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Court orders bank to pay N1.086bn to 1,742 ex-employees over Unpaid gratuities

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National Industrial Court sitting in Lagos, has ordered Oceanic Bank to pay N1,086,611,589.11 to 1,742 ex-staff, who were denied thier entitlements by the banks.

Justice R. Gwandu gave the order while delivering judgment in suit Number NIC/LA /231/2012 filed by 1,742 ex-employees of defunct Oceanic Bank, which merged with Ecobank Bank Limited sometimes in 2012

In the representative suits filed by Mr. Nwabu Okoye, counsel to Mr Babajide Bayode, Yemisi Adesote, Adeboyejo Oladimeji, Seun Aina, Yusuf Kadiri, Segun Alasan, Adetayo Familugba and Lolade Olaribigbe, who sued for themselves and as representatives of 1,733 other ex-employees of Oceanic Bank, now Ecobank Nigeria Limited, the plaintiffs sought the following orders from the court:

“An order directing that they be paid the outstanding sum of N1,146,470,393,.62 being the sum total of thier savings in the Staff Savings Investment Trust Fund, SSITF, scheme contributed by 1742 ex-employees of Oceanic Bank made up of those transfered to Ecobank upon merger of the two banks through the merger of February 15, 2012, and those whose employment were determined before or upon the said merger which remain unpaid till date.”

The claimants in thier statement of claim said the amount is outstanding as their contributions to the SSITF scheme which the defendant has refused to pay till date stands at N926,901,065.60.
Claimants also asked the court for an order directing the bank to pay the sum of N159,710,523.51 being the total sum due as gratuities to 48 of the claimants and another sum of N59, 858,804,.51 being the short payments of severance or redundancy paid by the defendant to 74 of them.
However, the bank through its lawyer, S. Arubike filed a statement of defense to the suit as well as counter- claim.

The bank claim demanded for the sum of N967,529,765.38 being the excess of severance and or redundance benefits paid to the ex- staff of Oceanic Bank, that is, the claimants at 24 percent interest from October 30, 2014, until any judgement is delivered in it’s favour and interest of 10 per cent untill the judgment sum is fully liquidated.

Justice Gwandu in his judgment held that upon the consummation of the merger, Ecobank has fully acquired all the assets and liabilities of Oceanic Bank and cannot repudiate or push some of the liabilities on its employees, moreso, when it was the bank that was in control of the SSITF scheme.

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