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NATIONALUNION OFHOTELSANDPERSONALSERV1CESWORKERS AND EKO LE-MERIDIEN HOTELS LIMITED (NATIONAL INDUSTRIAL COURT) H ON. JUSTICE (CHIEF) P.A. ATILADE PRESIDENT ALHAJI Z. M. ZAKARI MEMBER B. N. OBUA, ESQ MEMBER SUIT NO: NIC/7/89 DATE OF JUDGMENT TUESDAY, 30TH APRIL 1991. LABOUR LAW Redundancy - Where restructuring exercise leads to massive retrenchment of workers - Duty on court to treat termination on ground of redundancy - Entitlements available to affected workers. ISSUE: Whether the ninety-six workers were terminated on ground of redundancy, or whether they were terminated in accordance with the terms of their employment. FACTS: Between August and December, 1988, the management of Eko Hotels Limited changed because of the incompetence of Eko Hotels Limited’s consultants - Eko Holiday Inn of America. Consequently, Eko Le-Meridien of France took over the management off Hotel. The new management decided to carry out a reorganization of the establishment, which resulted in the termination of ninety-six workers. A dispute arose between the parties and they went for conciliation, which failed. Later, the matter was referred to the Industrial Arbitration Panel. The Appellant was dissatisfied with the Panel’s award, and appealed to the National Industrial Court. HELD: (Allowing the appeal and awarding severance pay to affected workers): On When restructuring will be treated as termination of appointment on ground of redundancy Where a restructuring exercise carried out by the management of a company leads to the loss of the job of many workers, such a massive retrenchment treated as a product redundancy situation. In the instant case, the management of Eko Le-Meridien did not all the steps set down by law to establish redundancy when retrenching the ninety-six workers. In the circumstances, therefore, the affected workers are entitled to severance pay, because of non-compliance with the law on the part of the Hotel management, in addition gratuity and any other allowances already offered to them.