Court of Appeal Awards N10 Million Against PenCom for Unfair Labour Practices
The Court of Appeal, Abuja Division, has delivered a landmark judgment, setting aside a previous ruling by the National Industrial Court and awarding N10 million in costs against the National Pension Commission (PenCom) for unlawful labour practices. This decision comes in response to a case involving 20 aggrieved staff members who were left in employment limbo for years.
Unanimous Decision by Appellate Court
In a unanimous ruling, a three-member panel of the Court of Appeal, led by Justice Bilkisu Bello Aliyu and including Justices Donatus Okorowa and Oyebisi Omoleye Oyewumi, declared the workers' appeal as meritorious. The appeal, marked CA/ABJ/CV/830/2024, successfully overturned the June 13, 2023 judgment of the lower court, which had dismissed the workers' claims entirely.
Justice Oyewumi, who delivered the judgment, emphasized that the recruitment process undertaken by PenCom—comprising advertisement, interviews, and the issuance of employment letters—constituted a valid and binding contract. The court held that admitted facts require no further proof, establishing a contractual relationship that imposed legal obligations on PenCom.
Background of the Employment Dispute
The dispute originated from the plight of 20 workers who were issued letters of employment by PenCom and resumed duty on May 2, 2017. However, upon resumption, they were directed to "tarry" for further instructions, which never materialized. For years, these employees were left without deployment, assigned roles, or remuneration, despite repeated correspondence with the Commission.
The appellants argued that they had resigned from previous employment in reliance on PenCom's offer, only to be stranded without salaries, responsibilities, or clarity on their employment status. Represented by counsel Samuel Ogala of Falana & Falana chambers, the workers maintained that PenCom could not benefit from its own inaction in frustrating the performance of employment conditions.
Court's Ruling and Compensation
The appellate court described the workers' prolonged ordeal as unjustifiable and ruled in their favor, stating, "The appeal succeeds." In addition to setting aside the lower court's decision, the court awarded N10 million as costs against PenCom, citing the "unnecessary and unwarranted rigours of litigation" endured by the appellants since filing the suit in 2022.
The workers had accused PenCom of unfair labour practices, including:
- Non-payment of salaries
- Denial of promotions
- Unlawful restriction from performing duties
In their originating suit, marked NIC/ABJ/188/2022, the claimants sought declarations affirming their status as employees under the Pension Reform Act 2014 and the Public Service Rules. They also requested orders for payment of all outstanding salaries, allowances, and entitlements, as well as protection from harassment and an injunction to prevent further obstruction of their employment.
Legal Implications and Future Actions
The judgment underscores the legal obligations of employers in Nigeria and highlights the consequences of unfair labour practices. The court's decision mandates PenCom to address the workers' grievances, including potential payments of arrears and promotions based on the Commission's salary structure.
This ruling serves as a significant precedent for employment disputes in the public sector, reinforcing the importance of adhering to contractual agreements and statutory provisions. The case has drawn attention to the need for transparency and accountability in labour practices, particularly within government agencies.
