In a landmark decision, Hon. Justice Isaac Essien, PhD, of the Lagos Judicial Division of the National Industrial Court, held that the disengagement of Mr. Biekpi Uwe from the Nigerian Security Printing and Minting (NSPM) at age 57, after 20 years of service, was wrongful, unconstitutional, void, and in violation of the ILO Termination of Employment Convention.
The Court found that the employer’s justification “services no longer required”—was a flimsy excuse that failed to meet the threshold of valid termination under Nigerian labour law and international labour standards. Justice Essien ruled that Mr. Uwe’s disengagement deprived him of his legitimate expectation of earnings up to retirement, and accordingly converted the termination into compulsory retirement with full benefits under the NSPM Employee Handbook.
The Court awarded the sum of ₦27.3 million for loss of earnings up to retirement, ₦23.36 million as exit incentive package, ₦292,234 for unremitted pension contributions with statutory interest, and ₦40 million as exemplary damages, alongside ₦5 million as costs of action in favour of Mr Uwe.
Additionally, NSPM was ordered to issue an exit clearance letter within seven days to enable Mr. Uwe access his retirement savings account. All sums awarded attract post‑judgment interest until fully paid.
The claimant, Mr. Uwe argued that NSPM, being a federal government agency, falls within the public service structure under Section 318(1) of the 1999 Constitution, entitling him to security of tenure. He maintained that termination without just cause violated his constitutional and contractual rights, and sought equitable conversion of the disengagement into compulsory retirement.
In defence, NSPM contended that the employment was contractual, lawfully terminated with salary in lieu of notice, and that Mr. Uwe was liable to refund unearned allowances. They also relied on prior disciplinary records to justify termination.
In opposition, counsel for Mr. Uwe argued that prior misconduct was irrelevant since disciplinary sanctions had already been served, and misconduct was not cited in the termination letter.
Delivering judgment, Justice Essien held that NSPM, as a government‑owned entity, is part of the public service, entitling employees to pensionable tenure. The termination did not comply with the Employee Handbook or recognized grounds for valid termination under employment law.
The court held that reliance on prior disciplinary records was irrelevant, as misconduct was not alleged in the disengagement letter, and refused the claim payment of salary in lieu of notice could not cure the illegality of the termination.
The Court concluded that the appropriate remedy was damages based on expected earnings up to retirement, not mere notice pay.
… Industrial Court Declares Termination of NSPM Staff Unlawful, Awards Over ₦96 Million in Damages … Naijaonpoint.
