- Introduction
In January 2025, news broke out, affecting the Nigerian Fintech space, as it was publicised that the former Group Chief People Officer [CPO], Rosemary Hewatt, at leading Fintech platform, Kuda Bank, had sued the institution alongside its CEO on the grounds of wrongful dismissal and gender discrimination in the workplace. The lawsuit, although instituted in the United Kingdom, raises salient issues critical to the labour law jurisprudence in Nigeria.
This research will analyse the ways in which a contract of employment can be terminated by an employer, the role of the law in protecting employees from gender discrimination, as well as the remedies available to employees where their employment has been wrongly terminated.
2.0 What are the ways in which an employment may be terminated?
According to the statement filed by the former employee, she argues that her termination was wrongful, as she was dismissed while on her way to Lagos. According to Hewat, when she enquired about why she had been dismissed, she was informed that it was due to the economic instability in Nigeria. She however believed that her dismissal was due to her stance against discrimination in Kuda – although the company denied this claim.
In understanding whether employment can be terminated by an employer, it is notable that there are several ways in which an employment contract can be terminated. They include:
2.1 Termination of Employment by Employer
Under common law, the employer has the right to hire and fire an employee. This means that an employer can hire an employee for a period and may fire them without any restriction – as it is an inherent right of an employer. This position has been highlighted by Nigerian courts in several cases, including Babatunde Ajayi v. Texaco Nig. Limited., where the court noted that:
In the ordinary case of master and servant as in the instant appeal, the master can terminate the contact with his servant at any time for good or for bad reasons or for none…
Thus, there need not be any notice to the employee about such termination, rather it is at the discretion of the employer. Additionally, this mostly applies where there is no contract of employment between the employer and employee – and usually in informal labour relations.
2.2 Termination in Lieu of Notice
Under section 11 of the Nigeria Labour Act, employers seeking to terminate the contract of their employees must provide notice in lieu of the termination. This means that where they plan to terminate the employment of an employee, there must be a notice period for such termination. However, where notice is not provided, then the employer must pay a salary in lieu of the termination provided. The need for notice is not limited to the employer alone but also extends to the employee – who must produce notice where they seek to terminate their employment with the company. It is posited that the aim of the notice is to ensure that the employer or employee can prepare for the end of the employment relationship. Additionally, the notice of termination by an employer must be clear and unambiguous, as held by the Courts in Honika Samwill (Nig) ltd v. Hoff, where the employer terminated the employee’s employment by stating that “I intend to dispense with your service at some time in the coming months”, was not clear.
Further, there have been several decisions by the Courts on the requirement of notice when terminating an employment contract. The court Chukwumah v. Shell BP, held that where a contract of employment notes that the mode of termination is by notice, any termination must be according to the notice period stated in the agreement. Hence, the appellant’s appeal was upheld by the Supreme Court, on the ground that the respondent had failed to follow the provisions of the employment letter. Also, in the case of Ologunde v. Carnaudmetal Box Toyo Glass Nigeria Plc), the court held that the termination of the employee was wrongfully dismissed and that the employee was entitled to the salary for the period in which the notice sufficed.
Hence, where a contract exists between the employer and employee clearly stating the mode of termination and identifying a notice period for termination, the parties must ensure they follow the terms stated in the contract.
2.3 Effluxion of Time
Lastly, under the employment relationship between the employer and employee, it may be terminated by effluxion of time. This means that the contract of employment has lapsed, thereby ending the employment. Thus, where an employee is hired for 6 months and the period lapses, the employment will be said to have ended, unless the parties seek to renew the terms.
3.0 The Role of Labour Law in Protecting against Gender Discrimination
The second ambit of Hewat’s argument was that she had been discriminated against by the CEO, citing several examples, including: being excluded from senior management meetings; being bypassed by the CEO, who opted to work with the members of her team directly; his berating of two female employees, etc. These examples therefore raise salient issues with regards to gender equality and the protection of employee rights in the workplace.
Generally, the right to not be discriminated against is a fundamental human right provided for under the 1999 constitution of Nigeria. This right has further extended into labour relations between employers and employees, ensuring that employees [ especially women] are not discriminated against based on the ground that they are women. This includes ensuring that there is equal pay, women are free from sexual harassment by their male colleagues, providing maternity leave for pregnant women, amongst others.
Section 54 of the Labour Act provides that where women are pregnant, they cannot be denied maternity leave where they apply for it. Additionally, they shall not be paid less than 50% of their salary during this period of maternity leave.
The courts have also ensured to protect the rights of women from being sexually harassed in the workplace. In Pastor (Mrs.) Abimbola Patricia Yakubu v Financial Reporting Council of Nigeria & Anor, the court held that the plaintiff’s right to dignity had been infringed on as she had been a victim of sexual harassment and sexual comments from one of the employees of the first defendant.
The position of the law, as well as the courts, ensure that women [and by extension, men] are not discriminated against in the workplace, and where this occurs, the employee may have recourse to remedies provided for under the law.
4.0 Remedies Available to Employees whose Contracts have been Wrongfully Terminated.
Considering the issues identified in the headings above, it is important to assess the remedies that may be available to employees whose employment have been wrongfully terminated.
Thus, where an employer wrongfully terminates the contract of an employee, the employee has the right to approach the courts to enforce their labour rights and claim remedies for wrongful termination. Amongst the remedies include:
- Damages for wrongful termination – which includes the salary for the period of notice, as well as any other bonuses that may have accrued; as well as
- The payment of damages to the employee.
This was the position of the court in Ologunde’s case, where the court noted that:
Where a contract of service is wrongfully terminated – the plaintiff will be entitled to damages for the wrongful termination of his employment, he is only entitled to the salary and other entitlements he would have earned over the period of notice
5.0 Conclusion
In conclusion, the Nigerian jurisprudence on labour law establishes the right that employers have the right to hire and fire employees. However, there are several laid down procedures to this end, as identified in this opinion. Additionally, gender discrimination is frowned upon under the labour law jurisprudence in Nigeria, as well as under human rights, ensuring employees are well protected.
