Industrial Court Declares Termination of Aderiye’s Employment by Reddington Hospital Wrongful, Awards ₦19.1m in Reliefs
Hon. Justice A. N. Ubaka of the National Industrial Court, Lagos Judicial Division, has declared the termination of Mr. Aderiye’s employment by Reddington Multi‑Specialist Hospital Ltd wrongful.
The Court ordered the hospital to pay the claimant within 30 days ₦4.2 million as redundancy pay, salary in lieu of notice, and accrued leave entitlements, ₦5.4 million representing outstanding pension contributions with statutory interest, ₦9 million as general damages (equivalent to nine months’ salary) and ₦500,000 as costs
Justice Ubaka held that an employer cannot unilaterally alter the terms of an existing contract, vary the character of employment, or withdraw statutory benefits without the employee’s clear and voluntary consent.
The court said administrative decisions cannot displace accrued employee rights and the hospital failed to comply with redundancy provisions in its employee handbook, which require consultation with affected staff and application of the last‑in, first‑out (LIFO) principle, or alternatively last‑in, last‑out (LILO) where merit and ability dictate.
Mr. Aderiye had worked with Reddington Hospital for several years when his status was changed to “contract staff” without consultation or agreement. Despite performing the same duties under the same supervision, the change stripped him of pension, leave, and other entitlements.
The hospital argued that the restructuring justified the variation and that Aderiye accepted the arrangement by continuing to work.
Counsel to the claimant, Folabi Kuti SAN, contended that no redundancy was declared, and even if assumed, Aderiye was the only staff affected, making the termination selective and discriminatory.
The Court found that the hospital’s justification for redundancy was invalid and inconsistent with international best practices, and Mr. Aderiye was entitled to pension contributions from 2018 to 2021 under the Pension Reform Act, and the method of termination was discriminatory, caused financial hardship, and amounted to a breach of labour standards.
Justice Ubaka concluded that the claimant was subjected to an arrangement that unjustly deprived him of accrued rights, warranting substantial damages.
