Court declares Voyage Hotels is under legal duty to make monthly contribution to NSITF

Hon. Justice Zaynab Bashir of the Portharcourt Judicial division of the National Industrial Court has declared that Voyage Bolton Hotels is an employer within the meaning of the Employees’ Compensation Act and is under a legal duty to make a monthly contribution of 1.0 per cent of the total monthly payroll into the Nigeria Social Insurance Trust Fund Management Board.

The Court ruled that where Voyage Bolton Hotels fails to furnish the Nigeria Social Insurance Trust Fund Management Board with an estimate of the probable amount on its payroll, the hotel is liable to pay penalty for the default, a percentage to be assessed by the board.

Justice Zaynab granted an order compelling the Voyage Bolton Hotels to compute/calculate and make a minimum monthly contribution of 1.0 percent of its total monthly payroll from when it became an employer of labour till Date and thereafter into the Employees’ Compensation Fund managed by the NSITF within 30 days.

From facts, the claimant- Nigeria Social Insurance Trust Fund Management Board had asked amongst others for a determination considering the extant provisions of the Employees’ Compensation Act, whether the Voyage Hotels is an employer within the meaning of the Employees’ Compensation Act, 2010 and being so, comes under the scope of application of the said Act.

The counsel to the defendant argued that the hotel has only three staff, the Nigeria Social Insurance Trust Fund Act is not applicable to employers like the Defendant and it is the duty of the Court to give effect by holding that the hotel should not be part of the Employees Compensation Scheme.

In opposition, Counsel to NSITF, Adaeze Gozie-Nwaoha with Jennifer Mbunabofor submitted that Voyage Hotel is an employer within the meaning of the Employees’ Compensation Act and is mandatorily required to make a minimum monthly contribution of 1.0 percent of its total monthly payroll into the Employees’ Compensation Fund, and urged the court to grant the reliefs sought.

In its well-considered judgment, the presiding judge, Justice Zaynab Bashir held that the Employees’ Compensation Act applies to all employers and employees in the public and private sectors in the Federal Republic of Nigeria, and Nigeria Social Insurance Trust Fund Management Board counsel was right when he stated that Section 33(1) of the Act makes provision for the 1.0 per cent of the total monthly payroll of the employees to be paid into the Fund of the Board.

Justice Zaynab held that the alleged 2 student staff of the Voyage Bolton Hotels though casual staff are still staff of the hotel subject to the interpretation of the Employees Compensation Act and consequently, the Employees Compensation Act is applicable to Voyage Bolton Hotels.

The court declared that it is the duty of Voyage Bolton Hotels to comply with the provision of the Employee’s Compensation Act 2010 by furnishing the Board with the necessary requirements as stated by the Act with no option of whether or not to comply.