
Eyongndi, David T, Adekunbi Imosemi & Uche Nnawulezi, “Protection of Domestic Workers under Nigerian Law: Gleaning Lessons from ILO, Ghana, South Africa and India” (2024) 15:1 Jindal Global Law Review.
Eyongndi, David T & C J Okongwu, “The Legal Framework for Combating Child Labour in Nigeria” (2008) 2:1 UNIPORT Law Review.
Eyongndi, David T & Kingsley Osinachi N Ou, “The National Industrial Court Jurisdiction over Tortious Liability under Section 254C (1)(A) of the 1999 Constitution: Sieving Blood from Water” (2020) 10 Babcock University Socio-Legal Journal.
Gyesi, Solomon, “Termination of Contract of Employment; Reason(s) required or not? A Review of Ghana’s Labour Statutes and Case laws” (2024) 3:2 University of Cape Town Law Journal.
Hamid, Zuraini Ab, Siti Fazilah & Ashgar Ali Mohamed, “Rights of Migrant Workers under Malaysian Employment Law” (2018) 11:2 Journal of East Asia and International Law.
Hill, Marvin F Jr, “Arbitration as a Means of Protecting Employees from Unjust Dismissal: A Statutory Proposal” (1982) 3 Northern Illinois University Law Review.
Idornigie, Paul O, “The National Industrial Court of Nigeria: Analysis of Powers, Cases and Jurisdiction” (2013) 7:2 Nigerian Journal of Labour Law & Industrial Relations.
Lowy, Joan Bertin, “Constitutional Limitations on the Dismissal of Public Employees” (1976) 43:1 Brooklyn Law Review.
McMullen, John, “A Synthesis of the Mode of Termination of Contracts of Employment” (1982) 41:1 Cambridge Law Journal.
Mohamed, Ashgar Ali Ali, Mohd Akram Shair Mohamed & Farheen Baig Sardar Baig, “Compensatory Award for Unfair Dismissal in Malaysia: Criteria in Assessment of Award” (2016) 2:6 IJASOS.
Nwagbogu, Gerald M, “Repositioning the National Industrial Court for Industrial Relations Facelift” (2013) 7:2 Nigerian Journal of Labour Law and Industrial Relations.
Ojo, Gbenga, “Legal Redress for Unlawful Termination of Employment: It is Time to Call a Spade a Spade” (2007) 1:3 NJLL & IR.
Oluwadayisi, Akin O, “Termination of Employment and Breach of Fundamental Rights: A Review of Folarin v Incorporated Trustees of Clinton Health Access Initiative” in in Yemi Akinseye-George, Samuel Osamolu, & Akin O Oluwadayisi (eds), Contemporary Issues in Labour Law, Employment and National Industrial Court Practice and Procedures: Essays in Honour of Honourable Justice Babatunde Adeniran Adejumo (Abuja: LawLords Publications, 2014).
Worugji, Israel N, James E Archibong & Eni Alobo, “The NIC Act (2006) and the Jurisdictional Conflict in the Adjudicatory Settlement of Labour Disputes in Nigeria: An Unresolved Issue” (2007) 1:2 Nigerian Journal of Labour & Industrial Relations.
Arhon, Arissa & Shariffullah Majeed, “Employment Special Alert: Industrial Court Remedies: Reliefs in a Claim for Unfair Dismissal”, online: <https://www.mondaq.com/employee-rights-labour-relations/1383194/employment-special-alert-industrial-court-remedies-reliefs-in-a-claim-for-unfair-dismissal>.
Bediako, Kwame Asare, “Grounds for Termination of Employment Contract under the Labour Law Act 2003 (Act 651)”, online: <https://www.mondaq.com/redundancylayoff/1249016/grounds-for-termination-of-employment-contract-under-the-labour-law-act-2003-act-651>.
Douglas, Michael, “Questioning the Right to be Forgotten” (13 July 2016) Rochester, NY.
Ndede, Alexander, “Termination of Employment v. Dismissal: brief perspective of the laws of Ghana”, online: <https://gh.linkedin.com/in/alexander-ndede-mba-sphri%E2%84%A2-acihrm-907996a4>.
Ramesh, Harikartik & Kali Srikari Kancherla, “Unattainable Balances: The Right to be Forgotten” (2020), online: NLIU Law Review.
Tio, Timothy, “Third Alteration to the 1999 CFRN: The Game Changer in Nigerian Labour Law” (2020), online: Naija Cyber Lawyer <https://naijacyberlawyer.blogspot.com//2020/12/third-alteration-to-the-1999-cfrn-the-game-changer-in-nigerian-labour-law>.
Won, Dato F, “Unfairly Dismissed? An Employee may be Paid up to 24 months of Salary” (2020), online: Shang & Co <https://www.shangco.com.my/post/unfair_dismissal_reinstatement_backwages_compensation>.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 David Tarh-Akong Eyongndi, Faith Opara, Oluwaseyi Leigh, Uche Nnawulezi
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
