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BAD FAITH IS INCONSEQUENTIAL IN TERMINATION OF CONTRACT OF EMPLOYMENT

Dictum

Both in his pleadings and evidence the plaintiff concentrated so much on his allegations of bad faith, hatred, malice etc; but all these are of no consequence in determining whether or not his contract of employment was lawfully terminated by the defendant, considering that no reason was given for the termination.

– Ogundare, JSC. Chukwumah v. SPDC (1993)

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EMPLOYMENT GOVERNED BY STATUTE & THAT NOT GOVERNED BY STATUTE

In the case of BENIN ELECTRICITY DISTRIBUTION COMPANY PLC. v. ESEALUKA (2013) LPELR-20159(CA) where the court held that: “There is no doubt that there is a vast difference between an employment with statutory flavor in which case the terms of employment of that staff is governed by the statute creating that organization and any infraction of the terms of employment and discipline as guaranteed by the statute is bound to be declared null and void. That is illegal dismissal, where it occurs. In such situations the employee is restored to the position as if no disciplinary measures had been taken at all. See Dr. Taiwo Oloruntoba-Oju & Ors. v. Prof. Shuaib O. Abdul-Raheem & Ors. (2009) 13 NWLR Pt.1157 Pg.83; Bamgboye v. University of Ilorin (1999) 10 NWLR Pt.622 Pg.290. However, where the relationship is not governed by statute and there is infraction of the terms of employment and dismissal by the employer such infraction is merely wrongful and not null and void. The employee can only claim damages for breach of contract and cannot claim arrears of salary and reinstatement. See Eze v. Spring Bank (2011) 12 SC Pt.1 Pg.173; Joseph Ifeta v. SPDC Nig. Ltd. (2006) 8 NWLR Pt.983 Pg.585.” Per OGUNWUMIJU, J.C.A. (Pp.32-33, Paras.B-F).

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APPOINTED TO A POST BY A TERM OF STATUTE

Obeta v. Okpe (1996) 9 NWLR (Pt. 473) page 401 at pages 433 – 434, it was held thus:- “The proposition of law that a person appointed to a post for a term by statute has right to serve out his statutory term of his appointment is correct. He cannot be removed from the office by any person during the period except for a misconduct or when the, master body or institution he is appointed to serve dies or ceases to exist.”

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WHEN IS AN EMPLOYMENT CLOTHED WITH STATUTORY FLAVOUR

In the case of Imoloame v West African Examination Council (1992) 9 NWLR (Pt.265) 303 at 317, Karibi- Whyte JSC dealing with when an employment is said to be clothed with statutory flavour said:- “…there is an employment with statutory flavour when the appointment and termination is governed by statutory provision. It is accepted that where the contract of service is governed by provision of statute or where the conditions of service are contained in regulations, derived from statutory provisions, they invest the employee with a legal status higher than the ordinary one of master and servant. They accordingly enjoy statutory flavour”. (See also Idoniboye-Obu v NNPC (2003) FWLR (Pt.146) 959 at 1004; Shitta-Bey v Federal Civil Service Commission (1981) 1 SC 40; Olaniyan v University of Lagos (2001) FWLR (Pt.56) 808; (1985) 2 NWLR (Pt.9) 599; Eperokun v University of Lagos (1986) 4 NWLR (Pt.24) 162; Professor Dupe Olatunbosun v Niser (supra); Dr. Bamgboye v University of Ilorin (1999) 10 NWLR (Pt.622) 290)

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STATUTORY FLAVOUR EMPLOYMENT

An employment with statutory flavour is one governed by statute wherein the procedures for employment and dismissal of an employee are clearly spelt out. In such a situation, the employment cannot be terminated other than in the way and manner prescribed by that statute and any other manner of termination inconsistent with the statute is null and void and of no effect. The contract is determinable not by the parties, but only by statutory preconditions governing its determination.

– Muhammad JCA. Osumah v. EBS (2004)

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WORKER AND EMPLOYEE UNDER THE LABOUR ACT

As can be seen, the definition of worker under section 91(1) is restrictive given the persons exempted in terms of paragraphs (a) to (f) of the definition. The point is that section 91(1) defines a worker only for the purposes of the Labour Act; as such, not all employees are workers for purposes of the Labour Act. The category of persons under paragraphs (a) to (f) of the definition of a worker may thus be employees but not workers for purposes of the Labour Act. Section 91(1) of the Labour Act defines a worker by reference to an employer i.e. as one who entered into or works under a contract with an employer. So, who is an employer? The same section 91(1) defines an “employer” to mean “any person who has entered into a contract of employment to employ any other person as a worker either for himself or for the service of any other person, and includes the agent, manager or factor of the first-mentioned person and the personal representatives of a deceased employer”. The common denominator in the definition of a worker and an employer is the contract of employment. A “contract of employment” is thus defined by same section 91(1) to mean “any agreement, whether oral or written, express or implied, whereby one person agrees to employ another as a worker and that other personagrees to serve the employer as a worker”.

— B.B. Kanyip, J. Olatunji v UBER (2018) – NICN/LA/546/2017

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ESTOPPED WHEN SALARY PAYMENT IS IN CONTINUANCE

Ondo State University v. Folayan (1994) 7 NWLR (Pt. 667) page 34 at page 61, the university had appointed Dr. Folayan for a probationary period of three years. Without extending the tenure of Dr. Folayan, they continued to use his services and pay him his salaries for three years. The Supreme Court held that the university was estopped from contending that the employment had come to an end at the end of the three years probationary period.

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