Emmanuel Thomas l Friday, Dec.19.25
AWKA – A National Industrial Court sitting in Awka has ordered Divine Rays British School Limited, Obosi, to immediately register with the Nigeria Social Insurance Trust Fund (NSITF) and remit eight years’ worth of statutory contributions for its employees.
The presiding judge, Justice J.I. Targema, PhD, in a landmark judgment delivered on December 5, 2024, dismissed the school’s argument that it was a “charitable missionary institution” exempt from the Employees’ Compensation Act (ECA) 2010.
The NSITF Management Board had dragged the school to court via an Originating Summons filed in July 2024, seeking the interpretation of the ECA 2010.
The Fund alleged that since the school’s incorporation in May 2017, it had failed to:
Register with the Employees’
Compensation Scheme.
Furnish its payroll records for assessment.
Remit the mandatory 1% monthly contribution of its total payroll into the Fund.
The school, through its counsel, E.S. Ejimofor, Esq., raised a preliminary objection, arguing that the suit was “statute-barred” and “premature.”
The defense further claimed that the school did not maintain a payroll as its staff were allegedly paid by the Parents-Teachers Association (PTA) and the Federal Government (for NYSC members).
Court’s Ruling on Status and Jurisdiction
Dismissing the school’s objections, Justice Targema held that the definition of an “employer” under Section 73 of the ECA is broad and inclusive.
”The law does not make a distinction based on the source of payment of salaries or whether the organization operates for profit; the critical element is the existence of a work relationship,” the Judge ruled.
The court further clarified that the failure to remit monthly contributions is a “continuing breach.”
Therefore, the school could not hide under the Public Officers Protection Act or any limitation law to evade its statutory duties.
The court granted most of the reliefs sought by the NSITF but declined to award a 40% penalty and 10% interest, noting that the Act did not provide a fixed percentage for such penalties.
The Court ordered as follows:
Mandatory Registration: The school must register with the Employees’ Compensation Scheme within 30 days.
Payroll Disclosure: The school is to furnish full and accurate payroll records from May 2017 to the present date.
Backlog Payment: The school must remit the assessed 1% of its total monthly payroll for the entire period in default.
Right of Inspection: NSITF officers are empowered to enter the school premises to inspect records for compliance.
Legal Costs: The court awarded N250,000 in costs against the school in favor of the NSITF.
