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Court awards damages against Johnwood Hotel Limited over wrongful dismissal of employee

by Usman Kadri
March 21, 2026
Reading Time: 2 mins read
Court awards damages against Johnwood Hotel Limited over wrongful dismissal of employee
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The Abuja (FCT) division of the National Industrial Court, has ruled in favour of a former hotel supervisor, Mrs. Olajumoke Oluyemisi Obot, declaring her dismissal by Johnwood Hotel Limited, as wrongful due to a breach of her right to fair hearing.

Delivering judgment on suit marked NICN/ABJ/193/2024, filed by Mrs. Obot against the hotel and the dou of Mr. Kingsley Obiukwu and Mr. Polycarp Obiukwu, Justice E. D. Subilim held that although the employer had the right to discipline staff, it failed to follow due process before terminating the claimant’s employment over allegations of theft.

Mrs. Obot, who was employed as a Food and Beverage Supervisor in June 2022, was dismissed in June 2023 after a sum of N1,500, said to be a customer tip, was discovered on her during a routine security check.

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The hotel alleged gross misconduct, claiming she violated company policy by concealing the money and failing to declare it.

However, the claimant maintained that she acted on instructions from her manager to retain the tip overnight after being unable to officially register it. She further argued that she was not issued a formal query nor given an opportunity to defend herself before her dismissal.

In its defence, the hotel insisted that Mrs. Obot admitted to concealing the money and was subjected to an internal disciplinary process, including completing an incident report and appearing before a panel.

But the court found significant gaps in the employer’s case and the held that “the defendants failed to provide credible evidence of a proper disciplinary hearing or any formal query issued to the claimant. Testimonies from defence witnesses were also described as inconsistent and largely hearsay.

“The termination was carried out in violation of the principles of natural justice,” the judge ruled emphasizing that any allegation of misconduct must be accompanied by a fair opportunity for the employee to respond.

In the final determination of the suit the court awarded Mrs. Obot N85,000 as one month’s salary in lieu of notice and N2.72 million as damages for wrongful termination. An additional N200,000 was granted as cost of the suit, with 10% annual interest on the total judgment sum until full payment but declined to order reinstatement,

The court also dismissed the Claimant’s claims for defamation and reinstatement.

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