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90+ Employment Laws & Facts in Nigeria You Need to Know

Updated on Oct 29, 2025 4101 views
90+ Employment Laws & Facts in Nigeria You Need to Know

General Employment and Contract Laws

 

  1. Every employee must receive a written contract within 3 months.

  2. The contract must state job title, wages, hours, leave, and termination procedures.

  3. Verbal contracts are allowed but must be proven in court if disputed.

  4. Probation periods must be clearly stated in the employment contract.

  5. Employers must respect the terms of the employment contract or risk liability.

  6. Changes to contract terms must be agreed in writing.

  7. An employee can terminate a contract by giving notice or payment in lieu.

  8. An employer must also give notice before dismissal, unless for gross misconduct.

  9. Minimum notice periods range from 1 day to 1 month depending on length of service.

 

Wages and Remuneration

 

  1. The minimum wage is ₦70,000/month.

  2. Wages must be paid in legal tender, not goods or promissory notes.

  3. Wages become due at the end of each period for which the contract exists.

  4. If the period exceeds one month, payments must occur at least monthly.

  5. Wage deductions are only allowed with employee consent or court order.

  6. Total deductions must not exceed one-third of total wages.

  7. Overtime must be voluntary and paid according to contract.

  8. Equal pay for equal work regardless of sex.

  9. Employees must receive a payslip detailing statutory deductions.

  10. All money owed must be paid by the end of the notice period.

  11. Unauthorised or underpaid wages may be recovered through court or the Ministry of Labour.
     

 

Leave and Time Off

 

  1. Employees are entitled to 6 days of paid annual leave after 12 months.

  2. Female employees get 12 weeks of maternity leave.

  3. Sick leave is allowed if certified by a registered doctor.

  4. Public holidays during annual leave cannot be counted as leave days.

  5. Paternity leave of 14 days is permitted.

  6. Employees are entitled to one full day of rest every 7 days.

  7. Rest breaks must be provided during long shifts.

  8. Pregnant employees cannot be dismissed solely due to pregnancy.

  9. Annual leave can be deferred but must be taken within 24 months of earning.

 

Workplace Conditions and Safety

 

  1. Employers must provide a safe workplace.

  2. All factories must be registered with the Director of Factories.

  3. Machinery must be fenced or guarded to prevent injuries.

  4. Employers must provide adequate ventilation, lighting, and cleanliness.

  5. First aid boxes must be clearly marked and accessible.

  6. Dangerous gases or chemicals must be properly handled and stored.

  7. Accidents must be reported to the Factory Inspector within 24 hours.

  8. Employers must train employees on occupational safety and health.

  9. Noise, fumes, and dust must be reduced to safe levels.

  10. Fire escapes and emergency exits must be clearly marked and functional.
     

Children and Young Workers

 

  1. Children under 12 cannot be employed in any capacity.

  2. Children aged 12–15 may only do light work, not hazardous work.

  3. No one under 18 may be employed in industrial undertakings or night work.

  4. Child labour laws apply to both formal and informal sectors.

 

Discrimination and Human Rights

 

  1. Discrimination in employment is prohibited by the Nigerian Constitution.

  2. Gender, religion, ethnicity, and disability cannot be grounds for denial of employment.

  3. Sexual harassment at work is punishable under human rights laws.

  4. HIV-positive workers are protected against discrimination.

  5. Employers must make reasonable accommodations for disabled workers.

 

Trade Unions and Collective Bargaining

 

  1. Workers may form or join a registered trade union.

  2. Employers cannot prevent union activities or retaliate against union members.

  3. Only one union may represent a class of workers in a workplace.

  4. Unions must be registered with the Registrar of Trade Unions.

  5. Collective agreements are binding on employers and employees.

  6. Strikes can only occur after conciliation and 15-day notice.

  7. The right to peaceful picketing is protected.

  8. Employers must consult unions during redundancy or restructuring.

  9. A strike during essential services must follow strict procedures.

  10. Lockouts by employers are also regulated under law.

 

Pension, Compensation & Benefits

 

  1. Employers with more than 3 employees must register for pension contributions.

  2. Employer contributes 10%; employee contributes 8% of monthly salary.

  3. Employees can open their own Retirement Savings Accounts (RSA).

  4. Contributions must be remitted monthly, or penalties apply.

  5. All work-related injuries and illnesses are compensable under the ECA.

  6. If an employee dies from a work-related cause, the family receives a funeral allowance and pension.

  7. Compensation includes medical expenses, lost wages, and rehabilitation.

  8. NSITF manages compensation for work-related issues.

  9. Employers must submit incident reports for any work-related injury.

  10. Non-compliance with ECA may attract penalties or criminal charges.

 

Redundancy and Termination

 

  1. Redundancy must be based on objective, fair criteria.

  2. Affected workers must be consulted or informed in advance.

  3. Severance pay is not mandated, but must follow contracts.

  4. Termination without due process may be deemed wrongful dismissal.

  5. Employees must be given a fair hearing before dismissal for misconduct.

  6. Resignation requires notice or payment in lieu.

  7. Constructive dismissal (forced resignation due to hostile environment) is actionable.

  8. Termination based on pregnancy or illness is unlawful.

  9. Employers must issue Certificates of Service on request.

  10. Expatriates must obtain CERPAC and expatriate quota before working.

 

Dispute Resolution and Court Access

 

  1. Disputes must go to Mediation/Conciliation Units before court.

  2. The National Industrial Court has exclusive jurisdiction over labour cases.

  3. The court can award reinstatement, damages, and compensation.

  4. Collective disputes are referred to the Industrial Arbitration Panel (IAP).

  5. IAP decisions may be appealed to the National Industrial Court.

  6. Urgent matters may receive injunctions or interlocutory relief.

  7. Courts recognize international labour conventions ratified by Nigeria.

 

Modern and Digital Labour Issues

 

  1. Remote workers are still covered by labour law.

  2. E-contracts and emails can be valid employment agreements.

  3. WhatsApp and SMS messages may be used in employment litigation.

 

Statutory Reporting and Employer Duties

 

  1. Companies with more than 5 employees must contribute 1% to ITF with an exemption of startups if they provide in-house training.

  2. Employers must report employment status changes to relevant agencies.

  3. All employers must file monthly PAYE tax returns to state boards.

  4. Annual returns to the Ministry of Labour are mandatory for some.

  5. Non-compliance with labour laws can lead to closure, fines, or imprisonment.

 

Conclusion

Understanding and complying with Nigerian employment laws is important for both employers and employees. Employers who adhere to these laws not only avoid legal risks but also build trust and sustainability in their business operations. Employees, on the other hand, are empowered to know their rights and seek redress where necessary. 

Staff Writer

This article was written and edited by a staff writer.

3 Comment(s)

  • Fadila Bukardalah
    Fadila Bukardalah May 23, 2025
    It was a pleasure for me to meet you as i agreed with all the terms and conditions
  • Rabiu Sani
    Rabiu Sani May 24, 2025
    So splendid
  • Adeosun ademola olamide
    Adeosun ademola olamide Jul 23, 2025

    Good 

     

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