Hon. Justice Ikechi Nweneka of the National Industrial Court, Lagos Division, has ruled that the Ikoyi Club’s decision to unilaterally reduce Mr. Adekola’s salary and leave allowance for the months of April, May, and June 2020 was a breach of his employment contract and an unfair labor practice.
The Court has directed the Club to pay Mr. Adekola N337,247, representing the balance of his salary, along with N101,003.85 as his prorated leave allowance for the same period. Additionally, the Court ordered the Club to transfer outstanding pension contributions to Mr. Adekola’s Stanbic IBTC Retirement Savings Account: N17,717.66 for April, N17,837.98 for May, and N13,211.32 for June. The Ikoyi Club was also ordered to pay N200,000 as costs for the legal action.
Mr. Adekola claimed that his employment was confirmed on December 1, 2018, and he had been performing duties as Head of the Committee Secretariat, assisting his senior during their preparation for retirement. He alleged that the Club had reduced his salary without informing him of the reason and argued that this was in violation of his employment contract and the International Labour Organization’s Protection of Wages Convention.
In defense, the Ikoyi Club contended that Mr. Adekola was not entitled to an acting allowance or the salary scale of the Head of Committee Secretariat, as he did not produce the required written notification for acting in a higher capacity. The Club argued that the payment of N330,046.38 represented Mr. Adekola’s terminal benefits, and the salary reduction due to the COVID-19 pandemic was justified as fair labor practice.
However, the Court found the Club’s arguments unconvincing, particularly noting that the internal memo allegedly informing staff about the salary deduction was not produced in evidence. Justice Nweneka ruled that no deductions could be made from an employee’s salary unless permitted by law, and dismissed the Club’s defense of fair labor practice.
Ultimately, the Court declared the Club’s actions unlawful and upheld Mr. Adekola’s claims for payment.
