Benefits calculation: 1.00 equals 100 per cent, says court

By Robert Egbe

 

The National Industrial Court, Port Harcourt Division, has held that 1.00 of an amount means one (1) whole number and not a fraction (1/x).

Justice Nelson Ogbuanya also held that when converted into a percentage, 1.00 of an amount means 100 per cent and not one per cent.

The judge made the declaration in a judgment on a suit by a claimant Mr Francis Odeh against his former employer, Gasstocks Limited.

He observed that the judgment shows why aspiring lawyers should be proficient in mathematics.

Justice Ogbuanya said: “The mathematical issue presented for adjudication has once again provided justification for requiring performance in mathematics as a qualifying subject to study law in Nigerian universities, contrary to the erroneously held belief in some ill-informed quarters that those who opt to study law are bereft of mathematical and scientific abilities.”

In the suit marked NICN/PHC/51/2019, the claimant sought a resolution of his dispute the defendant, concerning the method of calculation of some aspects of his terminal benefits, upon his resignation from the employment.

He contended that the defendant not breached the terms and conditions attached to his offer letter of October 30, 2012, when it replaced the 1.00 of monthly and Annual Basic Salary in paragraph 5 and 6 under-compensation with one per cent of monthly and Annual Basic Salary due to the Claimant in paying the Claimant’s entitlements.

He averred that the defendant’s calculation led to him being short paid his entitlement to the tune of N6,183,333,32.

His counsel was Prof. A. Amuda-Kannike SAN.

In opposition, defendant’s counsel M.A Ichi contended that the entitlements that were subject to interpretation are the 13th month, vacation, and travel allowance each year.

Counsel argued that the defendant had been paying the claimant their own version of what the 1.00 means.

Delivering judgment on November 12, Justice Ogbuanya held: “To my mind, an elucidated outcome of the judicial interpretation of the issue of application of ‘1.00 to base salary (monthly /annually) and 13th month’, as expressed in Exhibit OJ1, would provide an aid to answer the legal questions posed in the Originating Summons and the reliefs sought thereto.

“A cursory review of the expression ‘1.00 of base salary (monthly/Annual) and 13th month’ would appear as mundane arithmetical computation occurring in everyday commercial and professional activities, but it has proved otherwise, posing a sharply divided outcome of the supposed entitlement.

“Accordingly, in my considered view, 1.00 of an amount means one (1) whole number and not a fraction (1/x); and when converted into per cent, it means 100%, and not 1%. And 13th Month as so expressed in Exhibit OJ1 means, an Additional Month of equivalent value in sum with every other month of the 12 months of a year. Thus, as this is a mathematical issue, I hold that ‘1.00 of base salary’ means 100% and not 1%.

“Applying this interpretation would entail that: The expression 1.00 of Monthly Base Salary is N100, 000.00, which is for 13th month; where monthly salary is N100, 000.00. The expression 1.00 of Annual Base Salary is N1, 200,000.00; where monthly salary is N100, 000.00 x 12 months. I so hold.”

The Court directed the firm to apply 1.00 to mean 100 per cent in calculating the entitlements of the claimant, being what is contained in the terms and conditions attached to the offer letter of October 30, 2012, and awarded the sum of N300, 000.00 (three hundred thousand naira)as general damages for breach of the employment contract.

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