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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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EMPLOYMENT: THERE WILL BE AN ACTION FOR REINSTATEMENT WHERE THERE IS UNILATERAL REPUDIATION

In Vitarelli v. Seaton 359 US. 335, the Supreme Court of the United States of America granted a declaration in the case of a civil servant even in a case involving State Security, because the proper procedure was not adopted. An analysis of the decided cases leads to the conclusions that an action for reinstatement is only possible where there is a unilateral repudiation of the contract of service by the Master (the Employer) which has not been accepted by the (employee) Servant. See Denmark Productions Ltd. v. Bascobol Productions Ltd. (1961) 3 All E.R. 583. In that situation the contract is still in existence having not been discharged by the acceptance of the repudiation. It is therefore not the same as where the contract has been discharged and the dismissed employee is entitled only to damages.

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

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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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NOT ALL EMPLOYMENT BY STATUTORY BODY HAS STATUTORY FLAVOUR

The fact that an organisation or authority which is an employer is a statutory body does not mean that the conditions of service of its employees must be of a special character, ruling out the incidence of a mere master and servant relationship. Where the contract between the parties is clear and unequivocal, the court must, in construing the relationship of the parties, confine itself to the terms and contract of service between the parties.

– Muhammad JCA. Osumah v. EBS (2004)

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EMPLOYMENT OF STATUTORY FLAVOUR – CREATION OF STATUTE

It is settled law that the character of an appointment is determined by the legal character of the contract of employment. Where the contract of appointment is determinable by the agreement of the parties, there is no question of the contract having a statutory flavour. It is immaterial that the other contracting party is a creation of a statute.

– Muhammad JCA. Osumah v. EBS (2004)

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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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THE EMPLOYEE HAS BURDEN TO PLACE TERMS AND CONDITIONS THAT WAS BREACHED BY EMPLOYER

The law is settled that in the determination of employment rights, it is the employee who complains that his employment contract has been breached that has the burden to place before the Court the terms and conditions of his employment that provide for his rights and obligations, see Okoebor v Police Council [2003] 12 NWLR (Pt 834) 444, Okomu Oil Palm Co v Iserhienrhien [2001] 6 NWLR (Pt. 710) 660 at 673, Idoniboye-Obe v. NNPC [2003] 2 NWLR (Pt. 805) 589 at 630. In furtherance of this the Claimant has placed before the Court his offer of employment (exhibit C1), staff handbook (exhibit C2), letter of promotion (exhibit C3), suspension letter (exhibit C7) letter of invitation to disciplinary committee (exhibit C8), letter of termination (exhibit C9), statement of account (exhibit C10), CBN operational guidelines for delisting (exhibit C11), and other service documents.

— O.A. Obaseki-Osaghae, J. Ejiro Peter Amratefa v. Access Bank (NICN/ABJ/106/2022, November 2, 2023)

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