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ASSOCIATION OF SENIOR STAFF OF BANKS, INSURANCE AND FINANCIAL INSTITUTIONS (ON BEHALF OF ITS SAVANNAH BANK DOMESTIC UNIT). AND NIGERIA EMPLOYERS ASSOCIATION OF BANKS, INSURANCE AND ALLIED INSTITUTIONS (NATIONAL INDUSTRIAL COURT) HON. JUSTICE (CHIEF) P. A. ATILADE - PRESENT M.A. BORISADE, ESQ. - MEMBER B.N. OBUA, ESQ. - MEMBER SUIT NO: - NIC/6/88 DATE OF JUDGMENT - FRIDAY, 30TH NOVEMBER 1990 LABOUR LAW - - Reinstatement - Employees whose termination has been declared ineffective - When court will not order reinstatement of- Remedy court will grant. ISSUES: 1. Whether the eleven Savannah Bank senior staff, whose appointments were terminated, were grossly negligent in the performance of their functions during May - November, 1986, resulting in a N2.1 Million fraud which occurred in the bank. 2. Whether in terminating the appointment of the affected staff, the management of Bank observed the Collective Agreement between the Nigeria Employers Association of Banks, Insurance and Allied Institutions (NEABIAI) and the Association of Senior Staff of Banks, Insurance and Allied Financial Institutions (ASSBIFI). FACTS: The dispute between the parties arose following the termination of the appointments of eleven senior staff in the Savannah Bank of Nigeria Limited by the Bank’s management for what the management described as gross negligence resulting in the Bank sustaining the loss of N2.1 Million. The Appellant union challenged the propriety of the management’s action in terminating the appointments of the eleven staff and sought the reinstatement of the affected staff. The dispute was then referred to the Industrial Arbitration Panel, which ordered reinstatement of only one of the eleven staff concerned. The Appellant union being dissatisfied with the IAP award, appealed to the National Industrial Court. HELD (Allowing the appeal but refusing to order reinstatement). On When court will not order reinstatement of employees and remedy court will grant - The court will not order the reinstatement of employees even where the termination of their appointments is declared ineffective, where it is clear to the court that the management of the company has lost trust and confidence in their continued employment. Rather, the court will change the purported termination to early retirement and order payment of their gratuity, pension and other benefits.