Appeal Court Slams N10m Fine on PenCom Over Stranded Staff

The Court of Appeal in Abuja has overturned a lower court’s decision, awarding ₦10 million in costs against the National Pension Commission (PenCom) for “unlawful labour practices.” A three-member panel, led by Justice Bilkisu Bello Aliyu, ruled that PenCom’s treatment of 20 aggrieved workers was unjustifiable. The workers were officially hired in 2017 but left in professional limbo for years without deployment or pay. This unanimous judgment sets aside a 2023 National Industrial Court ruling that had previously dismissed the employees’ claims.

The ordeal began on May 2, 2017, when the 20 recruits resumed duty following a formal hiring process. Instead of receiving assignments, they were told to “tarry” for further instructions. These instructions never came. Despite repeated correspondence over several years, the Commission failed to assign them roles or pay their salaries. Most of the appellants had resigned from previous jobs to join PenCom, only to find themselves stranded without income or clarity on their status.

Justice Oyebisi Omoleye Oyewumi, who delivered the lead judgment, held that a valid and binding contract existed. The court noted that the cycle of advertisements, interviews, and the issuance of accepted employment letters created a legal obligation. Because the facts of the recruitment were admitted by both parties, the court ruled that no further proof of employment was needed. The judges rebuked PenCom for attempting to benefit from its own inaction by frustrating the performance of the employment conditions.

The appellate court was particularly scathing regarding the “unnecessary and unwarranted rigours of litigation” the workers endured since filing their suit in 2022. The ₦10 million award serves as a penalty for the prolonged hardship caused by the Commission’s administrative negligence. The workers’ counsel, Samuel Ogala of Falana & Falana chambers, argued successfully that the Commission could not legally ignore its own staff while they remained under a valid contract.

In their original suit, the workers sought more than just a declaration of their status. They demanded the payment of all outstanding salaries, arrears, and allowances dating back to May 2017, calculated using PenCom’s standard salary structure. They also sought immediate promotions to the positions they would have reached had they been allowed to work. The Appeal Court’s decision to allow the appeal paves the way for the enforcement of these financial and professional entitlements under the Pension Reform Act 2014.

This ruling sends a sharp warning to government agencies regarding “unfair labour practices” and the mistreatment of recruits. By affirming the workers’ status as employees under the Public Service Rules, the court has effectively barred PenCom from further obstructing their duties. The Commission must now reconcile its books and its workforce to accommodate the 20 individuals it tried to forget.