Hire in Nigeria

Employers typically have the authority to conduct background checks on applicants, which may include inquiries into criminal records, medical history, drug screening, and credit checks, albeit subject to specific limitations. These background checks may be outsourced to a third party acting on behalf of the employer.

While the Labor Act doesn’t include provisions for probationary periods, employers can include such periods in the employment contract if desired.

In Nigeria, the standard working week spans from Monday to Friday. Typically, commercial offices operate for eight hours each day, with full-time employment generally comprising 40 hours per week.

Employees working six hours or more per day are entitled to one or more adequately spaced rest breaks totaling at least one hour.

Overtime regulations are outlined in Section 13 of the Labour Act. Any hours worked beyond the mutually agreed or collectively bargained normal hours constitute overtime. These agreements should specify the rate of compensation for overtime.

Typically, senior executives do not qualify for overtime payments in practice.

It is required by statute to maintain payroll reports for a minimum period of six years.

Employers in Nigeria are not legally obligated to provide bonuses according to statutory requirements. However, it is prevalent in the private sector to offer contractual or discretionary bonuses as a form of employee recognition and reward.

Employers typically have the right to terminate an employment contract at any time without specifying a reason, provided the appropriate notice is given or a salary in lieu of notice is paid. However, adhering to international standards, it is recommended that employers state reasons for termination.

In cases of termination due to business-related reasons such as redundancy, workers are entitled to the following payments:

1. Agreed redundancy or severance payment
2. Accrued salary until the effective termination date
3. Encashment of accrued, unused annual leave entitlement
4. Unpaid incentives or bonuses (if applicable)
5. Gratuity payments (if applicable)
6. Reimbursement of out-of-pocket expenses incurred by the employee (if applicable)

In case of redundancy, the employer is obligated to inform the trade union/representatives about the reasons and extent of the expected redundancy. The principle of ‘last in, first out’ should be applied to determine the affected employees, and negotiations regarding redundancy payments are expected.

For non-workers, redundancy payments are not mandated by law but are subject to individual employment contracts.

Termination due to reasons specific to an employee is governed by the terms of the employment contract. This typically includes accrued contractual payments such as salary in lieu of notice if notice is not provided by the employer, accrued salary, and payment for unused annual leave.

In cases of misconduct, the employer must provide the employee with an opportunity to defend themselves prior to dismissal.

Upon termination of employment, the tax authority must be notified accordingly.

Employees are entitled to receive notice of termination or a payment in lieu of notice.

The notice periods are as follows:

• – One day for length of service up to three months
• – One week for length of service up to two years
• – Two weeks for length of service up to five years
• – One month for length of service exceeding five years

Both the employer and the employee may mutually agree to longer notice periods in the employment contract. For non-workers, the notice period is determined by the terms of the employment contract.

In Nigeria, there is no overarching statutory requirement for severance pay. However, it can be stipulated in individual employment contracts and sector-specific collective agreements. Typically, severance pay is determined based on the employee’s length of service and final salary.

The terms of restrictive covenants are outlined in the individual employment contract. Generally, restrictions on trade lasting for 12 months or less are enforceable in practice. However, anything exceeding one year is likely to be considered unfair and unenforceable by the courts.

Additionally, the employer is not obligated to provide remuneration during the period of post-employment restrictions.

In Nigeria, there is no specific restriction on the duration of a fixed-term contract. However, the length of the contract must be clearly stated in the employment agreement. If the employee continues to work for the employer after the contract expires, it will be considered the start of a new fixed-term contract or the employee may be regarded as a permanent employee.

Fixed-term employees are entitled to the same employment rights and benefits as permanent employees.

The employer is required to furnish the employee with a payslip for every pay period. These payslips can be provided electronically, such as through an online platform.

Every employee is entitled to paid annual leave of at least six working days after completing 12 continuous months of service. For employees not covered by the Labor Act, there is no statutory provision regarding annual leave. However, it is customary to provide 15 to 20 working days of annual leave per 12 months of continuous service.

An employee is entitled to 12 days of paid sick leave in any calendar year, with the sickness requiring certification by a registered medical practitioner.

Additionally, the Employees Compensation Act establishes provisions for compensating employees who experience work-related injuries or illnesses.

Maternity Leave:

Expectant employees are entitled to a 12-week maternity leave period.

During maternity leave, pregnant employees are eligible for at least 50% of their regular wages, provided they have been employed for a minimum of six months.

Nursing mothers are granted two half-hour breaks daily to tend to their infants. Additionally, surrogate mothers may qualify for maternity leave.

Paternity Leave:

The Labor Act does not address paternity leave. However, in Lagos State, civil servants are granted ten days of paternity leave within the initial two months following the birth of their child.

Other Types of Leave:

There is no statutory provision for parental leave or leave to care for ill family members. Employees not covered by the Labor Act typically receive bereavement/compassionate leave ranging from one to two weeks, though it’s at the discretion of the employer to establish their policy.

Nigeria typically observes around 14 public holidays annually.

Generally, if termination is not due to justifiable causes like non-performance or misconduct, mutual agreement is sought for termination, with the terms documented. In such cases, a termination payment, such as redundancy pay, may be made.

Termination of employees is not uncommon in other sectors as well.

Female employees are entitled to 26 weeks of maternity leave, which can begin as early as eight weeks before the expected delivery date. The remaining weeks can be taken after childbirth. For women expecting their third child or more, the paid maternity leave duration is 12 weeks, with six weeks before and six weeks after the expected delivery date. Maternity leave is granted with full pay if the employee has completed at least 80 days of service with the employer in the 12 months before her expected delivery date. Maternity benefits are paid at the average daily wage rate for the duration of the absence from work. Additionally, female employees receive a medical bonus of INR 3,500 if health benefits are not provided by the employer. If a woman’s job allows, she may work from home after utilizing maternity benefits, based on mutual agreement between her and the employer.

The law also provides for adoption leave of 12 weeks for women adopting a child under three months old. A commissioning mother, who provides her egg for embryo implantation in another woman, is entitled to 12 weeks of leave from the date the child is handed over to her. The woman giving birth, known as the host or surrogate mother, is not eligible for this leave.

Employers are required to inform female workers of their rights under the Act at the time of appointment, both in writing and electronically.

While paternity leave is offered to government employees, it is not mandated in the private sector, and its provision is at the discretion of the employer.

Some types of leave, such as study leave, bereavement leave, and leave for voting, may vary depending on the industry or state of employment. These leaves can be paid, unpaid, or half-paid, and their availability is typically determined by the organization’s policies and practices.