The National Industrial Court has mandated the Attorney-General of Rivers State to calculate and disburse the benefits, entitlements, and salary arrears to the retrenched and reinstated staff of the Internal Revenue and Computer Department of the Ministry of Finance and Economic Planning, Rivers State.
Justice Zaynab Bashir from the Portharcourt Judicial Division gave the order on Friday.
The court further awarded a compensation of N3,000,000.00 (three million naira) to each staff as redress for the hardship endured due to the withholding of their salary arrears during the period of service interruption between 1995 to 1999.
The court emphasized that, as per the Committee’s report on the Retrenchment Review, approved by the Rivers State Governor, it is mandatory for the Attorney-General to fulfill these financial obligations to the affected staff.
Background
E. W. Assaye and 142 others, the claimants, asserted that they were wrongfully retired and subsequently reinstated in 1995.
However, despite the condition set upon their reinstatement, which mandated payment of all salary arrears, benefits, and entitlements, they faced unfruitful attempts to receive the owed amounts.
Counsel asserted that Assaye and the others are entitled to N23,337,337.62 in benefits and salary arrears, along with compensation totaling N855,769,670.02, calculated with interest at the Central Bank of Nigeria’s yearly lending rate for the period 1999-2020.
In response, the defendant, the Attorney-General of Rivers State, contended that there is no connection between the 143 claimants and the Committee’s findings.
The Attorney-General argued that the claimants failed to demonstrate inclusion in the Committee’s report covering the retired staff.
The defence emphasized the absence of evidence proving that the claimants were part of individuals whose salaries, entitlements, or benefits were unpaid from 1995 to 1999.
Additionally, the Attorney-General urged the court to dismiss the case for lack of jurisdiction, asserting that the cause of action arose in 2001, and the filing of the originating processes occurred on March 25, 2021—more than five years after the cause of action, contrary to Section 16 of the Limitation Law (Cap 80) Laws of Rivers State of Nigeria 1999.
In response to the jurisdictional objection, the Claimants’ Counsel argued that the Rivers State Limitation Law does not apply to labor-related matters, as it falls under the Exclusive Legislative List.
Consequently, The counsel urged the court to dismiss the objection in its entirety.
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Court’s decision
After a thorough review of both parties’ submissions, Justice Zainab Bashir, the presiding judge, determined that labor disputes related to salaries or compensation for work performed are not subject to limitation laws.
The court affirmed that the ongoing suit is not barred by statute, and the court has the proper jurisdiction to address it.
The court emphasized that the standard of proof in civil cases relies on the preponderance of evidence.
As the Attorney-General failed to present a contrary roster of employment for the staff of the defendant who were retrenched or retired and recommended for recall, the court will rely on the accounts of the identified Assaye and 142 others as employees of the Defendant.
Justice Zaynab confirmed that other evidence presented in court, including exhibits RS3, RS12, and RS15, supports the fact that the Defendant’s staff were retrenched and reinstated without receiving arrears of salaries.
The court asserted that upon the nullification of termination and the reinstatement of an employee, such an employee is entitled to arrears of salaries.