The Lagos division of the National Industrial Court has ordered Arik Air Limited and Asset Management Corporation of Nigeria to remit the complete monthly pension contributions of Mr. Kalu Sylvester into his pension fund account.
Justice Maureen Esowe gave the order on Monday following a suit filled by Mr. Kalu in 2018 through his counsel, Dr. Iwowo Anthony, Esq.
The judge held that Mr. Kalu has proved his case as required by law. Consequently, she declared that Arik Air’s failure to remit his complete monthly pension contributions is unlawful, illegal, and in clear breach of his contract of employment.
Consequently, she ordered Arik and AMCON to pay the sum of N4,302,450.00 to Mr. Kalu being his complete pension for the entire period of his employment with the Arik Air.
Background
While accounting to the court, Mr Kalu said he was a staff member of Arik Air between 2010 to 2015.
He said he resigned in 2015 and had given the company 1-month notice of his intention to resign.
However, the company denied him payment of N155,000, one month’s salary in lieu, N580,000, his allowance package, and also failed to remit his pension to the pension fund.
He told the court that throughout his 5 years work time, the company only remitted, October 2011, February 2012, January and February 2013 pension contribution.
In its defense, Arik Air Limited argued that Mr. Kalu breached his employment contract and, so not entitled to November 2015 salary and the salary in lieu of notice.
They asserted that he lacked entitlement because the firm did not terminated his employment.
They averred that AMCON is not a proper party to the suit as the applicant did not disclose any cause of action against AMCON.
consequently, they parted the court to resolve all issues in their favour and dismiss Mr. Kalu’s case for lack of proof.
In response, Mr. Kalu’s Counsel contended that an employer who deducts funds from an employee’s monthly salary for the purposes of contributory pension is duty bound to remit the fund to the pension manager of the employee.
He prayed the Court to grant all the reliefs sought in the interest of justice.
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Court’s decision
In her judgement, Justice Esowe held that the applicant has proved his case as required by law, consequently she granted reliefs sought.
The Court held that AMCON is a proper party in the suit as it is a party by implication, and also a party for the purpose of enforcing the judgement of the Court given the facts of this case.
The Court also ordered Arik Air and AMCON to pay Mr. Kalu the sum of N735,820 unpaid salary, and total allowance for the month of November 2015.
She also ordered them to immediately remit the complete monthly pension contributions of Mr. Kalu Sylvester.
She said ”The court here declares that the 1st Defendant’s failure to immediately transfer/remit total/complete/absolute monthly pension contributions of the Claimant for the entire period of his employment with the 1st Defendant into his Retirement Saving Account with his Pension Fund Administrators being Stanbic Pension Managers to the tune of N4,302,450.00 is unlawful, illegal, and same is in clear breach of his contract of employment.
“An order directing and mandating the Defendants to immediately transfer/remit total/complete/absolute monthly pension contributions of the Claimant for the entire period of his employment with the 1st Defendant into his Retirement Saving Account with his Pension Fund Administrators being Stanbic Pension Managers to the tune of N4,302,450.00.
“ The court hereby orders that the Defendants to pay the Claimant the sum of N155,000.00 being unpaid salary for the month for the month of November 2015.
“The court hereby orders the Defendants to pay the Claimant the sum of N580,820.00 being unpaid total allowance for the month of November 2015.” The court ruled.