Ex employees seek N267 million Redundancy Entitlement from Sterling Bank

By Chisom Edo

March 19, 2020

Former staffs of Sterling Bank Plc, on Thursday asked a National Industrial Court Lagos, to direct the bank to off set a N267 million redundancy entitlement it owes nine claimants.

The claimants are: Mr Wale Adedeji, Mr Jephter Amadi , Mr Saka Kilani, Mrs Oderinde Usoro, Mr Paul Leonard, and Mr Stephen Adegboye.

Other are; Mrs Eunice Abiodun, (also suing on behalf of her late husband Abiodun Poopola), Mr Dominic Isunuoya, and Mr Godwin Nwaokoro.

The sole defendant in the suit is Sterling Bank Plc.

In their suit marked NICN/LA/84/2012, claimants are demanding payment of the sum N267 million as redundancy emoluments due to them, following a consolidation of banks, and consequent termination of their appointments.

Claimants want the court to order the defendant to also pay them nine months salary, for a breach of payment of two months salary in lieu of notice.

The suit is pending before Justice Gwandu

In their statement of claim deposed to by Mr Paul Leaonard (fifth claimant), he averred that all claimant were former staffs of Indo Nigeria Bank Ltd, which merged with four others to form Sterling Bank Plc.

He said that following a consolidation policy by the Central Bank of Nigeria and the consequent merger of banks, there was an agreement between the management of Indo bank and the bank workers Union.

The Union is: Association of Senior Bank Insurance and Financial Institution as well as the National Union of Banks Insurance and Financial Institution Employee.

Claimant averred that the agreement was to the effect that no staff will be laid off duty as a result of the consolidation, but that all former employees of Indo, would be transferred to Sterling Bank.

He averred that under Redundancy in Article 5 of their agreement dated May 4, 2005 and June 1, 2005, provided that a redundant employee of less than five years shall be entitled to 12 weeks emolument for each completed year of service

He said that it was also provided that employees of less than 15 years shall be entitled to 14 weeks emoluments while above 15 will be entitled to 16 weeks emoluments.

Claimant averred that they were transfered to Sterling Bank on Jan 1, 2006 adding that on Feb. 2, 2006, they were issued the bank’s policy manual extract which stipulated that:

“Monetary policy for any redundant staff will be three months gross salary for number of accredited years or one year gross compensation whichever is higher”

According to claimants, they were shocked when on Sept. 29, 2006, they were now informed that their services with the defendant was no more required..

He said that this was barley nine months after they were transferred to Sterling Bank, and less than two years after Indo bank management had reached an agreement with the Union.

According to the cliamant, the defendant refused to pay their redundancy beenfits as stipulated, inspite of repeated demands.

He averted that the defendant however, paid another staff of one of the other merger banks the sum of N30million as compensation for loss of employment, while neglecting those of the claimants.

Claimants are therefore, claiming the sum of N267million as their redundancy entitlements as at Sept. 29, 2006, excluding sums paid as ex gratia package

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