Home » Court of Appeal Fines PenCom ₦10M for Labour Violations

Court of Appeal Fines PenCom ₦10M for Labour Violations

By Ayomide Otitoju

The Court of Appeal, Abuja Division, has overturned a National Industrial Court judgment and ordered the National Pension Commission (PenCom) to pay ₦10 million in costs for unlawful labour practices affecting 20 former employees.

In a unanimous ruling, a three-member panel led by Justice Bilkisu Aliyu, with Justices Donatus Okorowa and Oyebisi Omoleye Oyewumi concurring, held that the workers’ appeal was meritorious. The appellate court nullified the June 13, 2023, decision of the lower court, which had dismissed the employees’ claims in full.

The dispute involved 20 workers who were issued employment letters by PenCom and reported for duty on May 2, 2017, but were neither deployed nor assigned roles and were left unpaid for years. Despite repeated correspondence, the employees were repeatedly told to “tarry” for instructions that never came. Many resigned from previous jobs in reliance on PenCom’s offer, only to be left without salaries or clarity on their employment status.

Represented by Samuel Ogala of Falana & Falana Chambers, the workers argued that PenCom could not frustrate the performance of employment conditions while benefiting from its own inaction. The Court of Appeal agreed, ruling that the recruitment process—advertisement, interview, and issuance of employment letters—constituted a valid and binding contract.

“The appeal succeeds,” the court held, describing the workers’ prolonged ordeal as unjustifiable. It set aside the lower court’s ruling and awarded ₦10 million in costs against PenCom, citing the “unnecessary and unwarranted rigours of litigation” endured by the employees since filing the suit in 2022.

The workers had originally accused PenCom of unfair labour practices, including non-payment of salaries, denial of promotions, and obstruction from performing their duties. They sought declarations affirming their employment under the Pension Reform Act 2014 and Public Service Rules, alongside orders for payment of all outstanding salaries, allowances, and entitlements.

The suit, marked NIC/ABJ/188/2022, also requested protection from harassment and an injunction preventing the Commission from obstructing the employees from carrying out their statutory functions.

The appellate ruling underscores the court’s recognition of a valid contractual relationship between PenCom and the employees, imposing legal obligations on the Commission to honour the terms of employment

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