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THREE CATEGORIES OF CONTRACT OF EMPLOYMENT

Dictum

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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REMOVING SERVANT REGULATED BY STATUTE, MUST GIVE ETERNAL JUSTICE

When the employing authority wants to remove its servant on grounds permitted by Statute, then as Lord Campbell, C. J., observed in Exparte Ramshay (1852) 18 Q.B. 173 at p.190 “the principles of eternal justice” will dictate that the servant cannot be lawfully dismissed without first telling him what is alleged against him and hearing his defence or explanation. Even where the servant had, aliunde, personal knowledge of the offence or reason for his removal that was held to be no substitute for hearing the officer’s explanation:- Reg v. Smith (1844) 5 Q.B. 614.

— A. Oputa, JSC. Olaniyan & Ors. v. University of Lagos (1985) – SC.53/1985

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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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WHERE OFFICER HOLDS HIS OFFICE “AT PLEASURE”

Where an officer holds his office “at pleasure,” like was the case in Brown v. Dagenham Urban District Council (1929) 1 K.B. 737 at p.742 he can be dismissed at will in complete disregard of any purported contract whether verbal, or written or even under seal, because such contract will be incompatible with his status and therefore destitute of legal value. Thus Servants of the Crown, civil as well as military, except in special cases, where it is otherwise provided by law, hold their office only during the pleasure of the Crown and can be dismissed at any time in spite of a contract for a period of Service:- Dunn v. Reginam (1896)1 Q.B. 116. In fact the employing authority will lack the power, the vires to “enter into a contract” inconsistent with the wording of the Statute which gave it power in the public interest to remove the Servant at its pleasure:- Nicholson v. Whitstable Urban District Council (1925) 89 J. P. Newsp 480 at p.508. An officer holding his office at pleasure has also no right to be heard before he is removed because there need not be anything against him to warrant his removal. If there is nothing against him, no reason need be given for there is nothing to defend since he held his office durante bene placito: See Reg v. Dartington School Governors (1844) 6 Q.B.682.

— A. Oputa, JSC. Olaniyan & Ors. v. University of Lagos (1985) – SC.53/1985

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SPECIFIC PERFORMANCE CANNOT BE AWARDED FOR WRONGFUL DISMISSAL

The common law principle is that no specific performance could be awarded for wrongful dismissal: accordingly, where a contract is purported to have been determined, even if wrongfully, it ceases to exist.

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

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NO STATUTORY FLAVOUR; WHERE CONTRACT DETERMINED BY AGREEMENT BETWEEN PARTIES

Fakuade v. O.A.U.T.H.C.M.B. (1993) 5 NWLR (Pt. 291) 47 where Karibi-Whyte JSC stated at page 63: “The character of an appointment and status of the employer in respect thereof is determined by the legal character and the contract of the employee. Hence where the contract of appointment is determinable by the agreement of the parties, simpliciter, there is no question of the contract having a statutory flavour. The fact that the other contracting party is the creation of a statute did not make any difference.”

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WRONGFUL TERMINATION OF EMPLOYMENT – WHAT WOULD HAVE EARNED IN THE PERIOD

In NITEL Plc. v. Akwa (2006) 2 NWLR (Pt.964)391 held that: “The law is settled, that where an employee’s appointment is terminated wrongfully or otherwise all he is entitled to is what he would have earned over the period of notice required to lawfully terminate this employment. The amount he is entitled to in his case is one month salary in lieu of notice and no more. See International Drilling Co. (Nig.) Ltd. v. Ajijala (1976) 2 SC 115; Akunforile v. Mobil (1969) NCLR 253; WNDC v. Abimbola (1966) 1 All NLR 159; Nigerian Produce Marketing Board v. Adewunmi (supra).” Per SANUSI, J.C.A (P. 42, paras. A-D).

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