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SHOP AND DISTRIBUTIVE TRADE SENIOR STAFF ASSOCIATION AND MANAGEMENT OF ATLAS (NIGERIA) LIMITED (NATIONAL INDUSTRIAL COURT) HON. JUSTICE (CHIEF) P.A. ATILADE - PRESIDENT S.O. KOKU, ESQ. - MEMBER ALHAJI Z.M. BELLO - MEMBER SUIT NO: - NIC/17/86 DATE OF JUDGMENT - THURSDAY, 30TH JULY, 1987 LABOUR LAW - National Industrial Court - Awards or judgments of- Interpretation of - Jurisdiction of to questions relating thereto. LABOUR LAW - Trade dispute - Severance pay - Award on: Where based on graduated levels - How interpreted TRADE DISPUTE - Severance pay - Award on - Where based on graduated levels - How interpreted. ISSUE: What is the proper calculation of the severance pay ordered by the National Industrial Court in Paragraph 2 on page 16 of its judgment in Suit No. NIC/2/85 delivered on 31st January, 1986. FACTS: The National Industrial Court in its judgment in this suit, delivered on 31st January, 1986 had ordered that severance pay be made to eleven dismissed workers thus: “1 to 5 years service - one week's pay for every completed year of service. Over 5 years to 10 years service - two weeks’ pay for every completed year of service, over ten years of service - three weeks' pay for every completed year of service”. In calculating the severance pay, the parties adopted two different methods: one is the line-by-line calculation, which was adopted by the Respondent; and a straight-line calculation, which was adopted by the Applicant. As a result of the difference in the two calculations, the Applicant applied to the Court for the correct interpretation of the last paragraph of page 17 of the said judgment. HELD: (Interpreting the court’s judgment in favour of the Applicant): 1. On Jurisdiction of National Industrial court to determine questions relating to interpretation of awards or judgments - The National Industrial Court has absolute jurisdiction under the provisions of sections 11(1) and (2), and 15 of the Trade Disputes Act, 1976 to determine questions relating to interpretation of awards or judgments. 2. On Interpretation of award on severance pay based on graduated levels- In this case, where the award on severance pay provides that 1 to 5 years service should received one week's pay for every completed year of service; over 5 years to 10 years service to receive two weeks' pay for every completed year of service, and over 10 years service to receive three weeks' pay for every completed year of service, - it is patently clear that the intention of the Court was to provide severance pay at graduated levels based principally on the length of service of the workers affected. In other words, longer serving workers were to enjoy higher severance compensation than other who had shorter length of service. H ON. JUSTICE (CHIEF) P.A. ATILADE PRESIDENT, S.O. KOKU,ESQ. MEMBER, ALHAJI Z.M. BELLO MEMBER