Appeal court fines PenCom N10m for ‘unfair’ labour practice against 20 workers

The court of appeal in Abuja has awarded N10 million in costs against the National Pension Commission (PenCom) and its chairman over “unfair labour practices involving 20 staff members”.

The appellate court also ordered the commission to pay the affected workers six months’ salaries and allowances.

In a unanimous judgment delivered on March 6, a three-member panel of the court set aside the June 13, 2023 decision of the National Industrial Court (NIC), Abuja, which had dismissed the workers’ claims.

The panel was presided over by Bilikisu Bello Aliyu, while Oyejoju Oyewumi delivered the lead judgment.

BACKGROUND

The case was filed by 20 workers led by Ismalia Oluwatosin Gizali.

They told the trial court that after undergoing a recruitment process, including tests and interviews, PenCom issued them letters of employment.

The workers said they resumed duty in May 2017 but were neither assigned responsibilities nor paid salaries.

According to them, the commission directed them to resign from their previous jobs and later asked them to await further instructions, which never came.

In its 2023 judgment, the NIC held that no valid employment relationship existed between the parties and dismissed the suit.

Dissatisfied with the ruling, the workers approached the court of appeal.

APPEAL COURT’S FINDINGS

In overturning the NIC decision, the appellate court held that a valid employment relationship existed between the parties.

Oyewumi said the argument by PenCom that the employment was merely conditional and therefore not binding was not supported by the evidence before the court.

She held that the letters of employment clearly created a probationary employment arrangement and became effective once accepted by the workers.

The judge added that the recruitment process, including aptitude tests, interviews, and issuance of offer letters, reinforced the existence of a binding employment relationship.

The court held that PenCom’s conduct in asking the workers to resume, directing them to resign from their previous employment, and then failing to deploy or pay them was unjustifiable.

Oyewumi said the commission could not frustrate the employment process and later rely on that failure to deny the workers their rights.

She added that the workers acted on the strength of the employment offers to their detriment, and that the commission was prevented from denying the relationship.

The court described the conduct as an unfair labour practice and a breach of contract.