The National Industrial Court (NIC) in Lagos has ruled that the resignation of an employee from Atlas Copco Limited was wrongful and involuntary, determining that it was carried out “under pressure.” The ruling, delivered by Justice Maureen Esowe, highlighted the coercive tactics employed by the company’s management, leading to what the court deemed a case of “constructive discharge.”
The claimant, Mr. N. Olawale, contended that his resignation was not voluntary but was instead the result of undue pressure exerted by Atlas Copco’s managers and supervisors. According to Mr. Olawale, he was coerced into writing his resignation letter after being threatened with outright termination of his employment. This resignation, he argued, was a wrongful termination of his contract, and he sought justice in court.
Justice Esowe’s ruling, delivered in July 2024 and later published on the NIC’s official website on August 21, 2024, supported Mr. Olawale’s claim. The court found that the pressure applied by Atlas Copco Limited’s management amounted to constructive discharge, a situation where an employee is forced to resign due to unbearable working conditions.
“The conduct of Atlas Copco Limited, insisting on getting a decision on the options placed before Mr. Olawale regarding the modality of terminating his employment, clearly indicates a situation of constructive discharge,” Justice Esowe stated. The court held that Mr. Olawale might not have resigned if not for the coercion from the company’s management, thereby making the resignation wrongful.
Mr. Olawale’s legal team had argued for compensation of N102 million, stating that he had intended to remain with the company for 22 years. They claimed that the coercion and subsequent resignation deprived him of the opportunity to fulfill this long-term commitment. However, the court did not fully agree with this argument.
In response, Atlas Copco Limited’s legal team argued that Mr. Olawale’s claims were unfounded, asserting that there was no concrete evidence to support the allegations of resignation under duress, workplace discrimination, or harassment. The company also contended that the compensation sought by Mr. Olawale was unreasonable, as the “variable compensation applies only to the management staff of the company.”
While the court sided with Mr. Olawale on the issue of wrongful resignation, it dismissed his claim for N102 million in damages. Justice Esowe ruled that there was no certainty that Mr. Olawale would have remained employed with the company for 22 years, nor was there any guarantee that the company’s business would continue to thrive for that duration.
“The violation of the terms and conditions set out by the employer may result in a wrongful act for which the employer will be held liable in damages,” the court noted. However, it emphasized that “a wrongful act does not automatically translate to an illegal, unlawful, or unconstitutional act.”
Furthermore, the court clarified that in cases of wrongful termination of employment without statutory flavor, the appropriate remedy is a claim for damages rather than reinstatement or compensation for future earnings. As a result, the court awarded Mr. Olawale the sum of N1,000,000.00 in damages and an additional N300,000.00 for costs.
