A Court of Appeal in Lagos has ruled that the Federal Government of Nigeria must pay Mr. Nnabuihe Onyebueke all his withheld salaries and employment benefits for nearly 15 years. The appellate court's judgment overturned a previous decision by the National Industrial Court (NIC). Onyebueke's salary was stopped in 2003, but the court found that this did not constitute dismissal, termination, or suspension of his employment.
According to the facts of the case, Onyebueke was employed into the Federal Civil Service in 1983 and posted to the Federal Ministry of Works and Housing. In 2002, he developed a mental health condition that prevented him from participating in a compulsory staff verification exercise. Although his employer was informed of his condition, his salary was stopped in December 2003, and he was classified as a "ghost worker." However, there was no formal termination or suspension of his employment.
The records before the court showed that Onyebueke remained on the establishment of the Federal Civil Service and completed 35 years in service before retiring in May 2018. He then approached the NIC in 2021, seeking payment of his outstanding salaries, leave bonuses, gratuity, and pension benefits. The trial court dismissed the action, citing that it was statute-barred, as the cause of action arose when Onyebueke's salary was stopped in December 2003.
Onyebueke appealed the decision to the Court of Appeal, challenging the finding that his claims were statute-barred. The appellate court disagreed with the NIC's position, holding that the stoppage of Onyebueke's salary did not bring his employment relationship with the Federal Government to an end. The court distinguished between non-payment of salary and the legal acts necessary to terminate or suspend an employment relationship.
The court held that where an employer has neither terminated nor suspended an employee in accordance with the applicable conditions of service, the mere withholding of salary cannot convert the employee into a former employee. This meant that Onyebueke continued to be in the service of the Federal Government until his retirement in May 2018. The court also considered the effect of Onyebueke's mental health condition on the limitation issue.
The appellate court ruled that mental ill-health, in the circumstances established before the court, constituted a legal disability capable of preventing the limitation period from operating against Onyebueke. The court rejected the contention that the passage of time between the stoppage of his salary in 2003 and the commencement of his action in 2021 automatically extinguished his right to seek redress.
The appellate court set aside the judgment of the National Industrial Court and ordered the Federal Government to pay Onyebueke his withheld salaries covering the period from December 2003 to May 2018, when he retired from the Federal Civil Service. The court also directed the payment of his full leave bonuses, gratuity, and pension entitlements arising from his employment.
Key points
- The Court of Appeal ruled that the stoppage of an employee's salary cannot, in itself, be construed as dismissal, termination, or suspension of their employment.
- Onyebueke's mental health condition was considered a legal disability that prevented the limitation period from operating against him.
- The Federal Government was ordered to pay Onyebueke his withheld salaries and benefits, totaling 15 years of unpaid remuneration.
