The National Industrial Court in Lagos has ruled that the resignation of Mr. N. Olawale from Atlas Copco Limited was wrongful and involuntary, deeming it a case of “constructive discharge” due to undue pressure from the company.
Justice Maureen Esowe delivered the judgment in July, which was published on the NIC’s official website on August 21, 2024. The court found that Olawale’s resignation was effectively coerced by the company’s managers and supervisors.
Olawale contended that his resignation was not voluntary but a result of coercion from Atlas Copco’s management, including the Country Manager, who allegedly pressured him to resign or face termination. His legal team argued that this amounted to wrongful termination and sought compensation of N102 million, asserting that Olawale was prepared to stay with the company for 22 years.
In contrast, Atlas Copco’s legal team denied the claims of duress, discrimination, or harassment and argued that the compensation sought was unjustified, particularly since “variable compensation” is typically reserved for management staff.
Justice Esowe determined that the resignation occurred under significant pressure, which constituted constructive discharge. The court noted that Atlas Copco Limited could have formally terminated Olawale’s employment on February 6, 2019, when he was placed on compulsory leave, but instead opted to exert pressure for his resignation.
However, the court did not award the requested N102 million in damages, reasoning that there was no certainty Olawale would have remained with the company for 22 years, nor that the company would have sustained its business success over that period. The court acknowledged that while the employer’s actions were wrongful, they did not equate to an illegal act.
The court ruled that in cases of wrongful termination without statutory backing, the appropriate remedy is damages rather than reinstatement or compensation for future earnings. Consequently, Olawale was awarded N1,000,000 in damages and an additional N300,000 for legal costs.
The National Industrial Court of Nigeria, established in 1976, handles matters related to the Trade Disputes Act, including labor issues, civil disputes, child trafficking, employment issues, and workplace sexual harassment.
