The National Industrial Court, Ibadan Judicial Division, has ordered the immediate reinstatement of 108 employees of the Obafemi Awolowo University Teaching Hospitals Complex (OAUTHC), Ile-Ife, declaring the termination of their appointments unlawful and without legal foundation.
Delivering judgment, Justice Dele Peters ruled that the workers remained legitimate employees of the institution despite the termination circular issued on 31 January 2024 and were therefore entitled to all outstanding salaries, allowances, and employment benefits.
The suit was instituted in a representative capacity by AdedireCaroline O., Kehinde Olawale Samuel, Fawole Yemisi Janet, Oyebade Aderonke Abiodun, Oyenuga Yetunde Oluwakemi, Salami Taofeek Olusina, and 102 other affected employees.
Justice Peters directed the OAUTHC Management Board to immediately reinstate the workers, calculate and pay all outstanding salaries, allowances, and entitlements accruing from 31 January 2024 until the date of judgment, and pay ₦500,000 as the cost of the action.
The court further ordered that the affected workers be allowed to resume their duties without harassment, intimidation, or restriction.
The claimants told the court that they had been duly employed, resumed work, and received salaries for approximately one year before payments were abruptly discontinued. They subsequently became aware of a circular declaring their appointments irregular on the grounds that approved waiver limits from the Office of the Head of the Civil Service of the Federation had allegedly been exceeded.
They argued that the termination violated both their contracts of employment and the provisions of the University Teaching Hospitals (Reconstitution of Boards, etc.) Act, 2013.
In response, the OAUTHC Management Board maintained that the recruitment exercise exceeded approved limits and contended that the Minister of Health and Social Welfare had directed the cancellation of the appointments to correct administrative irregularities.
Counsel to the board argued that the termination effectively ended the employment relationship and relied on the principle of “no work, no pay,” asserting that the affected employees had not rendered services since January 2024.
However, counsel to the claimants maintained that the termination process failed to comply with statutory requirements and was therefore null and void.
In his judgment, Justice Peters held that there was no evidence that the claimants’ appointments were subject to ministerial control or approval.
He emphasised that the OAUTHC Management Board is a statutory body established by law and must exercise its powers within the limits prescribed by legislation.
The court further held that internal administrative errors could not be used to penalise employees who were not responsible for such actions.
Justice Peters also ruled that the Minister of Health and Social Welfare lacked the statutory authority to discipline or terminate employees of the teaching hospital’s management board.
Consequently, he declared the circular dated 31 January 2024, together with the purported cancellation of the appointments of the 108 employees, “unlawful, null and void.”
The judgment is expected to have significant implications for employment governance within federal health institutions and reinforces the principle that statutory employment procedures must be strictly followed when taking disciplinary or administrative action affecting workers.
