Dec 6, 2020

Out-of-Court Settlement of Employment Dispute | Kayode Omosehin

There are good reasons to explore early settlement of employment dispute. To cut costs; avoid distractions to the Mgt or other workers; prevent floodgates of future litigation; protect and project a brand with a good corporate conscience.


Whenever settlement is suggested or possible, it should be genuinely pursued and expedited by those who have authority to commit a company. Litigation lawyers should know when the other party is stalling. Sending a low level staff to a settlement meeting is a waste of everyone's time.


In Rasheed v A.C. Ltd, a claim of N300,000 was delayed for 6 years due to a protracted settlement process!

Litigation hardly pays a company. The most enduring discretionary power of a company can be yanked off in just one litigation.

In Ozughalu v. B.V.N. Ltd., an allowance which was introduced as a discretionary payment and has been paid, reduced or denied at will for many years, when challenged, was ordered by Court to be payable to an employee as of right.

The above is why companies should opt for early settlement whenever an unclear aspect of its policy is being challenged for the first time in court. Settle first and then amend the policy to avoid floodgate of litigations by other employees who are watching.


Kayode Omosehin


Koriat Law