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The Presiding Judge, Minna Judicial Division of the National Industrial Court. Hon. Justice Olufunke Anuwe has declared the NECO Staff School as an employer within the meaning of the Employees' Compensation Act.
The Court held that NECO Staff School is obligated to make a minimum monthly contribution of 1% of its total monthly payroll from July 2011 up to date and thereafter into the Employees' Compensation Fund managed by the Nigeria Social Insurance Trust Fund Management Board.
Justice Anuwe ordered the NECO Staff School to compute the monthly contribution of 1% of its total monthly payroll from July 2011 up to date and pay into the Employees' Compensation Fund managed by the Nigeria Social Insurance Trust Fund Management Board.
From facts, the claimant- Nigeria Social Insurance Trust Fund Management Board had asked for determination considering the extant provisions of Sections 33 (l) and 73 of the Employees' Compensation Act 2010, whether the NECO Staff School is an employer within the meaning of the Employees' Compensation Act, 2010 and by so doing obligated to make a minimum monthly contribution of 1.0 percent of her total monthly payroll into the Employees' Compensation Fund established under the Act and managed by the NECO Staff School?
Nigeria Social Insurance Trust Fund Management Board averred that upon the commencement of the Employees' Compensation Act, 2010, the board held a meeting with the Nigeria Labour Congress and Nigeria Employers Consultative Association where it was agreed that payment by employers of contributions into the Employees' Compensation Fund as prescribed by the Act should commence in July 2011.
The Board maintained that the NECO Staff School is under a statutory obligation pursuant to Section 33 (l) of the Employees' Compensation Act, 2010 to make a minimum monthly contribution of 1 percent of his total monthly payroll into the Employees' Compensation Fund managed by the Board, and where the NECO Staff School does not comply with any of the provisions of the Act, it is be liable to imprisonment or fine or both imprisonment and fine.
However, the defendant- NECO Staff School failed to put up any appearance and did not file any process in defence of the case despite being served with the Court process.
In a well-considered judgment, the Presiding Judge, Justice Olufunke Anuwe held that by the above provisions of the Employees' Compensation Act, the Law applies to all employers in both public and private sectors and one of the applicable provisions of the Employees' Compensation Act to employers is the obligation to make a minimum monthly contribution of 1% of the total monthly payroll into the Employees Compensation Fund.
The Court stated that for the provisions of the Act to be enforced against any person or organization, it has to be established first that the person or organization is an employer within the meaning of the Act, and such an employer is bound to comply with the provisions of the ECA with regards to payment of minimum monthly contribution of 1% of the total monthly payroll into the Employees Compensation Fund (ECF).
Justice Anuwe affirmed that the NECO Staff School is an employer within the meaning of the term in section 73 of the ECA, and is under a statutory obligation to comply with the provisions of Section 33 (1) of the ECA which require every employer to make monthly contribution of 1% of its total monthly payroll into the ECF.
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