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1. OGUN STATE HOTEL, ABEOKUTA 2. MINISTRY OF COMMERCE AND INDUSTRY, ABEOKUTA AND NATIONAL UNION OF HOTELS AND PERSONAL SERVICES WORKERS (NATIONAL INDUSTRIAL COURT) HON. JUSTICE (CHIEF) P. A. ATILADE - PRESENT ALHAJI Z.M. BELLO - MEMBER M.A. BORISADE, ESQ. - MEMBER B.N. OBUA, ESQ. - MEMBER SUIT NO: - NIC/10/89 DATE OF JUDGMENT - 19TH JULY, 1990 LABOUR LAW - Company - Purchaser of - Need for to send individual letters of termination to workers and pay them terminal benefits. LABOUR LAW - Trade dispute - Victimization or maltreatment of workers - Treatment of workers as temporary workers - Invitation to workers to re-apply for their positions -Whether amount to victimization or maltreatment. LABOUR LAW - Transfer of workers' from one employer to another – Conditions precedent thereto -Section 10, Labour Decree, 1974. TRADE DISPUTE - Victimization or maltreatment of workers -Treatment of workers as temporary workers - Invitation to workers to re-apply for their positions - Whether amount to victimization or maltreatment. ISSUES: 1. Whether the services of the workers in Ogun State Hotels Limited were transferred to the Ogun State Government, the present owners of the Hotel in compliance with the provisions of section 10 of the Labour Decree. 1974. 2. Whether the workers of the old company are entitled to be paid any terminal benefits and if so, who is to pay these benefits. 3. Whether there was victimization and maltreatment of the workers. FACTS: Prior to 31st March, 1988 there was a company known as Ogun State Hotels Company Limited, which owned Ogun State Government Hotels. The shareholders of the company were State Government, Nigerian Industrial Bank Limited and International Generic Limited. On 31st March, 1988, the Hotel was sold to the Ogun State Government. The new owner, Ogun State Government, issued an order inviting the former staff of Ogun State Hotels Company Limited to re-apply. The circular letter also showed that Ogun State Hotels Company Limited did not transfer the contract of the workers of Ogun State Hotels, and that the new owners of the hotel regarded the contract of the workers as having terminated with effect from 31st March, 1988, without any consideration whatsoever of payment of compensation for the past services of the staff up to 31st March, 1988. The affected workers were aggrieved and the Respondent union declared a trade dispute. The dispute was referred to the Industrial Arbitration Panel, which awarded that all the who were in the staff service of Ogun State Hotel, Abeokuta on 31st March, 1988, should be regarded as having their contract of employment transferred to the new proprietors of Ogun State Hotel, Abeokuta effective from that date. The Appellants were dissatisfied with the IAP award and appealed to the National Industrial Court. HELD: (Allowing the appeal): 1. On Conditions precedent to valid transfer of workers’ from one employer to another- By virtue of the provisions of section 10 of the Labour Decree 1974, the transfer of any contract of one employer to another shall be subject to the consent of the worker and the endorsement of the transfer upon the contract by an authorized labour officer. Thus, there are two legs upon which a valid transfer could be ascertained, firstly: the consent of the workers; the endorsement of the authorized Labour Officer on the contract of service. In the instant case, there was no evidence on record that the workers were specifically asked whether they would consent to a transfer. Secondly, there was no endorsement of an authorized labour officer on the workers' contracts of service. Therefore, there was no valid transfer of the services of the workers from Ogun State Hotels Limited, the old employers, to the State Government, which is the new employer. 2. On Need for a purchaser of a company to give individual letters of termination to workers and pay them terminal benefits - Where a purchaser buys a company, the proper thing that should be done is to send individual letters of termination to the affected workers, and to pay them their terminal benefits. In the instant case, the court ordered the Ogun State Government, through the Ministry of Commerce and Industries, being the successors in title of the defunct Ogun State Hotels Company Limited to pay the terminal benefits c 1 aimed by the junior workers. 3. On Whether treatment of workers as temporary workers or invitation to workers to re-apply for employment amount to victimization or maltreatment - The mere fact that workers are treated as temporary workers does not mean that the workers are being victimized or maltreated. Also, the fact that the workers are asked to re-apply for employment does not amount to victimization or maltreatment.