Court Orders Oando PLC to Pay N4.5 Million to Former Employee Over Wrongful Termination

Court Orders Oando PLC to Pay N4.5 Million to Former Employee Over Wrongful Termination

By Joseph Iyaji | Akahi News

Lagos, Nigeria — August 12, 2025

The National Industrial Court of Nigeria has delivered a significant ruling against Oando PLC, ordering the energy conglomerate to pay a total of N4.5 million to a former employee, Oladunni, who was wrongfully terminated after returning from an approved study leave. The judgment underscores the growing emphasis on workers’ rights and the legal obligations employers must uphold within Nigeria’s employment sector.

Background of the Case

Oladunni had been a dedicated employee at Oando PLC for over ten years when she applied for and was granted a one-year study leave to pursue further education. Upon completion of her studies, she made efforts to resume her duties by contacting the Human Resources department and various company executives for re-absorption into the workforce. However, despite these attempts, she was instead presented with a termination letter dated June 26, 2014, which she contended was unjust and lacked legal basis.

The claimant asserted that at no point did she breach any terms of her contract of employment. She further argued that Oando PLC’s action to terminate her contract without due process was not only unfair but also violated her right to an honourable exit after years of service.

Oando PLC’s Defence

In its defence, Oando PLC maintained that Oladunni failed to return to work promptly after the expiry of her study leave and did not apply formally for an extension. The company claimed that the terms of the leave were clear and that combining work with study was against company policy. Additionally, they argued that during the period of the study leave, Oladunni’s name was suspended from the payroll, which further complicated her status as an employee.

The company sought to justify the termination on grounds of alleged absenteeism and failure to comply with procedural requirements for extending leave.

Court Findings and Ruling

Presiding over the case, Honourable Justice Anthonia Ubaka found the arguments of Oando PLC unsubstantiated and ruled in favour of Oladunni. The court held that the company violated the terms of the employment contract by terminating the claimant without due notice or payment in lieu of notice.

Furthermore, the court recognised that Oladunni was entitled to gratuity and end-of-service benefits, which the company failed to pay. Consequently, Oando PLC was ordered to pay N1,205,186.41 as salary in lieu of three months’ notice, N2,772,701.47 as gratuity and end-of-service benefits, and N500,000 as cost of action. The total sum of approximately N4,477,887.88 was to be paid within 30 days of the judgment.

Implications for Labour Relations in Nigeria

This ruling sends a strong message to corporate organisations on the imperative to uphold workers’ rights and abide by contractual agreements. It highlights the judiciary’s readiness to protect employees from unlawful termination and to ensure they receive their rightful dues.

Legal analysts believe this judgment will encourage other workers who may have faced similar treatment to seek justice through the courts. It also serves as a caution to companies to carefully observe labour laws and internal policies, especially in managing employee leave and termination procedures.

A Win for Employee Rights

For Oladunni, the judgment represents not just financial restitution but also recognition of her rights and dignity as an employee. The decision emphasises the importance of fair treatment and respect for individuals who contribute to corporate growth over many years.

Oando PLC, a major player in Nigeria’s oil and gas sector, has yet to publicly respond to the court’s decision or indicate whether it plans to appeal. The outcome remains a critical precedent, reminding employers nationwide that adherence to lawful employment practices is non-negotiable.

As Nigeria continues to develop its labour framework, cases like this reinforce the balance between corporate governance and employee welfare, ensuring justice and fairness remain at the core of workplace relations.

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