Ex-Employee Loses N40m Severance Pay Suit Against Ecobank

The National Industrial Court, Calabar Division, has dismissed an entitlement claim suit filed by one Mr. Charles Udoh against his former Organization, Ecobank Nigeria.

The Presiding Judge, Justice M. N. Esowe, ruled that Udoh’s claims about severance pay lacked merit.

Udoh’s Counsel, Sam Onah Esq had argued “that at the end of his employment, the Bank paid gratuities, less deductions, into his account and blocked same bank account thereby denying him access to it, and further that his severance pay is yet to be paid,” as quoted on the website of the National Industrial Court.

Consequently, he prayed the court to grant his prayers, adding that his client was entitled to the sum of N40,000,000 as severance pay.

But, Ecobank’s defense counsel maintained that “the Udoh’s bank account was blocked because as at the time his employment was terminated, he failed to execute Exit Clearance that when he complied, his account was unblocked and has since started having access to his bank account.”

The counsel urged the judge to dismiss the suit, stressing that the severance pay sought by the claimant was “only paid to those who were involved in a mass exit exercise undertaken by the bank’s management.”

In her Judgment, Esowe held that Udoh could not back his argument with sufficient evidence.

“From the evidence adduced by the Claimant before this Honourable Court, there is nothing sufficient enough to satisfy the Court that Claimant is entitled to the sum of N40,000,000.00 (Forty Million Naira) as his severance pay if any.

“On the second instance, the Claimant did not lead any evidence or point the Court to any provision in the Handbook which can aid as a yardstick in calculating the severance pay of the Claimant,” she said, as quoted by the NIC on Friday.