Mass Layoff: Sacked Staff Drag CBN to Court, Make Serious Demand
- Former staff of the Central Bank of Nigeria have gone to court to protest what they term to be an unlawful and unfair termination of employment
- They are asking the court to declare the termination process null and void, and reinstate them as staff of the apex bank
- They also want complete payment of benefits and salaries from the date of their sack, and a restraining order to prevent the CBN from repeating said action
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience and a deep understanding of Nigeria's corporate sector and emerging trends in the fintech space.
Former employees of the Central Bank of Nigeria (CBN), who were dismissed in the 2024 mass layoffs, have sued the apex bank.
The class-action lawsuit, filed at the National Industrial Court of Nigeria (NICN), Abuja is based on claims that CBN’s actions violated Nigerian labour laws, internal policies, and the staff’s contractual rights.
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The claimants, to be represented by Stephen Gana and 32 others, alleged that the process was arbitrary and unlawful and denied them the right to a fair hearing before or after the termination of their appointments, PREMIUM TIMES reports.
They argued that the termination of appointments, issued through letters titled “Reorganisational and Human Capital Restructuring”, dated April 5, 2024, ran foul of Section 36 of the Nigerian Constitution and the CBN Human Resources Policies and Procedures Manual (HRPPM).
Citing Article 16.4.1 of the HRPPM, which mandates adherence to fair procedures and consultation with the Joint Consultative Council before taking actions that adversely affect staff, they alleged that this was skipped in the termination process, and they were asked to vacate their positions and hand over official property within three days.
What sacked staff are demanding
The originating summons, filed on July 4, 2024, under the NICN Civil Procedure Rules 2017, demands the court to determine, among others things, whether the claimants were denied their right to a fair hearing, before and after the termination exercise.
The sacked staff also pray that the court declare the layoff null, void and of no effect. They demand their immediate reinstatement and payment of all salaries and benefits from the layoff date.
They also want the court to grant a restraining order preventing the apex bank from dismissing them without due process.
N30 billion claims for damages
They are also seeking N30 billion claims for psychological distress, hardship, and harm to their reputation.
Their claims also include another N500 million as the cost of the suit.
Details of the layoffs
The terminations occurred between March and May 2024, and at least 218 employees were affected, including 116 executive-level staff, 97 senior-level employees, and five junior-level workers.
Some of the affected staff complained that after the bank offset their outstanding loans and staff cooperative loans, they were left with little or no severance payments.
Some who had worked less than 10 years, even found themselves left with unsettled loans as their gratuities could not cover their loans due to the short time worked.
They argued that the bank failed to secure board approval for the exercise.
In its preliminary objection, the CBN defended its action stating that the affected employees received three months' pay in place of the required notice, and no contractual right was violated.
About a month ago, the House of Representatives initiated an investigation into the CBN's move, arguing that the development raises questions about the criteria used.
CBN Explains Early Exit programme
Meanwhile, CBN Governor Olayemi Cardoso recently addressed the National Assembly on the exit of 1000 employees who left in December 2024.
Represented by Bala Bello, the Deputy Director of Corporate Services, the CBN governor said that the exit was part of a restructuring and reorganisation plan to optimise performance and digitise operations.
He noted that the initiative would ensure that the bank's manpower is aligned with its operational needs and IT requirements.
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Source: Legit.ng
