Retiree Drags UAC to Court over Unpaid Retirement Benefits

One of Nigeria's oldest food manufacturing companies, UAC Nigeria plc, has been dragged to court over its alleged refusal to pay the retirement benefits of one of its longest serving staff, Mrs. Abolade Ajala.

In the suit with NICN/ LA/585/215, filed before the National Industrial Court of Nigeria in Lagos, the claimant alleged that UAC withheld the sum of N26,558,012.76, being the balance of her retirement benefits, since she retired from the company on August 12, 2011 after spending 29 years in the service of the company where she held the position of Senior Management Officer at the time of her retirement.

Counsel to claimant, Mr. Olatunde Adejuyigbe SAN had told the trial judge, Justice O.O Oyewumi, when the matter came up for mention last Thursday, that in spite of serving the defendant the court processes on January 16, 2016, the defendant has refused to file its defence. The defendant was also not represented at the hearing.

The trial judge therefore ordered the defendant to file its defence within seven days and adjourned till March 16, 2016 for report on the compliance with the order.

In her statement of claim, the claimant alleged that her letter of retirement from the company dated August 12, 2011 indicated that a total sum of N35, 558,012.76 being the total sum of her retirement benefits would be paid to her 'on her exit date'.

She stated that she was surprised that just N9 million was later paid to her instead of over N35 million which she was entitled to.

"Out of the entire sum, only the sum of N9 million was paid by the defendant vide an Oceanic bank cheque dated December 23, 2015, "she alleged.

She further stated that the defendant is also owing her 'post retirement contract salaries at the rate of N200,000 per month from April 2013 to January 2014 totalling N2 million.'

As a way of recovering her money, the claimant stated that she wrote a letter dated June 8, 2015 to the company reminding them of the 'balance of her gratuity at retirement as well as the outstanding salaries and demanded that the money be paid.'

However, she alleged the company refused to respond to the said letter.

The claimant's solicitor reiterated the demand for the payments vide a letter dated September 7, 2015 to which there has been no response till date.

According to her, the nonpayment of her benefits has deprived her ' the benefits and interests she should have earned as income if she had invested the funds in buying Treasury Bills from her financial institution from time to time.'

She further alleged that the defendant ' has been trading with her benefits and earning profits from it. '

The claimant is therefore seeking for ' an order of the court compelling the defendant to pay to the claimant the sum of N28,558,012.76 being the outstanding retirement benefits and unpaid salaries due to the claimant from December 1, 2011 till February 28, 2015.

Also ' interest on the sum of N28, 558,012.76 at the rate of 11percent per annum from December 1, 2011 until judgement and thereafter at the rate of 30percent per annum until the debt is liquidated.'

Another relief sought by the claimant is the sum of N3 million ' being the legal fees incurred by the claim.