The National Industrial Court’s Ruling in Favor of Kunle Adeboye
The National Industrial Court of Nigeria recently delivered a significant judgment in favor of Kunle Adeboye, former Managing Director/Chief Executive Officer of Radix Pension Managers Limited. The court ordered Radix Pension Managers Limited to pay Adeboye a substantial sum of N57.12 million and $21,000, representing outstanding salaries, allowances, and other entitlements owed to him following his resignation from the company. This decision, handed down by Justice R. Gwandu at the court’s Ikoyi, Lagos division, marks the culmination of a legal battle initiated by Adeboye in October 2021.
Adeboye’s claim initially sought N86.26 million in unpaid salaries, allowances, and severance benefits. His tenure as Managing Director/CEO of Radix PFA commenced on January 3, 2018, following his appointment on December 29, 2017. After serving for three years, he voluntarily resigned on March 12, 2021. The court meticulously examined the evidence presented and determined that Adeboye was indeed entitled to a substantial portion of his claimed amount.
Justice Gwandu’s judgment detailed the specific components of the awarded sum, addressing various aspects of Adeboye’s compensation package. The court granted N15 million for a status car, prorated over three years, acknowledging the company’s obligation to provide this benefit. A severance pay of N25.81 million was also awarded, recognizing Adeboye’s entitlement upon his resignation. The judgment included provisions for two economy class tickets to the UK for three years, valued at N3 million, and a vacation estacode of $21,000, acknowledging the international travel associated with his role. Additionally, the court recognized Adeboye’s entitlement to club membership, awarding N813,543 for this benefit.
The judgment further addressed outstanding medical expenses, including N200,599.89 for 2017 and N618,249 for 2020, along with leave allowance of N412,166.60 for 2020. A passage allowance of N618,249 for 2020 was also granted. The court meticulously reviewed Adeboye’s claims for various allowances and outstanding payments, ensuring a comprehensive assessment of his entitlements.
Beyond the specified amounts, the court granted several other claims put forth by Adeboye. These included a quarterly allowance of N1 million for the first quarter of 2021, reflecting the ongoing compensation structure. Recognizing the standard practice of providing notice before resignation, the court awarded three months’ base salary in lieu of notice, amounting to N1,030,416.51. Furthermore, the judgment addressed previously deducted salary payments for the period of April to August 2020, totaling N2,734,392.80, ordering their reimbursement to Adeboye.
The court also acknowledged Adeboye’s accrued but unused annual vacation time, granting him N5,462,784.63 as compensation. Finally, a prorated allowance for three months of 2021, amounting to N417,812.72, was included in the judgment. This meticulous breakdown of the awarded sum reflects the court’s commitment to ensuring fair and accurate compensation for Adeboye.
While Justice Gwandu awarded the specified amounts to Adeboye, the judgment also included provisions for interest in case of delayed payment. The court stipulated that if Radix Pension Managers Limited failed to settle the judgment sum within one month of the judgment date, the amount would accrue interest at a rate of 10% per annum until full payment was made. This provision aims to incentivize timely compliance with the court’s order and protect Adeboye’s financial interests. However, the court declined to award any additional monies as costs for filing the suit, focusing solely on the outstanding compensation owed to Adeboye.
This judgment serves as a notable example of the National Industrial Court’s role in upholding employment rights and ensuring fair compensation for employees. By meticulously examining the claims presented and providing a detailed breakdown of the awarded sum, the court demonstrated its commitment to delivering just and equitable outcomes in employment disputes. The decision also highlights the importance of clear employment contracts and the legal recourse available to employees when their entitlements are not met. The court’s firm stance on timely payment, with the inclusion of interest for delayed settlement, further underscores its dedication to enforcing its judgments and protecting employees’ financial well-being. This case may serve as a precedent for future disputes involving unpaid salaries, allowances, and other benefits, emphasizing the importance of employers adhering to contractual obligations and respecting employee rights.
