What You Should Know About Employment Law in Nigeria

 Introduction

If you are an employer or even an employee in Nigeria, having a basic knowledge of employment law in Nigeria is important. This will help you understand your rights and obligations under Nigerian law either as an employer of labour or as an employee.

This is especially necessary as Nigeria’s employment laws draw from various sources, including the Constitution, statutes, and case law. Key legislation includes the Labour Act, which covers terms and conditions of employment, and other federal and state laws related to labour, pensions, and workplace compensation.

So, in this blog post we will be discussing the various employment laws in Nigeria we think you should know about in simple and easy to understand language.

Contents

Introduction

Employee vs Worker

The Importance of Contractual Agreements and Terms

Workplace Discrimination and Protections

Maternity and Family Leave Rights

Termination of Employment

Data Protection and Privacy

What Is Wrongful Dismissal?

Remedies for Wrongful Dismissal

Workplace Harassment: Understanding Your Rights

Employer’s Responsibility for Workplace Safety

Contributory Pension

Conclusion

Frequently Asked Questions

Employee vs Worker

The terms “worker” and “employee” are used interchangeably, but they can have distinct meanings depending on the context and for legal purposes, it is important we understand how these terms differ.

employees in an office

1. Employee:

   – An employee typically has a formal employment relationship with an employer.

   – Employees work under a contract of service (also known as an employment contract).

   – They receive regular wages or salaries and are entitled to various employment rights and benefits.

   – Employees may work full-time, part-time, or on fixed-term contracts.

   – Employers have more control over employees’ work tasks and schedules.

2. Worker:

   – The term “worker” has a broader scope.

   – It includes not only traditional employees but also other individuals who provide services under various arrangements.

   – Workers can be self-employed, freelancers, agency workers, or casual labourers.

   – They may not have the same level of employment rights as employees (e.g., sick pay, maternity leave).

   – Workers often have less control over their work and operate within specific contractual terms.

Simply put, all employees are workers, but not all workers are necessarily employees. The distinction matters for legal purposes, such as determining entitlements and protections.

The Importance of Contractual Agreements and Terms

employment contract

When entering employment, ensure clear contractual agreements that employment in a written contract of employment. Contracts should cover wages, working hours, leave entitlements, and termination procedures and so much more.

Despite the importance of an employment contract and how binding its terms are on the parties, in some cases, it cannot be used to circumvent laid down provisions from any employment law in Nigeria. While contracts can outline specific terms and conditions, certain statutory rights and protections for employees cannot be overridden by express terms in the contract. These include:

– Minimum notice periods.

– Rights under anti-discrimination laws.

– The right to be a member (or not) of a particular trade union.

– Rights related to working time and pay.

In essence, employment contracts must align with legal requirements to ensure fairness and protection for both employers and employees.

For example, in the case of Nwabueze v. Diamond Bank Plc* (2016), the court addressed the rights of temporary workers irrespective of what the contract of employment says. The plaintiff, a contract staff, claimed unfair treatment and sought equal rights with permanent employees. The court ruled in favour of the plaintiff, emphasizing equal pay for equal work and the prohibition of discrimination based on employment status even though the rights the plaintiff seek are not in his employment contract as a contract staff.

4. Workplace Discrimination and Protections

Nigerian law prohibits discrimination based on gender, religion, ethnicity, or disability. Employers must create inclusive workplaces and address any discriminatory practices. Despite the provisions of the law, there exists different forms of workplace discriminations in Nigeria till date, however the onus is on the victim to seek redress in court by consulting a lawyer. Click here to chat with one of our lawyers for your workplace related issues

Every employer should be careful and mindful of all forms of discriminatory practices to avoid lawsuits and paying huge monetary compensations to victims of such at their workplace.

employment laws in nigeria  prohibits discrimination

In Ajayi v. Lagos State University Teaching Hospital (2017), the court addressed workplace discrimination based on gender. The plaintiff, a female doctor, faced gender bias in promotions. The court emphasized equal opportunities and ordered the hospital to rectify the discriminatory practices.

Maternity and Family Leave Rights

Expectant mothers and fathers have rights to maternity and paternity leave. While section 54 of the Labour Act expressly provides for maternity leaves it was silent on paternity leaves. However, the federal civil service, different states and companies have come up with their own policies on this.

Employers should be especially careful to ensure that their maternity leave policies are in tandem with Section 54 of the labour Act. Else, it is illegal, and an aggrieved staff can sue them if her maternity leave and entitlements are short of what it should be.

We have had cases of companies given their female staff as short as 2 weeks maternity leave. This is illegal and inhuman. And victims should seek redress.

Under the Labour Act, 2004, female employees are entitled to maternity leave with the following provisions:

1. Duration: They are entitled to 12 weeks of maternity leave, which includes 6 weeks before and 6 weeks after the delivery.

2. Pay: During maternity leave, female employees are entitled to at least 50% of their salary.

3. Extension: Maternity leave can be extended in case of illness arising from pregnancy or confinement, certified by a registered medical practitioner.

employment laws in nigeria as it relates to maternity leave

In Adeyemi v. Federal University of Technology, Akure (2015), the court upheld the rights of expectant mothers. The plaintiff, a lecturer, was denied maternity leave. The court ruled in her favour, emphasizing the need for employers to accommodate maternity leave requests and protect the health of pregnant employees.

Note that an organisation can however choose to extend the duration for maternity leave or increase the pay to more than 50% of the salary.

 Termination of Employment

When an employer wants to terminate employment, he should ensure that led down due process is followed. For instance, if the rules state that there should have been other disciplinary actions, those must have been exhausted before resorting to termination.

Also, reasons must be given for the termination and adequate notices given.

In Okonkwo v. Zenith Bank Plc (2018) the court clarified the grounds for lawful termination. The plaintiff, a bank employee, was dismissed for alleged misconduct. The court emphasized that employers must follow due process and provide evidence of wrongdoing. The bank’s failure to do so resulted in wrongful dismissal.

Talking about notices, Section 11 of the Labour Act provides for the different length of notices that must be given to an employee before an employment is terminated as follows:

1. For a contract of three months or less: One day’s notice.

2. For more than three months but less than two years: One week’s notice.

3. For two to five years of service: Two weeks’ notice.

4. For five years or more: One month’s notice

Irrespective of the terms of an employment contract, an employee should ensure that his termination notice is not less than as stipulated above, or that he has paid the employee a commensurate amount in lieu of notice.

Data Protection and Privacy

Employers must handle employee data responsibly. Ensure compliance with data protection laws and safeguard personal information.

In Adegoke v. Nigerian Immigration Service (2020), this case was about the unauthorized disclosure of employee data. The court held that employers must safeguard personal information. The plaintiff, a former immigration officer, received compensation for the breach of privacy.

What Is Wrongful Dismissal?

Wrongful dismissal refers to the unlawful termination of employment due to a breach of the terms in the employment contract. This breach can be related to either an implied or express term. Common examples include failing to provide the minimum statutory notice period or not adhering to the contractual notice period specified in the employment agreement. Wrongful dismissal can occur when an employee is dismissed without proper notice or without payment in lieu of notice.

Remedies for Wrongful Dismissal

If you’ve experienced wrongful dismissal, you have legal rights to seek compensation. Except where the contract of employment provided for alternative dispute resolution methods, the best way to get remedy for wrongful dismissal is through the courts. Possible remedies include:

1. Reinstatement: If feasible, returning to your job.

2. Monetary Compensation: Claiming damages for the wrongful dismissal.

3. Injunction or Declaration: Rarely granted but can be sought if damages are inadequate.

Workplace Harassment: Understanding Your Rights

Workplace harassment involves behaviour that intimidates or offends an individual. It can include spreading rumours, unfair treatment, or undermining someone. Harassment is unlawful under the Equality Act 2010. Examples include face-to-face interactions, written communication, or phone interactions. Employees should address harassment informally first, then escalate through their employer’s grievance procedure. Legal action can be taken if necessary.

Employer’s Responsibility for Workplace Safety

workplace safety is mainly the employer's responsibility under employment law in Nigeria

Employers must provide a safe and healthy workplace. Their responsibilities include:

1. Maintenance and Repairs: Ensuring buildings and equipment are in good repair.

2. Fall Prevention: Taking precautions to prevent falls from open edges.

3. Lighting: Providing adequate lighting for workstations, stairs, and outside areas.

4. Safe Movement: Clearing obstructions from floors and walkways.

5. Hygiene and Welfare: Offering clean toilets, hand basins, and rest facilities.

If an employee is injured due to unsafe machinery, the employer may be liable. Proper risk assessments, maintenance, and training are essential to prevent such incidents.

Contributory Pension

contributory pension is an obligation under employment law in Nigeria

 Employers must automatically enrol eligible employees into a workplace pension scheme. Contributions come from both the employee and the employer, with tax relief from the government. Minimum contributions typically total 8% of earnings.

 Conclusion

Though this post is not exhaustive of employment laws in Nigeria, it treated the popular legal issues pertaining to employment in Nigeria. Getting to your rights and obligations under as an employer or employee will save you and protect you. We hope that this post helps you to play on the side of the law or protect you from being a victim.

Click here to contact our lawyers if you have any issues.

We don’t just write to teach you Nigerian law in a simple way, we are your best labour /employment law lawyers in Nigeria. Feel free to reach our firm on, 08030881289.

 Frequently Asked Questions

1. Can an employer terminate an employee without notice?

   – Generally, no. Termination usually requires notice or payment in lieu of notice.

2. What rights do part-time workers have?

   – Part-time workers have rights to fair treatment, wages, and safe working conditions.

3. How can employees address workplace harassment?

   – Report incidents promptly to HR or management. Seek legal advice if harassment persists.

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