By Elvis Evbaruovbokhanre Asia
Case: Emeya Patrick Ehiametalor V. Heritage Bank[1]
Judge: Hon. Justice S. A. Yelwa
Date: 17/7/2024
Main issue of law
Enforcement of Handbooks and Policy Manuals
Summary of facts
The Claimant, who was no longer employed by the Defendant, filed an action claiming entitlement to a Status Car under the Defendant’s Human Capital Policy Manual during his tenure. The Manual provides that employees in senior managerial roles are entitled to a Status Car or, alternatively, a monetary sum equivalent to the car’s value. The Claimant alleged that other senior managers received Status Cars except for him. The Defendant argued that the Human Capital Policy Manual had not been incorporated into the Claimant’s terms of employment, and even if it had, the Claimant was no longer entitled to the benefit, as he was no longer an employee.
Court’s Decision
The court dismissed the claim, holding that the Defendant’s Human Capital Policy Manual had not been incorporated into the Claimant’s contract of employment. Additionally, the court ruled that even if the policy had been incorporated, the Claimant was not entitled to the benefit, as the Manual contained conditions that could not be met by someone who was no longer an employee.
Legal principles relied on
- A claimant who seeks to enforce a right under a policy manual must show that the manual was incorporated into their contract of employment.
- Entitlements under a Human Capital Policy Manual that are subject to conditions cannot be claimed by someone who is no longer an employee.
Commentary
Overall, this judgment highlights the importance of ensuring that employment policy handbooks and manuals are expressly incorporated into employment contracts for enforceability. Even when employment letters reference handbooks or Human Capital Policy Manuals, the enforceability of subsequent amendments—if not explicitly accepted or incorporated into the terms of employment—may be difficult to assert, particularly when one party seeks to avoid obligations under the policy.
However, the court’s decision on the incorporation of the employment policy manual warrants further reflection. It is established law that incorporation can be demonstrated through evidence of the policy’s application. The court noted that the Claimant received monthly fuel and maintenance allowances under the Manual. Had this fact been properly pleaded and proven, it might have influenced the court’s decision regarding the incorporation of the Manual into the terms of employment.
It is clear that the unique facts of each case determine whether policy manuals and handbooks are incorporated into employment contracts, but there is a need for consistency from the courts in defining the relevant parameters for incorporation and enforcement. In Crown Flour Mills Ltd v. Gbenga Akinyemi[2], for instance, the court held that evidence of the employee’s access to relevant policy documents was sufficient proof of incorporation. In the present case, there was no doubt that the employee had access to the policy, and, as mentioned, the court acknowledged that the employee had received certain benefits under the Manual.
Elvis E. Asia is the Managing Partner of Law Future Partners and a PartneratBols Attorneys, Nigeria. He has an LLB, Ambrose Alli University; and LLM from the University of Lagos. He is a member of the Chartered Institute of Arbitrators, United Kingdom, Institute of Chartered Secretaries and Administrators of Nigeria and the Chartered Institute of Taxation of Nigeria. Elvis is the author of the book ‘Oil and Gas Insurance and Nigeria’s Local Content Policy’
Footnotes
[1]SUIT NO: NICN/LA/249/2023. Full judgment at https://nicnadr.gov.ng/judgement/judgement.php?id=9107
[2] See the 6th edition, available online at https://dnllegalandstyle.com/dnl/wrj-nicn-no-6-construction-of-contract-of-employment-and-implied-duties-a-review-of-crown-flour-mills-ltd-v-gbenga-akinyemi/