March 29, 2026

Relief for Stranded Workers as Appeal Court Faults PenCom, Awards N10m for Years of Neglect

By Deborah Bodunde

The Court of Appeal, Abuja Division, has set aside the judgment of the National Industrial Court of Nigeria and awarded N10 million in costs against the National Pension Commission (PenCom) over unlawful labour practices affecting 20 workers.

In a unanimous decision in appeal number CA/ABJ/CV/830/2024, a three-member panel led by Justice Bilkisu Bello Aliyu, with Justices Donatus Okorowa and Oyejoju Oyewumi concurring, held that the appeal filed by the workers was meritorious.

Delivering the lead judgment, Justice Oyewumi nullified the ruling of the lower court delivered on 13 June 2023, which had dismissed the workers’ claims.

The dispute arose after the 20 workers, who were issued employment letters by PenCom and resumed duty on 2 May 2017, were neither deployed nor assigned roles, and were left without salaries.

According to court documents, the workers were instructed to “tarry” for further directives upon resumption; however, no additional instructions were issued for years, despite repeated correspondence with the commission.

The appellants told the court that they had resigned from their previous employment based on PenCom’s offer, only to be left without remuneration, responsibilities, or clarity regarding their employment status.

Arguing through their counsel, Samuel Ogala of Falana & Falana Chambers, the workers maintained that PenCom could not frustrate the performance of employment conditions and benefit from its own inaction.

The appellate court held that the recruitment process — including advertisement, interviews, and the issuance of employment letters duly accepted by the workers — constituted a valid and binding contract.

It ruled that the established contractual relationship imposed legal obligations on PenCom, noting that the workers’ prolonged ordeal was unjustifiable.

“The appeal succeeds,” the court held, setting aside the earlier judgment and awarding N10 million against the commission for the “unnecessary and unwarranted rigours of litigation” endured by the workers since 2022.

In the originating suit marked NIC/ABJ/188/2022, the workers had accused PenCom of unfair labour practices, including the non-payment of salaries, denial of promotions, and restrictions on the performance of their duties.

They sought declarations affirming their status as employees under the Pension Reform Act 2014 and the Public Service Rules, as well as orders compelling the payment of outstanding salaries, allowances, and other entitlements.

The claimants also requested protection from alleged harassment and an injunction restraining the commission from further obstructing their employment.

 

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