LABOUR LAW — Employment with Statutory Flavour — Termination — Requirement to Comply with Governing Regulations
Principle Statement
A statutory body created by statute must act within the powers conferred by that statute and any regulations made thereunder. Any action taken in respect of employment, including termination, must comply with the governing regulations; otherwise, it is ultra vires, null, and void.
Ratio Decidendi (Source)
Per Akintan, JSC, in CBN v. Igwilo (2007) NLC-123-83-2002(SC) at pp. 14–15; Paras B–C.
"The 1st appellant is a Federal financial institution created by statute. It follows, therefore, that both the Bank and officials acting on its behalf cannot act except within and under the powers conferred on them by the relevant statute. Any action taken outside the powers conferred by the statute or regulations made thereof will be ultra vires, null and void."
Explanation / Scope
Public bodies and statutory corporations derive their powers from the statutes that create them. They have no inherent powers outside those conferred. In employment matters, if the enabling statute or regulations prescribe a specific procedure for discipline or termination, that procedure must be strictly followed. Failure to comply renders the termination a nullity, not merely wrongful. The employee is entitled to reinstatement. The principle protects employees of statutory bodies from arbitrary actions and ensures that the employer adheres to the rule of law. It applies to federal, state, and local government bodies.
