The Abuja Division of the National Industrial Court has ordered General Flavours Food and Compact Manifold Food to pay N4.09 million to a former employee, Jessica, for unpaid salary arrears and aggravated damages.
Rakiya Haastrup, the presiding judge, ruled that both companies must settle the debt within 30 days.
The judge described the firms’ refusal to honour their financial commitments after the claimant’s resignation as “reprehensible,†especially following their later claims that she was never an employee.
Background of the Case
The claimant, Jessica, testified that her salaries remained unpaid for several months during her employment.
She further alleged that her pay was unilaterally reduced and her final entitlements were ignored despite repeated demands, leading to her resignation in December 2017.
In their defence, the companies argued that they were separate legal entities and that no written contract existed between Jessica and General Flavours Food. They claimed she had abandoned her role at Compact Manifold and was only engaged by General Flavours Food as a casual worker without a fixed salary.
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However, Jessica’s counsel, C.U. Onyeukwe Esq., argued that the two companies shared management and operational control. He provided evidence that Jessica received regular monthly salaries, which established a clear employment relationship under the Labour Act.
The Court’s findings
In a detailed judgment, Justice Haastrup held that a contract of employment does not need to be in writing to be valid; it can be established orally or through conduct.
The evidence showed that Jessica had been absorbed by General Flavours Food and was paid a fixed monthly salary rather than irregular stipends.
The court found that the companies failed to disprove the evidence of unpaid salaries.
Their conduct in withholding entitlements after her resignation justified the award of aggravated damages.
Claims for leave allowances from 2013 to 2016 were dismissed, as the claimant could not prove she had formal approval to take leave during those years.
This ruling reinforces the principle that shared corporate management can lead to joint liability in labour disputes and that oral agreements carry significant weight in Nigerian employment law.
