LEGAL PRINCIPLE: LABOUR LAW — Employment Contract — Ordinary Contract of Service — Remedy for Wrongful Termination
PRINCIPLE STATEMENT
In ordinary contracts of service (not governed by statute), wrongful termination gives rise to a claim for damages, not a declaration that the dismissal is null and void; the remedy is damages, not reinstatement.
RATIO DECIDENDI (SOURCE)
Per Kutigi, JSC (adopting the reasoning of the lead judgment), in Isievwore v. NEPA (2002) NLC-601998(SC) at p. 9; Paras C–E.
"Employment with statutory backing must be terminated in the way and manner prescribed by the relevant statute and any other manner of termination inconsistent therewith is null and void and of no effect. But in other cases governed by only agreement of the parties and not by statute, removal by way of termination of appointment or dismissal will be in the form agreed to. Any other form connotes only wrongful termination or dismissal but not to declare such dismissal null and void. The only remedy is a claim for damages for that wrongful dismissal ... for his wrongful act, he is only liable in damages and nothing more."
EXPLANATION / SCOPE
For ordinary contracts of service (master-servant relationship), the remedy for wrongful termination is damages, not a declaration of nullity. The court will not order reinstatement. The principle applies where employment is not governed by statute. The employee cannot seek a declaration that the dismissal is void. The rule is based on the common law. The employer is entitled to terminate but may be liable in damages. The court will not compel specific performance of a personal service contract. The exception is for statutory employment where the statute prescribes the mode of termination. The principle promotes finality in employment relationships.