The apex bank is being sued by former employees of the Central Bank of Nigeria (CBN) who were let go in a mass layoff last year.
The workers claimed that the CBN had breached their contractual rights, Nigerian labour laws, and corporate regulations in a court filing obtained by TheCable on Monday.
A class action complaint was brought before the National Industrial Court of Nigeria (NICN), Abuja, by the plaintiffs, who were represented by Stephen Gana and thirty-two other people.
They claimed that their termination procedure, which was carried out through letters titled “Reorganizational and Human Capital Restructuring” and dated April 5, 2024, was in violation of Section 36 of the Nigerian Constitution as well as the CBN human resources policies and procedures manual (HRPPM).
According to the claims, the procedure did not include the required legal consultation and impartial hearing.
Whether the claimants were deprived of their constitutional right to a fair hearing both before and after their appointments were terminated was one of the issues highlighted by the originating summons, which was filed on July 4, 2024, in accordance with the NICN Civil Procedure Rules 2017.
Additionally, the workers argued that the termination letters, which were based on “restructuring, were unlawful, capricious, and unconstitutional.
The claimants are requesting a judicial decision declaring their terminations to be “void and useless” and insisting that they remain employed by the national bank.
They also requested a restraining order to stop the CBN from terminating them without following the correct processes, paying them their salary and benefits from the day of termination, and immediately rehiring them.
The HRPPM’s Article 16.4.1, which requires consultation with the joint consultative council (JCC) and adherence to fair procedures prior to employment actions negatively impacting employees, is cited in the court submission.
The claimants claimed that because they were only given three days to leave their posts and turn over government property, the clause was blatantly ignored.
In addition, they are requesting N500 million to cover the expense of the lawsuit and N30 billion in general damages for psychological suffering, hardship, and reputational harm brought on by the dismissal.
A cordial resolution is encouraged by the court.
The court urged a peaceful settlement of the case in a different document dated November 20, 2024.
Inam Wilson and seven other attorneys defended the CBN (the defendant), whereas Gana and their counsel represented the claimants.
The industrial court’s sitting judge, Obaseki Osaghae, acknowledged in the document the defendant’s preliminary objection, which was submitted on November 4, 2024, contesting the admissibility of the claim.
Their attorney attested to the fact that the claimants’ counter-affidavit had been served.
Under Section 20 of the National Industrial Court Act (NICA) of 2006, the court responded by urging the parties to consider reaching a settlement.
“I think the parties should try to settle this disagreement amicably,” Osaghae stated.
As a result, the case was postponed until January 29 in order to hear the preliminary objection or to assess the status of any settlement negotiations.
HISTORY
About a thousand employees had their appointments terminated by CBN in 2024. According to reports, between March and May of the same year, the dismissals were made in four batches.
Some employees reported their gratuities were completely deducted to pay off outstanding loans, while others alleged they received severance compensation as little as N5,000.
Officially, the layoff was ascribed to a “reorganisation” and “human capital restructuring,” but the impacted employees claimed that the procedure went against the CBN Act, which requires board permission for major hiring decisions.
The apex bank declared on December 4 of last year that its early leave package (EEP) was completely voluntary and would not have any adverse effects on qualified employees.
Following rumors that 1,000 employees had been let off from the apex bank, the CBN released its announcement.
The House of Representatives responded to the development by requesting that the CBN halt the 1,000 employees’ “planned” retirement.
An ad hoc committee had also been established by the lower chamber to look into the “process and legality” of the exercise.
The CBN governor, Olayemi Cardoso, addressed the issue on January 3 and stated that the 1,000 employees who departed the bank were not compelled to do so.
Cardoso added that the restructuring and reorganization, together with the early exit program, were intended to maximize the bank’s efficiency.
