According to a report by Nigerian Communications Week, the National Industrial Court of Nigeria (NICN), Akure Division, ordered MTN Nigeria Communications Limited and MTN International, Mauritius, to pay its former Network Group Operations Manager, Paul Odunewu, $13,419,728.54, £10,000 and N2,540,000 (totaling: N4,825,036,735.9) following wrongful termination of his employment. MTN has since said that it has approached a higher court to set aside the judgment by the NICN.
Justice Oyejoju Oyewunmi, of the NICN, made the judgment following Odunewu’s suit which challenged his 2006 termination and the deprivation of his entitlements including share options valued at $13,144,512.00. The suit which included, MTN Group Limited: South Africa; MTN Nigeria and MTN International, lasted 10 years moving from the Lagos State High Court to the NICN.
According to a report by Business Times Africa, Justice Oyewunmi ordered that the sums be paid by the second (MTN Nigeria) and third defendants (MTN Group Limited: South Africa), “except the issue of costs which is to be paid by all the defendants.
“The judge ordered MTN to make the payments within 30 days following which the sums would appreciate at 21 percent interest per annum. In reaching the judgment, the court agreed with the submissions of Odunewu’s counsel, Kemi Balogun (SAN), that MTN unfairly imposed a restraint of trade on Odunewu, thus preventing him from working for a period. The judge upheld Balogun’s submission that the evidence showed that Odunewu neither committed any serious, persistent breach of the provisions of the agreement or the company’s code, nor was ever summoned to a disciplinary committee or found guilty of any misconduct or non-performance.
Justice Oyewunmi found that the defendants failed to controvert the testimony of a former MTN Chief Executive Officer, Adrian Wood, regarding the offers made to Odunewu which persuaded him to quit his job in The United Kingdom and join MTN. Odunewu, a UK-based chartered engineer, was employed by MTN Nigeria in 2001.
Odunewu claimed that MTN convinced him to return home from the UK and help the company to develop its telecommunications in Nigeria. He highlighted that among the reasons he decided to accept the offer was because he was promised, among others, a Share Option, a long-term incentive scheme being developed by MTN.
Odunewu said when he complained that the Share Option was not contained in his offer letter, MTN persuaded him to accept the job, adding that he would be entitled to the shares after three years. Odunewu said he worked at MTN for over four years, and was responsible for the network’s outstanding achievements, which continues till date.
MTN has since responded to the court order. In a statement issued by Omasan Ogisi, general manager corporate affairs of the company, on Saturday 30 September 2017, MTN said it is committed to treating all its employees fairly.
“We can confirm that the National industrial Court took a position which we consider detrimental to our interests in a suit filed by a former employee. The court’s position has been reviewed by our internal and external counsel,” the statement read.
“Following that review, we have approached a higher court requesting that the decision of the industrial court be set aside. We believe that there are critical elements of our case which were not fully considered by the lower court before taking its position.”
“We are confident that the outcome at the superior court will be different and that justice will not only be done but will be seen to be done in this case.”
“MTN is committed to a policy of openness, integrity, diligence and professionalism in the conduct of business – with customers, shareholders and each other. Our code of conduct stipulates high labour standards regarding all our employees. In addition, we have processes in place to ensure that we act in accordance with international standards and local laws.”
“We, therefore, maintain that we treat all our employees fairly, as captured in the details of our employment contracts, signed and legally binding. This situation was no different. The most basic commitment we make – to our customers, our shareholders, and each other – is to conduct ourselves in an ethical, honest and respectful manner,” concluded the statement.
Edited By Dean Workman
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