FG to Commence Prosecution of Companies for Non-Implementaion of Compensation Scheme

By Paul Obi

Following the increasing number of companies yet to implement the Employees Compensation Scheme (ECS), the federal government is to commence prosecution of companies yet to enroll their workers in the scheme.

This was part of the resolution in a parley between officials of Ministry of Labour and Employment and the Nigerian Social Insurance Trust Fund (NSITF).

Minister of Labour and Employment, Sen. Chris Ngige who visited the NSITF Lagos Regional Office  observed that registering only 9,400 employers by the Lagos regional office is abysmally low, arguing that the office has the capacity to achieve its target of 100,000  before the end of 2016.

Ngige expressed concern over the level of non-compliance in Lagos regional area, stressing that employers must get compliance notice in the next couple of weeks before they are dragged to court for prosecution.

The Minister stated that government  would soon raise a surveillance team that will be entrusted with the responsibility of monitoring the performances of the Lagos regional office.

He said: “I understand that some allowances have not been paid to the staff. I want those allowances to be paid in two installments. The first should be paid before the end of June while the second should be paid in September so that people can pay their children school fees.”

Acting Managing Director of the Fund, Ismail Agaka said: “Whoever is defaulting is liable and would be prosecuted in the law courts. The law is very clear about the punishment for defaulting.

“It is our responsibility to prosecute those who are not willing to comply without any genuine cause. There are other ways of dealing with those who are unable to comply genuinely. We will go after those who feel that they can go about their businesses without complying.”

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