Labour and Employment law in Nigeria: A guide for Employers and Employees

Labour law is a set of rules that govern the relationship between the government, employers, employees, and trade unions. Labour law establishes minimum employment standards, promote good labor relations, and provide procedures for managing labour related issues. 

Nigerian labour law looks into the rights, working conditions, minimum wage, termination clauses, and many other rules set by the government of Nigeria. The current version of the act was put into place in the year 2004.

Leading labour law firms across different jurisdiction of the world have had to respond to plethora of legal issues around labour and employment in which Nigeria is not an exception. 

Below are some legal common questions and responses that can serve as a guide for employers and employee in Nigeria:

1. What types of workers are entitled to employment law protections, and how do their classifications differ?

The Nigeria employment law protects two broad categories of workers namely workers and Employees- The former are employees who perform manual labor or clerical work, such as casual, contract, or part-time workers. They are protected by basic labor protections under the Labour Act, but may not receive the same benefits as employees.  While the latter are those who perform administrative, executive, technical, or professional functions, such as full-time managers, engineers, and lawyers. They are typically covered by formal employment contracts and receive more extensive benefits than workers. 

The factors which distinguish them are as follows–

1.  Control over work
2. Employment contract
3. Payment structure
4. Benefits and protection
5. Work schedule and flexibly 
6. Independence and autonomy

2. Do Nigerian labor laws imply specific terms or conditions into employment contracts? 

In Nigeria, contracts of employment could be oral or written, implied or express.  Contracts of employment do not necessarily have to be in writing, but it is highly recommended to have a written contract to avoid disputes and clarify terms. While not mandatory, the Labour Act encourages employers to provide written contracts, especially for Contracts exceeding 3 months

3. Are any terms implied into contracts of employment?

Yes, Nigerian law implies certain terms into contracts of employment, even if not explicitly stated. Example is the duty of the Employer to provide necessary tools and equipment for use in the course of the employee’s work etc.

4. Are there legally mandated terms and conditions of employment that employers must adhere to?

Yes, Nigerian law sets minimum employment terms and conditions that employers must observe. The Regulatory law like Labour Act LFN 2004, National Minimum Wage Act (2019), Employees Compensation Act (2010), Pension Reform Act (2014), Factories Act (1974) through regulatory bodies such like the Federal Ministry of Labour and Employment, National Industrial Court and Nigeria Labour Congress (NLC) provides these terms and conditions which includes – Minimum Wage, Working Hours, Leave (Annual Sick, Maternity, Paternity), Overtime, Notice Period, Termination (like Unfair dismissal, Severance pay), Health and Safety (Safe working conditions , Compensation for work-related injuries), Equality and Non-Discrimination, pension etc

5. Can employers implement hybrid work arrangements, requiring employees to divide their worktime between home and office, and what implications does this have on employment contracts?

Yes, employers can require employees to split their working time between home and the workplace on a hybrid basis, but they must consider the following: Employment contracts, Mutual agreement between Employer and Employee, Implementation of measures to safeguard company data and confidentiality. Etc

6. In today’s digital landscape can employee expect remote work opportunities as a standard benefit?

In Nigeria, Employees do not have an automatic right to work from home, it is at discretion of the Employer. However, the COVID-19 pandemic accelerated the adoption of remote work, transforming the way we work and live.

7.  What is the legality of being sacked after one has resigned giving a month notice, but got sacked during the notice period?

The principle of law is that an employee who has submitted his resignation letter cannot be sacked by his employer, it was enunciated in the case of United Bank of Nigeria v. Bako N. Chori (2021) LPELR-55720 (CA), neither can you submit a resignation letter after you have been sacked. Basically, it also echoes the latin maxim “that you cannot put something on nothing and expect it to stand”

8. My employer terminated my employment, without stating any reason. Is this action valid?

In Nigeria, employers can generally terminate employment without stating a reason, as long as they give the employee proper notice or pay them instead of giving notice. Also, an employer must pay the employee any remaining benefits, including any owed salary for the time such an employee has already worked.

9. Does the Nigeria Labour Law protect women on maternity leave?

YES, it stipulates that upon presentation of a medical document, women are entitled to 12 weeks’ maternity leave and during that period she is entitled to be paid not less than 50% of the salary she would have earned if not for her absence. Any employer who contravenes this provision shall be guilty of an offence and he/she is liable to be convicted.

10. Are men entitled to Paternity leave in Nigeria?

Although there is no statutory paternity leave for men. However, male Federal Civil Service workers have gained access to a 14-day paternity leave, granted by the Federal Government of Nigeria. Male staff members of certain state governments, such as the states of Enugu and Lagos, are also eligible for paternity leave.

In Enugu State, paternity leave lasts for 3 weeks, however in Lagos State, it lasts for 2 weeks and is only applicable to the employee’s first 2 children.

Note: The content of this article is anticipated to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance.

Written by Deborah Ogedengbe and Adeola Austin Oyinlade for Adeola Oyinlade & Co.

Adeola Oyinlade & Co.; a leading full-service law firm in Nigeria provides help and offers advisory to both local and foreign clients on employment and labour law in Nigeria. 

To see our service offerings, please contact us at [email protected] or visit www.adeolaoyinlade.com

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