October 25, 2025

Court Slams CAC, Orders N7m Payout to Former Staff Over Withheld Promotion

The National Industrial Court in Abuja has ruled against the Corporate Affairs Commission (CAC) and its Registrar-General in a labour dispute, declaring their refusal to pay Dr. Ogunlade his promotion entitlements an act of unfair labour practice.

Delivering judgment, Hon. Justice Emmanuel Subilim held that the Commission must pay arrears covering 1 January 2022 to 19 December 2022, the period during which Ogunlade served as Assistant Director before resigning.

Justice Subilim further ordered the CAC and its Registrar-General to compute and pay Ogunlade’s promotion arrears, gratuity, and pension for the period, in line with the Commission’s manuals.

The Court’s Chief Registrar was appointed referee to oversee the computation. In addition, the judge awarded N7 million in general damages and N300,000 as cost of action against the defendants.

According to court filings, Ogunlade participated in a promotion exercise that elevated him to Assistant Director with effect from 1 January 2022. He told the Court that although the promotion letter was delayed until after his resignation, he had served in the role, while his colleagues in similar positions were paid their benefits before leaving the Commission.

Ogunlade said he repeatedly requested his arrears and benefits, but the Commission failed to respond, compelling him to approach the Court.

In defence, the CAC and the Registrar-General argued that since Ogunlade resigned on 19 December 2022 and his promotion letter was issued afterwards, the promotion was invalid. They maintained that no rules or laws had been breached and asked the Court to dismiss the case, describing it as “speculative, vexatious, and irritating.”

However, Ogunlade’s counsel countered that the Commission had already enjoyed his service as an Assistant Director and could not lawfully deny him the entitlements attached to the position. He stressed that the CAC neither withdrew the promotion nor challenged his eligibility, and was therefore bound to honour it.

The Commission, in reply, insisted the promotion letter had been issued in error and could not confer rights on Ogunlade, urging the Court to throw out the claim.

But Justice Subilim dismissed this defence, holding that the promotion letter was valid and binding. He noted:
“Dr. Ogunlade had done all that it takes to be promoted, but due to bureaucratic bottleneck, the promotion was delayed. The carelessness of the CAC cannot be visited on him.”

Describing the Commission’s conduct as “detestable” and an unfair labour practice, the judge said the CAC had failed to explain why Ogunlade was denied benefits already extended to his colleagues.

Justice Subilim concluded that Ogunlade remained entitled to all arrears due before his resignation and ordered the Commission to make full payment.

 

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