Posts Tagged ‘labour law’

Some Highlights of Nigerian Labor Law Act Cap 198 Relevant for Small Business Owners

April 28, 2017

 

  1. Employees must be paid in cash
  2. Payment by check can only be made with the prior consent of the employee
  3. Employer cannot impose conditions on how or where an employee spends his wages
  4. Any advance on salary cannot exceed one month salary and minimum recovery time is 3 months
  5. If there is an outstanding advance employer cannot make a new advance except in necessity
  6. Employers can only make deductions in respect of fines for willful misconduct or neglect if employee has been previously notified and agreed in his contract
  7. Pension scheme deductions must be consented to by employee
  8. Overpayment deductions can only be made if discovered within 3 months
  9. Total deductions from employees salary cannot exceed 1/3 of monthly salary
  10. Contracts required to be signed within 3 months of employment
  11. Any change in terms of contract must be communicated within one month to the employee
  12. Employment contracts terminate on death of employee, expiry of notice or expiry of fixed term contract
  13. Statutory requirements for notice
    1. 1 day if less than 3 months
    2. 1 week if more than 3 months but less than 2 years
    3. 2 weeks if more than 2 years but less than 5 years
    4. 1 months if more than 5 years of continuous service
  14. Conduct that would enable employer terminate contract without notice

a. Gross misconduct such as fraud, theft, insubordination or criminal neglect

  1. Either party can waive the right to notice or to accepting payment in lieu of notice
  2. All wages are to be paid before expiry of notice
  3. Employer not liable to pay for days employee absent
  4. Payment in lieu of notice only applies to salary not overtime or allowances
  5. Normal working hours are fixed through mutual agreement
  6. Work in excess of working hours constitutes over time
  7. If employee is to work more than 6 continuous hours he/she is entitled to 1 hour aggregate break/rest interval
  8. Worker entitled to one day of rest in 7 days
  9. Workers entitled to up to 12 days of paid sick leave for temporary illness if certified by a registered doctor nominated by the employer
  10. After 12 months of continuous service employee is entitled to 6 working days of paid leave
  11. Sick leave and annual leave pay only includes salary (not overtime or allowances)
  12. Women are entitled to 6 weeks leave before birth and confinement and 6 weeks of leave after birth and confinement at 50% of salary
  13. Employer not liable for healthcare costs of said woman
  14. If you have more than 25 employees you are required to set up a pension scheme (Pension Act Cap 346)
  15. Employees in hazardous occupations (mining, heavy machinery etc) must be insured against injury (Workmen’s Compensation Act Cap 407)
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