Court of Appeal Slams PenCom with ₦10m Costs Over Unlawful Labor Practices
The Court of Appeal, Abuja Division, has set aside the judgment of the National Industrial Court delivered on 13 June 2023, and entered judgment in favour of twenty employees against the National Pension Commission (PenCom) and its Chairman. The appellate court awarded ₦10 million in costs, holding PenCom liable for unlawful labour practices.
In a unanimous decision, Justice Oyejoju Oyebiola Oyewumi delivered the lead judgment, with Justices Bilkisu Bello Aliyu and Donatus Uwaezuoke Okorowo concurring. The court held that the appeal was meritorious and deserved to succeed.
The dispute stemmed from PenCom’s 2017 recruitment exercise, in which twenty successful candidates were issued employment letters for positions ranging from Assistant Manager to Senior Executive Assistant. The letters directed them to resume on 2 May 2017 at PenCom’s headquarters in Abuja. However, instead of being deployed, the employees were instructed to remain at home pending further directives, which never materialised.
The court found that the employment letters imposed conditions, such as medical tests, referee reports, and probation—which required PenCom’s cooperation. PenCom’s failure to provide the necessary support frustrated the employees’ ability to comply. Some of the workers had resigned from existing positions in reputable banks, thereby suffering detriment in reliance on PenCom’s representations.
Represented by Samuel Ogala, Esq., of Falana & Falana Chambers, the employees argued that PenCom could not benefit from its own wrong, and invoked the doctrine of estoppel. PenCom countered that the employment was conditional and unenforceable, raising objections on jurisdiction and limitation.
The Court of Appeal dismissed PenCom’s objections, affirming that unchallenged decisions remain binding. It held that a valid probationary employment relationship existed, and that PenCom’s conduct breached the employees’ legitimate expectations. Applying estoppel, the court ruled that PenCom could not induce resignations and then deny the existence of employment.
Accordingly, each employee was awarded six months’ salary plus one month in lieu of notice, calculated from 1 March 2017. In addition, PenCom was ordered to pay ₦10 million in legal costs, the court noting the needless litigation endured since 2022.
This judgment underscores a critical principle in Nigerian labour law: an employer cannot frustrate conditions of service it created and then evade liability. It also reaffirms the corrective role of appellate courts in ensuring fairness and justice in employment relations.
