LIMITATION LAW — Public Authorities Protection — Contract of Employment — Application of Statutory Limitation to Master and Servant Relationship
Principle Statement
A public authority, such as a statutory corporation, has the power to enter into contracts of employment with its servants. Where the enabling statute provides a specific limitation period for actions against the authority, that limitation applies to claims arising from such contracts of employment.
Ratio Decidendi (Source)
Per Chukwuma-Eneh, JSC, in Bakare v. NRC (2007) NLC-123-51-2002(SC)akare v. NRC (2007) NLC-123-51-2002(SC) at pp. 19–20; Paras D–A.
"What has emerged from a community reading of the three provisions, that is, of Section 83(1), along with Section 17(2)(g)(ii) and Section 48, if I may recall, makes it abundantly clear the respondent has the power to enter into agreements with any person for the performance by that person of any services, duties, facilities being performed by the respondent. It can also make rules and regulations on the general conditions of service of its servants. There can be no doubt therefore, that it has the power to enter into a contract of employment and did so enter here, the breach of which is the object of this action. By the averment in paragraphs 6 and 7 of the Statement of claim and supported by evidence given at the trial court the instant contract of employment is undeniably governed by Section 83(1) of the NRC Act."
Explanation / Scope
The principle clarifies that statutory corporations, like the Nigerian Railway Corporation, are not immune from employment contracts. Their enabling Acts typically confer powers to engage staff and make regulations. Where such an Act contains a special limitation provision for actions against the corporation (e.g., Section 83(1) of the NRC Act), that provision governs claims by employees for breach of their employment contracts. The general limitation laws do not apply where a specific statute provides its own limitation regime. The employment relationship is contractual, and the master-servant dynamic does not oust the application of the statutory limitation period. The court will examine the enabling statute to determine the applicable limitation.
