Industrial Court Orders General Flavours, Compact Manifold to Pay Ex‑Employee N4.09m Over Salary Arrears and Damages
The National Industrial Court sitting in Abuja has ordered General Flavours Food and Compact Manifold Food to jointly and severally pay the sum of N4.09 million to a former staff member, Jessica, as outstanding salary arrears and aggravated damages, within 30 days.
Delivering judgment, Hon. Justice Rakiya Haastrup condemned the companies’ conduct as “reprehensible” for failing to honour their obligations after Jessica’s resignation, while later denying any employment relationship or indebtedness to her.
From the facts before the court, Jessica testified that her salaries were left unpaid for several months, later unilaterally reduced, and her entitlements withheld despite repeated demands, leading to her resignation in December 2017.
In defence, the companies argued that Jessica abandoned her job with Compact Manifold and was only engaged by General Flavours Food on a casual basis without a fixed salary. They further contended that the two firms were separate legal entities with no written contract establishing employment.
Counsel to Jessica, C. U. Onyeukwe Esq, countered that both companies shared management and operational control, and that Jessica was paid regular monthly salaries, thereby establishing an employment relationship under the Labour Act.
Justice Haastrup, in a well‑considered judgment, held that a contract of employment may be oral and found that evidence showed Jessica was absorbed by General Flavours Food and paid fixed monthly salaries. The court ruled that the defendants failed to disprove the evidence of unpaid salaries and that their refusal to settle her entitlements after resignation warranted aggravated damages.
However, the court dismissed Jessica’s claim for leave allowances between 2013 and 2016, citing her failure to prove she had approval to go on leave during those years.
