The National Industrial Court (NIC) in Lagos has declared that the resignation of an employee from Atlas Copco Limited was wrongful and involuntary because it was carried out “under pressure.”
The presiding judge, Justice Maureen Esowe, ruled that the claimant, Mr. N. Olawale, resigned “as a result of pressure from Atlas’s managers and supervisors, amounting to a case of constructive discharge”—essentially, coercing an employee to quit or resign.
The judgment, delivered in July of this year, was published on the NIC’s official website on August 21, 2024.
What transpired during the proceedings
The claimant argued that his contract of employment was wrongfully terminated, as he was coerced into writing his resignation letter.
He insisted that the company’s Country Manager, “in the presence of other company officials, coerced him to resign his appointment or risk outright termination of his employment.”
His legal team urged the court to rule against the company’s decision and award him compensation of N102 million on the grounds that he was willing to stay with the company for 22 years.
In response, Atlas Copco Limited’s legal team argued that the ex-employee did not provide evidence to support his claims of resignation under duress, workplace discrimination, or harassment.
The company also urged the court to dismiss the case, including his compensation claims, adding that “the variable compensation applies only to the management staff of the company.”
What the Judge Said
Delivering the judgment, the court held that, based on the evidence presented, the claimant might not have resigned from his position without the communication he had with members of the company’s management.
Justice Esowe stated that “the conduct of Atlas Copco Limited, insisting on getting a decision on the options placed before Mr. Olawale regarding the modality of terminating his employment, clearly indicates a situation of constructive discharge” and declared it wrongful.
The court added that the company could have exercised its right to terminate Mr. Olawale’s employment on February 6, 2019, when he was placed on compulsory leave without prior notice.
However, the court dismissed Mr. Olawale’s claim for damages amounting to N102 million, ruling that there was no guarantee that the claimant would have remained in his position for 22 years or that the defendant’s business would continue successfully for that duration.
The Court highlighted that violation of the terms and conditions set out by the employer may result in a wrongful act for which the employer will be held liable in damages.
“But a wrongful act does not automatically translate to an illegal or unlawful or unconstitutional act, ” the Court held
It also held that “in a case for wrongful termination of employment without statutory flavour, the remedy open to the Claimant is a claim for damages, not reinstatement nor compensation to cover remuneration for years had the Claimant remained in the employment of the Defendant. “
The court subsequently awarded the sum of N1,000,000.00 and N300,000.00 in favour of the claimant.
More Insights: The National Industrial Court of Nigeria is a judicial institution established in 1976 to preside over issues relating to the Trade Disputes Act. It has jurisdiction over labour issues, civil matters, child trafficking, employment issues, entitlements/allowances, and sexual harassment in the workplace.
