LEGAL PRINCIPLE: LABOUR LAW — Redundancy — Application of “Last In, First Out” Principle and Consideration of Relative Merit
PRINCIPLE STATEMENT
In redundancy, the principle of "last in, first out" shall be adopted in the discharge of the particular category of workers affected, subject to all factors of relative merit including skill, ability, and reliability.
RATIO DECIDENDI (SOURCE)
Per Ogwuegbu, JSC, in Agoma v. Guinness Nigeria Ltd (1995) NLC-1891992(SC) at p. 1; Para. D.
"the principle of 'last in. first out' shall be adopted in the discharge of the particular category of workers affected. Subject to all factors or relative merit including skill ability and reliability..."
EXPLANATION / SCOPE
The “last in, first out” (LIFO) principle applies to redundancy selections. However, relative merit (skill, ability, reliability) may override seniority. The principle applies to collective agreements and labour law. The employer must apply the principle fairly. The rule protects longer-serving employees but allows retention of more skilled workers. The court will examine whether the employer followed the agreed procedure. The principle promotes fairness in redundancy exercises.