The National Industrial Court of Nigeria, Lagos Division, presided over by Hon. Justice R.H. Gwandu, has ruled in favour of nine former employees of Fidelity Bank Plc, ordering the bank to pay a total sum of N163,831,276.14 in retirement benefits and entitlements.
The judgment was delivered on May 6, 2025, in Suit No. NICN/LA/293/2017, brought by 11 claimants who served Fidelity Bank for over 15 years but were allegedly denied their rightful benefits due to an outsourcing arrangement by the bank.
The claimants contended that despite serving the bank continuously for over 15 years, they were not formally recognized as employees but were engaged via third-party contractors. They sought enforcement of their retirement benefits based on Fidelity Bank’s Personnel Policies and Procedures.
The defendant, Fidelity Bank Plc, denied direct employment of some claimants and claimed the new retirement policy introduced in December 2016 was applicable, thus negating liability.
Justice Gwandu found that the bank effectively employed the claimants for extended periods and was responsible for their benefits.
The court held that: “The Defendant will not be allowed to blow hot and cold at its whims.”
The court specifically rejected Fidelity Bank’s argument regarding the 10th claimant’s employment status, noting:
“The Defendant is estopped from denying the 10th Claimant was not its employee,” referencing letters of employment and recognition issued to him.
Regarding the introduction of a new retirement policy in 2016, the court ruled that:
“The Defendant cannot apply the new policy retrospectively to deny accrued rights.”
The requirement of “15 unbroken years” of service was upheld, with the court noting that no evidence was presented to prove any breaks in service.
The court ordered the Bank to pay the claimants various sums, totaling N163,831,276.14, reflecting the bank’s failure to fulfill retirement obligations.
The court ordered Fidelity Bank to pay the following amounts to the claimants:
The first claimant was awarded 22,000,000.00, 2nd claimant was 25,000,000.00, 3rd claimant-9,867,445.70, 4th claimant 34,145,736.71 and 5th claimant 15,390,234.43.
Other claimant from 6th-9th were awarded the sum of 22,423,859.30, 3,572,000.00 and 26,181,000.00 respectively.
The court also ordered post-judgment interest at 10% per annum to commence if the bank delays payment beyond one month from judgment.
Meanwhile , the court rejected claims for general damages totaling ₦150 million, finding insufficient evidence of special damages.
Claims for illegal deductions and other reliefs were also dismissed.
This judgment reinforces that employers cannot evade responsibilities by outsourcing staff employment.
Justice Gwandu emphasized that: “Employers who benefit from long service must honor their obligations regardless of third-party arrangements.”