THE NIGERIAN LABOUR ACT 1971: LOOKING AHEAD - 1

Section 1(1) - (3) of the Nigerian Labour Act 1971 provides for the mode or manner of payment of wages and other packages and benefits to workers by employers.

Section 1(1a) reads, ''The wages of a worker shall in all contracts be made payable in legal tender and not otherwise:''

I believe this particular section should read, ''The wages of a worker shall in all contracts be made payable in legal tender''. This sentence, one, is not ambiguous. It is clear and concise. Two, the use of the word ''shall'' imposes an obligation to act on the employer. Three, this conforms with some of the principles of modern legal drafting.

Section 1(2) reads - ''An employer may provide food, a dwelling place or any other allowance or privilege as a part of a worker's remuneration if the food, dwelling place, allowance or privilege is prescribed by law, by a collective agreement or by an arbitration award because it is customary or desirable in view of the nature of the industry or occupation in which the worker is engaged; but in no case shall an employer give to any worker any intoxicating liquor or noxious drug by way of remuneration.''

I have two observations in Section 1(2). Wages are usually associated with employee compensation that is based on the number of hours worked multiplied by an hourly rate of pay. Remuneration is also money paid for work or a service. So the use of either of the two words in any other section of the Act is appropriate. However, I strongly believe that the context in which the word, ''remuneration'' is used here is inappropriate.

It has been argued that section 1(2) is an exception to section 1 (1a). I do not agree with this. The use of the word ''may provide'' has differentiated the purpose of section 1(1a) from section 1(2). One, it is not in any way approving ''food, dwelling place or allowances'' as a substitute for ''legal tender''. Two, ''shall'' imposes an obligation to act on the employer. Wages once earned must be paid for by the employer. Three, ''may provide'' leaves those items at the discretion of the employer.

I believe the appropriate word should be ''packages or benefits'' instead of ''remuneration''. You should read it again. Insert the words ''packages or benefits'' where we presently have ''remuneration''. This makes better reading and sense to me.

Or in the alternative, it should read,

''An employer may provide food, a dwelling place or any other allowance or privilege for a worker. If the food, dwelling place, allowance or privilege is prescribed by law, by a collective agreement or by an arbitration award because it is customary or desirable in view of the nature of the industry or occupation in which the worker is engaged; but in no case shall an employer give to any worker any intoxicating liquor or noxious drug by way of allowance or privilege''

Assuming I support the argument in favor of the exception above, I strongly believe that this last sentence in Section 1(2), ''in no case shall an employer give to any worker any intoxicating liquor or noxious drugs by way of remuneration.'' will be defeated by the provision of Section 1(1a). I will submit again that this sentence is unnecessary for the reasons stated earlier for my recommended substitute for Section 1(1a) above.

I strongly believe that the appropriate word should be ''packages or benefits'' or similar words like ''allowances or privilege''.

Section 1(3) reads, ''Except where otherwise expressly permitted by this Act, wages payable in money shall be paid only in legal tender or, with the prior consent in writing of the worker concerned, by cheque or postal order and payment or purported payment in any other form shall be illegal, null and void.''

I have tried severally in my many times of reading the Act to under the purport of this, ''wages payable in money shall be paid only in legal tender''

Legal tender is any currency declared legal by a government. In Nigeria, coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tenders for all debts, public charges, and taxes.

A large part of the sentence in the above section is purely a repetition of section 1(1a). it further created some confusion if you carefully look at those words underlined in line with the explanation of Legal tender. It is also unnecessary to have ''the illegal, null and void'' in the sentence ''While any other form of payment shall be illegal, null and void''. It is a common understanding in legal document drafting and law that any prohibited act by an Act contravened by anyone, such an act is deemed illegal, null, and void.

Thus, the section should read,

''Except where otherwise expressly permitted by this Act. wages payable in the legal tender shall be paid by cash, cheque, postal order or a bank transfer with the prior consent in writing of the workers concerned.''

I included a bank transfer in order to bring that section in tune with the present practice in the business world.

In summary, I will suggest that the whole of the present Section 1 of the Nigerian Labour Act 1971 should read,

''(1) the wages of a worker shall in all contracts be made payable in legal tender.

(2) An employer may provide food, a dwelling place or any other allowance or privilege as a part of a worker's package or benefits if the food, dwelling place, allowance or privilege is prescribed by law, by a collective agreement or by an arbitration award because it is customary or desirable in view of the nature of the industry or occupation in which the worker is engaged; but in no case shall an employer give to any worker any intoxicating liquor or noxious drug by way of package or benefits.

or

''An employer may provide food, a dwelling place or any other allowance or privilege to a worker. If the food, dwelling place, allowance or privilege is prescribed by law, by a collective agreement or by an arbitration award because it is customary or desirable in view of the nature of the industry or occupation in which the worker is engaged; but in no case shall an employer give to any worker any intoxicating liquor or noxious drug by way of allowance or privilege.''

(3) Except where otherwise expressly permitted by this Act, wages payable in legal tender shall be paid by cash, cheque, postal order and a bank transfer with the prior consent in writing of the worker concerned.''

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