LABOUR LAW ā Termination of Employment ā Notification of Pending Retirement Is Not a Bar to Termination
Principle Statement
The fact that an employee has been notified of his pending retirement does not, on its own, constitute a bar to subsequent termination of his employment before retirement by the employer in the absence of any specific provision to the contrary in the contract of service binding between the parties.
Ratio Decidendi (Source)
Per Mohammed, JSC, in Ibama v. Shell Petroleum Development Company of Nigeria Limited (2005) NLC-662000(SC) at p. 16; Paras EāF.
"In other words the fact that an employee has been notified of his pending retirement does not, on its own, constitute a bar to subsequent termination of his employment before retirement by the employer in the absence of any specific provision to the contrary in the contract of service binding between the parties."
Explanation / Scope
Notification of pending retirement does not prevent the employer from terminating employment earlier. The employer may still terminate if the contract permits. The principle applies to labour law. The rule protects employers’ contractual rights to terminate employment. Unless the contract expressly prohibits termination after retirement notice, the employer retains that power. The employee cannot rely solely on retirement notice as immunity from termination.
