The Court of Appeal of Nigeria, Abuja Division, has overturned a judgment of the National Industrial Court of Nigeria and ordered the National Pension Commission (PenCom) to pay compensation to 20 former employees over what it described as wrongful termination and unfair labour treatment.
In a unanimous decision in appeal No. CA/ABJ/CV/830/2024, a three-member panel led by Bilkisu Bello Aliyu, with Donatus Okorowa and Oyejoju Oyewumi concurring, held that the workers’ appeal was meritorious and should be allowed.
Delivering the lead judgment on March 6, a copy of which was obtained by The Newsmatrics at the weekend, Justice Oyewumi set aside the June 13, 2023 ruling of the lower court, which had dismissed the workers’ claims in their entirety. The appellate court instead awarded each of the affected staff six months’ salaries plus one month’s pay in lieu of notice of termination.
It also imposed an additional N10 million cost on the Commission for subjecting the appellants to what it described as prolonged and unnecessary litigation since 2022.
The dispute traces back to 2017, when the 20 workers were issued employment letters by PenCom following a recruitment process that included public advertisement and interviews. Court documents showed that the employees resumed duty on May 2, 2017, but were neither deployed nor assigned any responsibilities.
Instead, they were instructed to “tarry” for further directives—instructions that, according to filings, never materialised for years despite repeated correspondence with the Commission. During this period, the workers said they received no salaries, allowances, or formal clarification of their employment status.
The appellants told the court they had resigned from previous jobs in reliance on PenCom’s offers, only to be left in limbo without income or defined roles. Their counsel, Samuel Ogala of the Falana & Falana Chambers, argued that the Commission could not frustrate the performance of a valid employment contract and then benefit from its own inaction.
In its ruling, the appellate court agreed, holding that the recruitment process, comprising advertisement, interviews, issuance, and acceptance of employment letters, created a valid and binding contract between the parties. It stressed that admitted facts require no further proof and that PenCom was therefore legally bound by its obligations.
The court described the workers’ prolonged ordeal as unjustifiable, noting that public institutions are expected to adhere strictly to contractual and statutory obligations, particularly in employment matters governed by the Pension Reform Act 2014 and the Public Service Rules.
“The appeal succeeds,” the court declared, nullifying the earlier judgment and granting reliefs to the appellants.
The workers had initially approached the National Industrial Court in suit No. NIC/ABJ/188/2022, alleging unfair labour practices, including non-payment of salaries, denial of promotions, and unlawful restriction from performing their duties.
They sought declarations affirming their status as employees under the Pension Reform Act, alongside orders compelling payment of all outstanding salaries, allowances, and entitlements.
They also requested injunctive reliefs to prevent alleged harassment and to compel the Commission to recognise their positions and promote them in line with its internal structure.
While the appellate court did not grant all the reliefs sought, its decision reinforces a growing body of Nigerian case law emphasising that employment relationships,especially in the public sector, are governed by enforceable contracts and statutory protections. Legal analysts say the ruling aligns with established judicial principles that employers cannot evade liability where a valid contract exists but is frustrated by their own actions.
The judgment is expected to have wider implications for public sector employment practices, particularly in cases involving delayed postings, non-payment of wages, and administrative inertia. It also underscores the courts’ increasing willingness to award damages and costs against government agencies found to have acted in breach of their obligations.
As of press time, PenCom had not publicly responded to the ruling.
