WHETHER REASON(S) FOR TERMINATION OF EMPLOYMENT NEED BE STATED IN THE LETTER OF TERMINATION GIVEN TO EMPLOYEE?

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WHETHER REASON(S) FOR TERMINATION OF EMPLOYMENT NEED BE STATED IN THE LETTER OF TERMINATION GIVEN TO EMPLOYEE? 

by Branham Chima. 
Subscribe: https://branhamchima.substack.com/embed 

✓ DEFINITION(S): 
Termination of employment: refers to the end of the employer-employee relationship. It occurs when an employer decides to end an employee’s contract. 

Letter of termination: also known as a termination letter or a letter of dismissal, is a written document that formally communicates the decision to end an employee’s employment. 

Employee: is an individual who works for an employer under a contract of employment. 

✓ ANSWER: 
Yes. The reasons for the termination should be stated in the letter of termination, if not, liability may arise thereof. 

Hear the court in the National Industrial Court case of Ejiro Peter Amratefa v. Access Bank (NICN/ABJ/106/2022, November 2, 2023) per O.A. Obaseki-Osaghae J. holding thus, while finding the Defendant liable for wrongful termination of employment: ‘The ILO Termination of Employment Convention 1982 (No 158) is yet to be ratified by Nigeria. It is however evidence of international labour standards, and international best practice in termination of employment which this Court is obligated to apply; and its recommendations that an employee is entitled to be informed of the reason for the termination of his employment. Section 7(6) of the National Industrial Court Act 2006 empowers the Court to have due regard to good or international best practices in labour or industrial relations, and what amounts to good or international best practices in labour is a question of fact. Section 254C of the 1999 Constitution (as amended) has empowered this Court to determine whether the Claimant was terminated for a valid reason or for no reason. It is not globally acceptable in industrial relations and practice to terminate the employee’s employment without adducing any reason for doing so, see Petroleum and Natural Gas Senior Staff Association of Nigeria v Schlumberger Anadrill Nig Ltd [2008] 11 NLLR (Pt 29) 164, Aloysius v Diamond Bank Plc [2015] 58 NLLR 52, Uzo Ejekwumadu v Blue Arrow TSW Ltd (unreported) Suit No: NICN/LA/242/2016 judgement delivered March 18, 2021. It is contrary to international labour standards and international best practices for an employer to terminate the employment of its employee without any reason or justifiable reason that is connected with the performance of the employee’s work. This is also contrary to the International Labour Organisation (ILO) decent work agenda with the four strategic objectives of the promotion of rights at work, employment, social protection, and social dialogue.’ 

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