Laws Every HR Professional and Employer in Nigeria Should Know (Part 1)

Ignorance cannot be a defence if a company is considered an accessory to workplace wrongdoing. Hence, the need for understanding workplace policies, dispute resolution, regulatory compliance, contractual disputes, and more cannot be overemphasised.

We know, reading through the Nigerian Constitution and the laws on workplace conduct might be boring and time-consuming. That's why we’ve created a three-part series to make it easier and more engaging for you.

In this series, we'll break down key Nigerian legislations that influence how workplaces should run. Follow us over the next three weeks to help your business stay on the right side of the law. And don't forget to subscribe to BizEdge Weekly so you won’t miss out on any of the series.

A. Constitution of the Federal Republic of Nigeria, 1999

Right to Freedom from Discrimination (Section 17, Subsection 3(a-e) provisions)

• No citizen should be treated unfairly or unequally based on community, ethnic group, gender, religion, political characteristics, or other protected attributes.
• No citizen should be accorded a superior privilege based on the same factors.
• Just and humane work conditions, including adequate facilities for leisure and cultural life.
• Safeguarding the health, safety, and welfare of all employed persons.
• Availability of adequate medical and health facilities.

B. Nigeria Labour Act (2004)

1. Contract of Employment (Sections 7, 8, 9, and 13):

• Employers must provide a written contract within three months of employment commencement.
• Any alterations to contract terms must be communicated in writing within one month.
• Persons under 16 cannot enter into a contract of employment.
• Employment contracts are not binding on an employee’s dependents or family.

2. Wages (Sections 1, 2, 4, 5, and 6):

• Wages must be paid with legal tender.
• Employers may provide food, accommodation, or allowances as part of remuneration if legally supported.
• Wages should be paid daily, weekly, or monthly as stated in the contract.
• Payment periods must not exceed one month.
• No wage advances above one month's pay.
• Employers cannot dictate how employees spend their wages.
• Overpaid wages can only be deducted within three months of overpayment.
• No deductions from wages without prior written consent, unless authorised due to employee misconduct.
• Exceptions for deductions include pension funds, trade union contributions, etc.

3. Termination of Employment (Section 11):

• Employment can be terminated if a worker is unwilling to perform duties, save for temporary illness.
• Termination notices (one week or more) must be in writing.
• Minimum notice periods are influenced by the length of employment:

???a. 3 months or less — one-day notice

???b. 3 months but less than two years — one-week notice

???c. 2 years but less than five years — two-week notice

???d. 5 years or more — one-month notice

• Contracts terminate at the expiry of the given notice period.
• Wages payable must be settled before the notice expiry.

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