Industrial Court Orders Ex-DMO Staff to Refund ₦4.49M for Breach of Contract After Political Appointment, Awards ₦2.6M in Unpaid Salary
The National Industrial Court in Abuja has ruled that Mr. Obinn must pay the Debt Management Office (DMO) the sum of ₦4,491,269.32, representing three months’ salary in lieu of notice and a refund of his May 2024 salary. This ruling came after a dispute regarding the termination of Mr. Obinn’s employment following his acceptance of a political appointment.
Presiding over the matter, Hon. Justice Osatohanmwen Obaseki-Osaghae held that Mr. Obinn’s appointment as a Commissioner did not nullify his contractual obligations to the DMO. The Court found that he failed to provide the mandatory three months’ notice or make payment in lieu of notice as required by his contract.
Mr. Obinn had argued that, based on the Public Service Rules and DMO’s internal policies, his appointment to political office constituted an automatic resignation, eliminating the need for notice or payment. He also claimed the DMO wrongfully withheld his salary from January 22 to March 31, 2024.
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In response, the DMO argued that Mr. Obinn failed to follow proper resignation procedures and was, therefore, in breach of his employment contract. Their counsel urged the court to dismiss his claims.
After reviewing the submissions, the Court disagreed with Mr. Obinn’s interpretation of the rules. Justice Obaseki-Osaghae clarified that resignation and leave applications are distinctly handled under the Public Service Rules, and a political appointment does not exempt an employee from the notice requirement.
Nevertheless, the Court ruled that Mr. Obinn is entitled to his unpaid salary arrears for the period of January 22 to March 31, 2024, amounting to ₦2,607,834.61. As a result, while he must refund ₦4.49 million to the DMO, the agency is also ordered to pay him ₦2.6 million in salary arrears.
In conclusion, the Court ordered that each party bear its own legal costs.
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