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

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.




Koriat Law