In Nigeria, the Labour Act is the principal legislation governing employment relations in the country.
Notwithstanding, other laws are also applicable to employers and employees, respectively.
In order to regulate the intricate dynamics of employee-employer relationships, Nigeria establishes some laws that serve as a cornerstone for defining the rights and responsibilities of both the employer and the employee.
These laws and regulations aim to ensure fairness, equity and productivity in the workplace.
TheJurist Newspaper Limited brings you eight things to know about employment and labour laws in Nigeria.
Employment laws and regulations
- Leave – A pregnant female worker is entitled to six weeks of leave before the projected delivery date and another six weeks after the delivery, according to Labour.
- The Act also provides that a female worker who has been in employment for six months or more immediately before the maternity leave is entitled to at least 50% of her pay for the duration of the maternity leave.
- Although the Labour Act has no provision for paternity leave, the Nigerian Federal Government has approved a 14-day paternity vacation for male federal civil servants. Thus, employee entitlement in this regard is dependent on the terms and conditions of the employee’s work contract.
2. Written contract- According to the Labour Act, there must be a written contract between the employer and employee within three months of the start of employment.
- Certain crucial phrases must be included in the contract, such as the name of the employer/employee, the nature of the employment, the duration, the wages, and so on. This is to ensure that the employee is safeguarded by reducing all pertinent phrases to writing so that the employee understands what is expected of him/her.
- It is also critical that any change in employment terms be communicated to the employee in writing within one month.
3. Entitlement to pensions- Another regulation that governs employment is the Pension Reform Act 2014, which replaced the Pension Reform Act No.2 of 2004.
- In section 2 of the Act, private sector firms with fifteen (15) or more employees are mandated to create a Contributory Pension Scheme for the benefit of the employees, from which retirement payments would be paid.
- Section 4 of the Act states that the minimum rate of contribution due by the employer is 10% of the employer’s monthly salary and 8% of the employee’s monthly earnings. The rate of contribution payable may also be raised upwards from time to time, subject to agreement between the employer and employee, and when this occurs, the Commission will be notified of the revision.
4. Right to join trade unions- Another law that governs work in Nigeria is the Trade Union Act Cap T4 LFN 2004 and under this law, every worker or employee has the right to form a trade union or join an already existing trade union.
Section 17 of the Act provides for deductions from union members’ salary, stating that upon the registration and recognition of any trade union, the employer shall;
- Make deductions from the wages of every worker who is a member of any of the trade unions to pay contributions to the trade union so registered and also,
- Remit such deductions to the registered office of the trade union within a reasonable period or such period as may be prescribed from time to time by the registrar.
5. Freedom from discrimination – The Nigerian Constitution forbids discrimination against Nigerian residents based on their community, ethnic group, place of origin, gender, religion, political viewpoint, or birth circumstances.
Accordingly, the HIV and AIDS (Anti-discrimination) Act 2014 prohibits employers from discriminating against employees directly or indirectly based on their HIV status or HIV-related illness.
Similarly, the Discrimination Against Persons with Disabilities (Prohibition) Act of 2018 makes it illegal to discriminate against people with disabilities.
The Lagos State Special Peoples Law 2011, which only applies in Lagos State, also forbids handicap discrimination in the workplace.
6. Protection of employee data- Section 37 of the Constitution safeguards and protects workers’ privacy, including their houses, mail, phone calls, and telegraphic contacts.
The terms of this section are extremely broad, and employers are understood to be covered by it and, as a result, must respect the employee’s right to privacy.
Concerning the transfer of employee data outside of Nigeria, the Nigerian Data Protection Regulation 2019 (the “NDPR”) establishes basic data protection criteria for all organizations or individuals who control, collect, store, or process the personal data of Nigerian nationals.
The NDPR states that personal data cannot be transferred outside of Nigeria unless it is done under the supervision of the Attorney General of the Federation (“AGF”).
7. Deduction of salaries- Under the Nigerian Labour Act, Employers may not deduct an employee’s wages for any reason, except for a fair deduction for injury/loss caused to the employer by the employee, and only with the prior written agreement of an authorised labour officer.
If per adventure, an employee receives an overpay by mistake, such overpayment can only be deducted within three months of the overpayment date.
Any attempt by an employer to deduct the overpayment from future compensation after the three-month term has expired is prohibited.
8. Termination of employment: According to section 11 of the Labour Act, workers must be given notices before termination is done and such notices are;
- One day if the service period is up to three months;
- One week if the service period is up to two years;
- Two weeks if the service period is up to five years;
- One month if the service period is five years or more.