Determination of Contract of Employment

The position of the law is that where a contract of service gives a party a right of termination of the contract by either party, the party seeking to put an end to the contract must pay to the other party the salary in lieu of notice at the time of termination of the contract. Where this is not done the termination of the appellants employment would be unlawful. See Chukwumah v. Shell (1993) 4 NWLR (Pt.

The remedy for unlawful termination of employment is to sue for damages and the employee must mitigate those damages. See Olatunbosun v NISER Council (1988) 19 NSCC (Pt. 1) p. 1025.

In ordinary contract of employment where the terms provide for one month's notice before the termination or salary in lieu thereof, the only remedy an employee who is wrongfully terminated can get is a month's salary in lieu of notice and any other legitimate entitlement due to him at the time the employment was brought to an end. See Katto v. C.B.N. (1999) 6 NWLR (Pt. 607) 390, Western Nigerian Development Corporation v. Abimbola (1966) 1 All NLR 159.

A private limited liability Company or any employer of labour like the Respondent in the instant case does not have any obligation to retain the services of any unwanted employee and may terminate the appointment of the employee without any reason. See Obe v. Nigersol Construction Company Ltd. (1972) 2 U.I.L.R. (Pt. 11) 121.

The law is settled that in a claim for wrongful dismissal, the measure of damages is prima facie the amount that the plaintiff would have earned had the employment continued according to the contract: NIGERIA PRODUCE MARKETING BOARD v. A. I. ADEWUMI (1972) 1 ALL NLR (Pt. 2) 433 at 437. Where the plaintiff was by terms of the contract, entitled to be given one month notice before the termination of his appointment by the employer, the defendant; the plaintiff is only entitled to be paid the amount he would have earned, or entitled to be paid, within the period of one month. That is the amount he would have earned within the period of the mandatory notice: WESTERN NIGERIA DEVELOPMENT CORPORATION v. JIMOH ABIMBOLA (1966) NMLR 381 at 382.