Court Slams Lagos School, Awards Teacher N4.4m for 27-Year Gratuity Denial

The National Industrial Court sitting in Lagos has condemned the conduct of a Lagos Private School, for unlawfully denying a teacher her gratuity after 27 years of service, ordering the school to pay a total of N4.4 million in compensation.

In a judgement delivered by Hon. Justice Joyce A. O. Damachi, the court awarded Mrs Anniette N1.9 million as gratuity, N2 million as general damages, and N00,000 as cost of action, describing the school’s actions as unfair and inconsistent with basic principles of labour justice.

The court held that employers who have consistently operated under a condition of service over a long period, cannot turn around to repudiate those same conditions when it becomes inconvenient. Justice Damachi stressed that an employment contract need not be signed to be binding, where both parties have acted on its terms.

Evidence before the court showed that Mrs Anniette was employed as a teacher in 1992, had her appointment confirmed in 1994, and served the school diligently until her employment was terminated in November 2021.

Mrs Anniette told the court that under the School’s Conditions of Service, employees who had served for 16 years and above were entitled to full gratuity. She said the School refused to pay her terminal benefits despite repeated demands, forcing her to seek judicial intervention.

The court also faulted the School’s claim that gratuity was discontinued following the Pension Reform Act 2004, noting that evidence showed other employees disengaged after 2005 were paid gratuity. Justice Damachi held that employers cannot selectively apply workplace policies, to deny workers their lawful entitlements. In dismissing the School’s defence, the court described its attempt to rely on parts of the Conditions of Service while rejecting others, as inequitable and contrary to fair labour practice.

Justice Damachi ordered the school to pay the awarded sums within 30 days, warning that failure to comply would attract post-judgement interest at the rate of 10% per annum – a decision widely seen as a strong message against the exploitation of long-serving workers.