The National Industrial Court sitting in Lagos has declared the disengagement of a former employee of the Nigerian Security Printing and Minting Company Plc (NSPMC), Mr. Uwe, as wrongful, unconstitutional, and void, awarding him more than N95 million in damages and entitlements.
Delivering judgment at the Lagos Judicial Division, Justice Isaac Essien held that terminating the employee’s appointment at age 57—shortly before his statutory retirement age—after over two decades of service breached established labour standards, including provisions of the International Labour Organisation’sTermination of Employment Convention.
The court found that the action deprived the claimant of his legitimate expectation to earn salaries until retirement. It consequently converted the disengagement to a compulsory retirement, entitling him to full benefits in accordance with the company’s employee handbook.
Justice Essien awarded N27.3 million as damages for loss of earnings, N23.36 million as an exit incentive package, N292,234 as unremitted pension contributions with statutory interest, and N40 million as exemplary damages. A further N5 million was awarded as costs of the action.
In addition, the court directed the Nigerian Security Printing and Minting Company to issue an exit clearance letter within seven days to enable the claimant access his retirement savings account. All sums awarded are to attract post-judgment interest as ordered by the court.
According to court filings, the claimant stated that he was employed in 2002, had his appointment confirmed, and served for more than 20 years before being informed that his services were no longer required.
He argued that, given the company’s ownership by a Federal Government agency, he qualified as a public servant entitled to the security of tenure associated with pensionable public service employment. He further contended that the disengagement failed to comply with the company’s conditions of service, that he was not given the requisite notice for his cadre, and that the refusal to issue an exit clearance letter prevented him from accessing his pension benefits.
In its defence, the Nigerian Security Printing and Minting Company maintained that the employment relationship was purely contractual and that the claimant’s appointment had been lawfully terminated upon payment of salary in lieu of notice. The company also argued that the claimant was liable to refund certain unearned allowances and relied on prior disciplinary records in urging the court to dismiss the suit.
However, the court held that the disciplinary allegations were immaterial, as the disengagement letter did not cite misconduct as the basis for termination.
Justice Essien further ruled that, under Section 318(1) of the 1999 Constitution, the company forms part of the public service structure, thereby entitling the claimant to the protections associated with pensionable employment. The court concluded that the employer failed to justify the disengagement in line with its handbook and applicable labour standards, noting that the reason advanced did not constitute a recognised basis for valid termination.
