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CONTRACT OF SERVICE COMES TO AN END WHERE EMPLOYEE ACCEPTS REPUDIATION

Dictum

The contract of service comes to an end after the unilateral repudiation only if the employee accepts the repudiation expressly or by implication. – See Gunton v. Richmond-upon-Thames London Borough Council (1981) AC. at p. 464 and Decro-Wall International S.A. v. Practitioners in Marketing Ltd. (1971) 1 WLR. at pp. 369-370 per Salmon L. J.

— A.G. Karibe-Whyte, JSC. Olaniyan & Ors. v. University of Lagos (1985) – SC.53/1985

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TWO INGREDIENTS TO ESTABLISH STATUTORY FLAVOUR CONTRACT

However, it should not be mistaken that once a company, corporation or government agency is set up by statute, all the employees thereof ipso facto became children of statute to the extent that their individual agreement of service with the employer automatically becomes contract with statutory flavour. Two of the vital ingredients that must coexist before a contract of employment may be said to import statutory flavour includes the following:- 1. The employer must be a body set up by statute. 2. The stabilizing statute must make express provision regulating the employment of the staff of the category of the employee concerned especially in matters of discipline. See in this regard Idoniboye-Obu v NNPC (2003) FWLR (Pt.146) 959 at 992; Salami v New Nigerian Newspaper Ltd (1999) 13 NWLR (Pt. 634) pg 315; CBN v Archibong (2001) FWLR (Pt.58) 1032 at 1056; Udemah v Nigerian Civil Corporation (1991) 13 NWLR (Pt.180) 477; Fakuade v O.A.U Complex Management Board (1993) 5 NWLR (Pt.291) 47.

— M.U. Peter-Odili, JSC. Kwara Judicial Commission v Tolani (2019) – SC.63/2010

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AN EMPLOYMENT WHERE NATURAL JUSTICE IS BEEN EXCLUDED IS PURE MASTER AND SERVANT

Lord Wilberforce in the case of Malloch v Aberdeen Corporation (1971) 2 All ER 1278 at 1294 said: “One may accept that if there are relationships in which all the requirements of the observance of rules of natural justice are excluded (and I do not wish to assume that this is inevitably so), these must be confined to what has been called “pure master and servant” case, which I take to mean cases in which there is no element of public employment.or service, no support by statute, nothing in the nature of an office or a status which is capable of protection. If any of these elements exist, then in my opinion, whatever the terminology used, and even though in some interpartes aspect the relationship may be called that of master and servant, there may be essential procedural requirements to be observed and failure to observe them may result in a dismissal being declared to be void.”

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REPUDIATION BY ONE PARTY DOES NOT TERMINATE THE CONTRACT EXCEPT WHERE ACCEPTED

In Heyman v. Darwins Ltd. (1949) AC. 356, 361 Viscount Simon L.C. said, “But repudiation by one party standing alone does not terminate the contract. It takes two to end it, by repudiation on the one side, and acceptance of the repudiation on the other.” The proposition is founded on the elementary principles of the formation and discharge of contractual obligations. Where there is a unilateral repudiation of a contract, this is treated as an officer by the guilty part to the innocent party of the termination of the contract. It is the acceptance of the officer by the innocent party which acts as a discharge of the contract. – See Hochster H v. De La Tour (1853) 2 F& B. 678; Johnstone v. Milling (1886) 16 QBD 460. It is then open to the innocent party to sue only for damages since by his acceptance of the repudiation the contract comes to an end. Hence where the innocent party refuses to accept the repudiation the contract remains in existence.

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WHERE TERMINATION IS WRONGFUL; ONLY REMEDY AVAILABLE IS SALARY IN LIEU

While I have earlier reckoned that the termination of the Claimant’s employment was not in itself wrongful, I must add for the sake of the said relief 7 that even where a termination is wrongful in a master servant employment, the remedy available is to the extent of what the employee would have earned as salary in lieu of notice.

— Z.M. Bashir, J. Gbaraka v Zenith Securities & Anor. (2020) – NICN/PHC/45/2018

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COURT WILL NOT IMPOSE EMPLOYEE ON EMPLOYER

Ordinarily and consistent with the common law principle, the Court will not impose an employee on an employer.

– Karibe-Whyte, JSC. Chukwumah v. SPDC (1993)

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THREE CATEGORIES OF CONTRACT OF EMPLOYMENT

In C.B.N v Igwillo (2007) 4-5 SC 154 @ 172 lines 25-40 to be as follows: “The law is settled that there are now roughly three categories of contracts of employment viz: (a) those regarded as purely master and servant; those where a servant is said to hold office at the pleasure of the employer; and those where the employment is regulated or governed by statute, often referred to as having statutory flavour; See: Olaniyan Vs University of Lagos (1985) 2 NWLR (Pt.9) 599. An employment is said to have statutory flavour when the employment is protected by statute or laid down regulations made to govern the procedure for employment and discipline of an employee. Any other employment outside that category is governed by the terms under which the parties agree to be master and servant.”

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