The National Industrial Court in Lagos has ordered NICON Insurance Limited to refund salary deductions made from three former employees and remit outstanding pension contributions into their retirement accounts.
Justice Anthonia Ubaka directed the company to refund ₦317,000, ₦706,000 and ₦263,000 respectively to the three claimants. The court also awarded ₦1 million as costs and required compliance within 30 days.
The former employees told the court that pension contributions were deducted from their salaries during their employment but were not fully transferred to their Pension Fund Administrators. They also relied on the company’s Staff Handbook in support of their claim to contributory retirement benefits.
NICON Insurance did not enter an appearance or file a defence despite service of the court processes. The claimants’ oral and documentary evidence therefore remained unchallenged.
In its judgment, the court found that the employment relationship and the disputed deductions had been established through the documents presented. It held that the company failed to comply with its pension obligations under the Pension Reform Act 2014 and its internal employment terms.
The court further held that the salary deductions were not supported by any applicable contractual provision and ordered the company to settle the refunds and pension liabilities within the stipulated period.
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