Nigeria has the largest population of all African countries. It also has one of the fastest developing economies in the world. The country has suffered government coups, a civil war, several constitutional changes, as well as military rule. Today, Nigeria has a federal republic system of government influenced by colonial English, traditional and Islamic laws. Nigeria relies largely on oil as an export, followed by agricultural and industrial raw materials and products. Half the population of Nigeria is Muslim while the other half is Christian or Indigenous. The country’s official language is English, but other local languages such as Yoruba, Igbo, and Hausa are also used widely. Nigeria is a community-oriented country where extended family members are closely involved in an individual’s day-to-day activities. Age, seniority, and social status are also very important as a way of signifying respect and honor.
Nigerian labor law distinguishes between "workers" (those who perform manual and clerical work) and "employees" (or "non-workers") who perform executive, administrative, technical, or professional work. The law states that the Labour Act applies to workers, while employment relationships with employees are governed by the applicable employment contracts and common law. However, the Employees Compensation Act and the Labour Act are generally considered to cover any employed person who has a contract with an employer. It applies to employment relationships created under written or oral contracts, whether on an indefinite, fixed-term, part-time, temporary, apprenticeship or casual basis. It also applies to employees in informal sectors.
Contracts that do not specify a fixed expiry date are considered indefinite-term contracts or permanent. Such contracts are terminated by giving a notice or in any other way in which a contract is legally terminable or held to be terminated.
The Employee Compensation Act requires every employer to make a minimum monthly contribution of 1% of the total monthly payroll into the Employee Compensation Fund.
Employers must give employees a written statement no later than 3 months after beginning employment. The statement must specify employer and employee particulars, the nature of employment, leave, sick pay, holidays, notice period, and wage rate. If an employee is given a written employment contract, a written statement is not required. If any of the employment conditions change, the employer must notify the employee in writing within 1 month of the change.
A non-compete clause can be included in the employment contract. It is enforceable only if it is reasonable in its scope (in terms of time restraint, geographical area) and does not infringe on the rights of employees or restrain freedom of trade. Employers can include such a clause to protect their professional secrets or business interests. Courts have the power to invalidate such clauses if they are found to be unreasonable and oppressive.
Nigeria's labor law does not differentiate between permanent and temporary employees. Casual or temporary employment relationships are recognized as employees under the Employees' Compensation Act and are entitled to earn the minimum wage. Employers must contribute 1% of the monthly wages of temporary employees to the Employees' Compensation Fund, and these employees are entitled to compensation in case of suffering workplace injuries, diseases, disabilities, or death during their employment.
The Trade Unions Act of Nigeria recognizes temporary workers and allows them to form trade unions.
In Nigeria, there are no provisions or guidance on probationary periods. In the absence of guidance provided through the labor law, the standard best practice is for the probationary period to be included in employment contracts or letters of appointment. It generally ranges from 3 months to 6 months.
The National Industrial Court of Nigeria (NICN) has rules that probationary periods can be used to assess whether the employee is a good fit for the role. It must be mentioned in a written contract. Either party can terminate the contract during this period. Employers can terminate an employee's employment during a probationary period; no procedure needs to be followed.
Even if the individual contract provides for the extension of the probationary period, the NICN has maintained that it is an unfair labor practice to retain the right to perpetually extend the probationary period.
In Nigeria, the Labour Act does not indicate a standard number of weekly working hours. The mutual contract between an employer and employee determines an employee's working hours. Minors under 16 years of age cannot be required to work for a period longer than 4 consecutive hours. Additionally, minors are prohibited from working more than 8 hours a day.
Employees must generally be given a break of 1 hour for every 6 hours of work. Employers are also mandated to provide a paid rest day for every 7 days of work.
An employee who has worked for a continuous period of 12 months is entitled to a paid leave of at least 6 working days. Employees under 16 years of age are entitled to 12 days of annual leave. Annual leave is paid as the employee's basic pay, excluding all allowances and overtime pay.
Annual leave must be taken by the end of the year in which it is earned, but it can be deferred by mutual agreement for a maximum of 24 months. Both earned and deferred leave has to be taken within these 24 months.
An employee is entitled to 12 days of paid sick leave per year, provided that the temporary illness is certified by a registered medical practitioner. Benefits for sick leave are paid as the employee's basic pay, excluding all allowances and overtime pay.
A female employee is entitled to 6 weeks of maternity leave before and 6 weeks after the expected date of childbirth, provided that the employee has obtained a medical certificate from a registered medical practitioner. This leave is applicable for both legitimate and illegitimate children. Maternity leave is paid at a rate of at least 50% of the wages the employee would have earned had they not been absent, provided that the employee had been working for the same employer for a period of 6 months before the leave.
The employer is not liable to pay for any medical expenses incurred by a female employee during pregnancy or childbirth.
Employers are prohibited from terminating a female employee during an absence after maternity leave if this absence is due to inability to resume work related to conditions arising from delivery. Extended maternity leave is unpaid.
The Labour Act of Nigeria offers no provisions regarding paternity leave for private employees. However, married male public servants are given 14 working days of paid paternity leave. Paternity leave is also available in case of adoption of a baby less than 4 months old. This leave is granted not more than once in 2 years, and for a maximum of 4 children.
The notice period is calculated based on the length of employment:
1 day, where the employment has lasted 3 months or less
1 week, where the employment has lasted for more than 3 months but less than 2 years
2 weeks, where the employment has lasted between 2 years and less than 5 years
1 month, where the employment has lasted for 5 years or more
Any notice period of more than 1 week has to be in writing. The notice period requirement can be waived by paying the employee's basic wages (excluding overtime and other allowances) in lieu of notice. Contracts can be terminated without notice in case of gross misconduct by either party.
Severance payments are not mandatory under the law but may be specified in employment contracts or collective bargaining agreements. In addition, the Labour Act gives the Minister of Labour the authority to enact regulations on severance pay for employees made redundant.
