Mr. Igwe, the Claimant, submitted his resignation letter in April 2021 and gave the required one month’s notice, which ended in April 2021. He stated that by the expiration of the notice period, he was no longer in the employment of Chan Medi Pharm.

He further stated that Chan Medi Pharm issued a memo refusing to accept his resignation on the ground that he had not provided his personal account for investigation. He contended that the company subsequently disregarded his resignation and issued him a dismissal letter.

He averred that the company’s refusal to pay his outstanding entitlements caused him financial hardship and emotional distress. He therefore instituted the action seeking, among other reliefs, the setting aside of his dismissal, payment of his outstanding entitlements, general damages, interest and costs.

Chan Medi Pharm contended that Mr. Igwe was a person of interest in an ongoing audit and investigation into alleged irregularities in the company’s management and financial affairs. It maintained that its refusal to accept his resignation was justified because he was under investigation, and that the resignation was viewed as an attempt to evade scrutiny.

The company further posited that Mr. Igwe remained its employee until his eventual dismissal because he was aware that his resignation had been rejected before the expiration of his notice period.

It urged the Court to dismiss the suit in its entirety, contending that its actions were justified by his alleged failure to cooperate with the audit and investigative processes and his alleged abscondment from duty.

No, not unless the contract says otherwise. Hon. Justice Ibrahim Galadima held that resignation is a voluntary relinquishment of employment and that, unless the contract of employment provides otherwise, it takes effect once the employee complies with the notice requirement. It does not require the employer’s acceptance to become operative.

No. The Court stated that there was no clause in the appointment or subsequent letters placed before it which made the resignation conditional upon Chan Medi Pharm’s acceptance or the conclusion of investigations.

No. The Court held that a rejection letter unilaterally generated by an employer could not override a valid resignation duly issued in accordance with the contract.

Not on the facts of this case. Justice Galadima held that the investigation into the alleged financial irregularities did not extinguish Mr. Igwe’s valid notice of resignation, as Chan Medi Pharm failed to show any legal basis for suspending the effect of the resignation.

The Court held that once Mr. Igwe’s employment ended in April 2021, there was no employment relationship left upon which the company could subsequently act by issuing the dismissal letter dated June 2021.

No. Justice Galadima held that issuing a dismissal letter after the employment had already ended was a serious and injurious act capable of stigmatizing Mr. Igwe and affecting his reputation and post-employment standing.

The Court ordered Chan Medi Pharm to pay:

The Court found that Mr. Igwe established his entitlement to gratuity and cooperative deductions, and that his pension contributions had not been remitted in full and tax deductions from his earnings had not been remitted as required.

However, it held that he failed to sufficiently prove his claims for salary differential and leave allowance.