LEGAL PRINCIPLE: LABOUR LAW — Remuneration — Retrospective Dismissal — Entitlement to Salary Up to Date of Actual Dismissal
PRINCIPLE STATEMENT
An employer who dismisses an employee with retrospective effect by reason of antecedent misconduct known to the employer all along cannot treat the contract as determined at an earlier date. The employee is entitled to salary up to the date of actual dismissal.
RATIO DECIDENDI (SOURCE)
Per Ogwuegbu, JSC, in Underwater Engineering Co. Ltd. v. Dubefon (1995) NLC-41992(SC) at pp. 8–9; Paras. D–A.
"Where an employer dismisses an employee with retrospective effect by reason of antecedent misconduct known to the employer all along and for which the employee had been tried and acquitted, the employer is not entitled to treat the contract of employment as having been determined at an earlier date. The employee is entitled to recover his salary up to the date of actual dismissal. The right to salary becomes due and vests at the end of each month of employment."
EXPLANATION / SCOPE
Retrospective dismissal is not effective. The employee is entitled to salary until actual dismissal. The principle applies to all employment contracts. The employer cannot backdate termination. The rule protects employees from arbitrary retrospective actions. The employee’s salary vests each month. The court will award salary up to the actual dismissal date.
