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METAL PRODUCTS WORKERS' UNION OFNIGERIA AND ALZICO LIMITED (NATIONAL INDUSTRIAL COURT) H ON. JUSTICE (CHIEF) P.A. ATILADE PRESIDENT S.O. KOKU,ESQ. MEMBER ALHAJI Z.M. BELLO MEMBER SUIT NO: NIC/1 M/79 DATE OF JUDGMENT MONDAY, 29th OCTOBER, 1979 LABOUR LAW Entitlements - Deductions from payments to ex- employees on account of outstanding loan - How done - Whether employer entitled to make deductions. LABOUR LAW Salaries - Monthly rate of - Conversion of into dial equivalent - How done. ISSUES: 1. Whether the Respondent adopted the proper method in the conversion of monthly rate of salaries in this case. 2. Whether the Respondent was entitled to make deductions from the payments due t ex-employees on the basis of outstanding loans. FACTS: The Applicant filed a motion on notice dated 6th March, 1979 pursuant to sections 1l (l)(b) and 15(1) (b) (ii) of the Trade Disputes Decree, 1976 before the National Industrial Court praying the court to interpret its judgment delivered on the 29th November, 1978, as a determine the questions set out in the schedule to the application and marked Exhibit "A". The first question put was whether the Respondent was not wrong in calculating salaries of the workers on the basis of 28 working days in a month rather than 26 working days. Another question was the issue of car loans. The Applicant submitted that the question of car loans was not a matter referred to the court. On its part, the Respondent submitted that on the first question put to the court, the Respondent had paid each and every worker entitled under the judgment more than his due, e r" on the basis of 26 working days as contended by the Applicant. On the question of car loans, the Respondents submitted that it is a practice that when an employee leaves the service of his employer, the latter is entitled to deduct any amount properly due from one to the other. HELD (Dismissing the appellant s appeal): 1. On How con version of monthly rate into daily equivalent is done - The usual method of conversion of a monthly rate into its daily equivalent is to divide the monthly rate by the number 26, which represents the number of working days in a calendar month, after deducting Sundays therefrom. In this case, the court accepted the formula as reasonable and in conformity with the general industrial practice in the country. 2. On How deductions from payments to ex-employees on account of outstanding loans done - When employees leave the service of their employer, the latter is entitled to make deductions on account of outstanding balances on loans from the payments to be made to the employees, by reference to the outstanding book balances of the loans. The employer is also entitled to deduct, as in this case, the value of the car surrendered by the employee as assessed by the employer's dealers, where the employee takes no steps to protest against the assessment or arrange for his own assessment and sale at the assessed value. HON. JUSTICE (CHIEF) P.A. ATILADE - PRESIDENT DR O.I. ODUMOSU - MEMBER S.O. KOKU,ESQ. - MEMBER DR. E.C. IWUJI - MEMBER ALHAJI Z.M. BELLO - MEMBER