Appeal Court awards N10m against PenCom for unfair labour practices

Court slams PenCom with N10m fine, orders pay for 20 affected workers Court slams PenCom with N10m fine, orders pay for 20 affected workers
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The court of appeal in Abuja has fined the National Pension Commission (PenCom) N10 million and ordered it to pay six months’ salaries and allowances to 20 workers over “unfair labour practices.”

The appellate panel, in a unanimous judgment delivered on March 6, overturned a June 13, 2023 ruling by the National Industrial Court (NIC), which had dismissed the workers’ claims.

The three-member panel was led by Justice Bilikisu Bello Aliyu, with Justice Oyewumi delivering the lead judgment.

The case arose after the employees, led by Ismalia Oluwatosin Gizali, claimed they were recruited in 2017, issued letters of employment, and asked to resign from previous jobs.

However, they alleged they were never assigned duties or paid salaries.

In its ruling, the court of appeal affirmed that a valid employment relationship existed, rejecting PenCom’s claim that the employment was conditional and therefore not binding.

“The letters of employment clearly created a probationary employment arrangement and became effective once accepted by the workers,” Justice Oyewumi said.

The court further criticised PenCom for failing to deploy the workers after directing them to resign from prior employment.

“The commission’s conduct in asking the workers to resume, directing them to resign from previous employment, and then failing to deploy or pay them was unjustifiable,” Justice Oyewumi noted.

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

The judgement described PenCom’s actions as both an unfair labour practice and a breach of contract.

 

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