The National Industrial Court sitting in Lagos has ordered The Fountain School, a private institution, to pay a former teacher, Mrs. Anniette Ukpe, a total of ₦4.4 million for failing to settle her retirement benefits after 27 years of service.
Delivering judgment, Hon. Justice Joyce A. O. Damachi held that the school wrongfully denied Mrs. Ukpe her entitlements following the termination of her employment in November 2021. The court ruled that an employer cannot rely on technicalities to deny long-established employment benefits, particularly where both parties have consistently operated under the same conditions for years. The judge stressed that the decision was necessary to protect workers from unfair treatment after lengthy service.
Presenting her case, Mrs. Ukpe told the court that she was employed by The Fountain School in 1992 as a teacher and had her appointment confirmed in 1994. She said she served continuously for 27 years before her employment was brought to an end.
Through her counsel, she argued that, under the school’s Conditions of Service, staff members who had worked for 16 years or more were entitled to 100 per cent of their basic salary and allowances as gratuity. Despite repeated demands, she said, the school refused to pay her benefits after her exit.
She further disputed the school’s claim that gratuity payments were discontinued in 2005 following the Pension Reform Act 2004. According to her, other employees who left after 2005 were still paid gratuity. She relied on documentary evidence showing that her husband, who also worked at the school, received gratuity upon leaving.
In its defence, The Fountain School contended that Mrs. Ukpewas not entitled to gratuity because she neither signed nor returned the Conditions of Service. It also argued that gratuity had been replaced by a contributory pension scheme.
The school described the documents tendered by Mrs. Ukpe as hearsay and urged the court to dismiss the suit in its entirety.
However, in a well-considered judgment, Justice Damachirejected the school’s arguments. She held that a contract of employment need not be formally signed to be binding where both parties have acted on it over an extended period.
The judge observed that the school had relied on the Conditions of Service for more than 26 years in paying salaries and administering staff matters, and could not repudiate the same document simply to deny Mrs. Ukpe her benefits.
Justice Damachi also found that the school failed to prove that the gratuity scheme had been discontinued or validly replaced by pension contributions. She ruled that the institution could not selectively apply parts of the Conditions of Service while ignoring others.
Consequently, the court awarded Mrs. Ukpe ₦1.9 million as gratuity, ₦2 million as general damages, and ₦500,000 as costs of action, bringing the total to ₦4.4 million.
The court, however, declined her claim for pre-judgment interest, citing the absence of any contractual or legal basis.
Justice Damachi ordered that all sums be paid within 30 days, warning that failure to comply would attract post-judgment interest at the rate of 10 per cent per annum.
She added that the ruling should serve as a warning to employers to respect workers’ rights and honour agreed employment conditions, particularly after long years of service.
