PENCOM fined N10m over unfair labour practice

The court allowed an appeal filed by the workers, led by Ismalia Gizali, and set aside the June 13, 2023, judgment of the National Industrial Court of Nigeria (NICN), Abuja, in suit NICN/ABJ/188/2022.

The appellants had told the NICN that after undergoing interviews and receiving employment letters, they resumed duty on May 2, 2017, but were neither assigned responsibilities nor paid salaries. They added that PENCOM asked them to resign from their previous jobs and later directed them to await further instructions, which never came.

The NICN had earlier ruled in favour of PENCOM and its chairman, holding that no valid employment contract existed between the parties.

Dissatisfied, the workers appealed the court’s verdict.

In its March 6 judgment,  the Court of Appeal held that a valid employment relationship existed.

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Justice Oyejoju Oyewumi, who delivered the lead judgment, rejected PENCOM’s claim that the employment was conditional and, therefore, inchoate.

“There is nothing in the offer of employment letter to support the respondents’ assertion,” she said, adding that the letters clearly established a probationary employment relationship for six months.

The judge held that the recruitment process, which included aptitude tests, interviews, and issuance of employment letters, confirmed the existence of a valid employment relationship once the offers were accepted.

“The respondents should not be allowed to take advantage of the appellants by withholding or frustrating their employment while giving them the impression they would be called upon at a later date,” she said.

Justice Oyewumi averred that the appellants relied on the employment offers and resigned from their previous jobs to their detriment, adding that PENCOM was estopped from denying the employment relationship.

“One thing is certain and that is the fact that the action of the respondents was an unfair labour practice, breach of contract of employment and violation of the appellants’ expectation rights, for which they are entitled to damages and costs,” she held.

The court consequently set aside the NICN judgment and awarded N10 million costs against PENCOM and its chairman for subjecting the appellants to “unnecessary and unwarranted rigours of litigation since 2022”.