The National Industrial Court (NIC) in Ibadan has ordered Prestrest Ltd to pay 35 of its retired staff N34 million as terminal benefits owed between 2003 and 2010.
The presiding judge, Justice Hassan Yakubu, ruled that the retirees provided proof that their former company owed them, in accordance with the rule of law governing the labor sector.
The judgment was published on the NIC website on August 21, 2024.
Applicants’ Case
Terminal benefits refer to the gratuity, pension, and other benefits due to a personnel or pensioner.
The legal team representing the claimants—Mr. Aboluwarin Olusegun and two others (who sued on behalf of themselves and 32 other retired staff of Prestrest Ltd)—approached the court, insisting that they were retired staff of the company.
They claimed they were properly disengaged by the firm in 2011 but were not fully paid their terminal benefits.
They contended that “due to non-payment of their terminal benefits, an agreement was reached at the instance of the Federal Ministry of Labour and Productivity through the Ogun State Controller in 2012.”
According to the claimants, the agreement reached was that the aggregate sum owed to them by the firm was N31,991,386.11.
They further argued that the sum of N6,751,641.66 was paid in the first installment, but all efforts to obtain their balance proved abortive.
“Prestrest Ltd and four others failed to remit the contributory pension deducted from their salaries for seven years and seven months, from 2003 to 2010, totaling the sum of N9,000,000.00 (Nine Million Naira Only),” the claimants’ legal team added, urging the court to grant their request.
According to the court judgment, the defendants—Prestrest Ltd and four others—failed to defend the suit as they sent no legal representation throughout the proceedings.
What the Judge Said
Passing verdict on the case, Justice Yakubu held that based on the written agreement dated the 17th day of July 2012 and signed by Prestrest Ltd and four others, the company contravened relevant laws by refusing to pay the balance of the 35 retirees’ terminal benefits.
The judge stated that although the failure of the defendants to defend the case does not absolve the retirees from proving their case, they have convinced the court through the content of the agreement they tendered as evidence, which was freely signed by the parties in accordance with the rule of law.
The court subsequently ordered “Prestrest Ltd and four others to pay Mr. Aboluwarin Olusegun and 34 other retired staff the sum of N25,239,744.45 as the outstanding balance of their retirement benefits, and the sum of N9,000,000.00 as contributory pensions deducted from their salaries for seven years and seven months, from 2003 to 2010.”
The Court stressed “that Prestrest Ltd and four others are mandated by the Pension Reform Act to remit the contributory pensions deducted for seven years and seven months, from 2003 to 2010, from the salaries of Mr. Aboluwarin Olusegun and 34 others, totaling the sum of N9,000,000.00, to the claimants’ Retirement Savings Account (RSA).”
More Insights
The National Industrial Court of Nigeria is a judicial institution established in 1976 to preside over issues relating to the Trade Disputes Act. It has jurisdiction over labor issues, civil matters, child trafficking, employment issues, entitlements/allowances, and sexual harassment in the workplace.
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