Nigerian Labour Law / Act (PDF Download)

The Nigerian Labour Law, also referred to as the Labour Act, is the legal framework that governs employment relationships in Nigeria. Whether you are an employer, employee, HR professional, or business owner, understanding the Labour Act is essential to ensure fair treatment, avoid legal issues, and promote a safe and productive work environment.

This post provides a detailed breakdown of the Nigerian Labour Act, including key sections, employee rights, employer obligations, and workplace standards. We’ve also included a link to download the official Labour Act PDF for easy reference.

Breakdown of the Nigerian Labour Act

The Labour Act of Nigeria primarily applies to workers engaged under a contract of employment and is divided into parts and sections that outline rights, responsibilities, and procedures related to employment.

Here’s an overview of key aspects of the Nigerian labour law:

1. Termination of Employment

Termination of employment in Nigeria is regulated by contract terms and the Labour Act. An employer can terminate an employee's contract with proper notice, as stipulated in the employment contract. Notice periods typically vary based on the length of service:

• One day for employees who have worked less than three months.
• One week for three months to two years of service.
• Two weeks for two to five years of service.
• One month for over five years of service.

Payment in lieu of notice is an option if notice is not given. Termination should not be discriminatory, and dismissal for misconduct must be based on justifiable reasons.

2. Annual Leave

Employees in Nigeria are entitled to at least six working days of paid annual leave after completing 12 months of continuous service. For employees under the age of 16 or those engaged in physically demanding jobs, annual leave is a minimum of 12 working days.

3. Maternity Leave

Female employees are entitled to 12 weeks (six weeks before and six weeks after childbirth) of maternity leave, with at least 50% of their regular wages. During maternity leave, employers cannot terminate employment. Some employers provide more generous benefits than the law mandates, and there are also provisions to accommodate nursing mothers.

4. Salary Deductions

Salary deductions are regulated to ensure they are lawful and reasonable. Employers may deduct for reasons such as taxes, social security contributions, and legally permitted fines, but any other deductions need the employee's written consent.

5. Resignation

Employees can resign by giving notice as per the employment contract or paying the equivalent salary in lieu of notice. The resignation process is similar to termination, requiring a notice period based on the length of service.

6. Severance Pay

Severance pay is not explicitly mandated by Nigerian law except where it is provided in the employee's contract, a collective agreement, or as a company policy. Redundancy cases require employers to negotiate with unions or employee representatives for any payment arrangements.

7. Sick Pay

There is no statutory requirement for sick pay under Nigerian law. Employers may provide sick leave benefits according to company policies or employment contracts, which commonly offer full or partial payment during sick leave.

8. Leave

Beyond annual leave, employees may be entitled to other leave types, such as:

• Casual Leave: Time off for personal reasons.
• Sick Leave: Time off due to illness.
• Study Leave: For educational purposes, if agreed upon in the employment contract.

The provisions for these leave types vary across companies.

9. Leave Allowance

Leave allowance (also known as leave bonus) is commonly provided by employers in Nigeria, typically equating to a certain percentage of the employee's salary, though it is not explicitly required by law.

10. Public Holidays

Employees are entitled to paid public holidays, as declared by the government. These holidays may vary slightly each year but generally include national celebrations like Independence Day, Christmas, Easter, and Eid al-Fitr.

11. Contract Staff

Contract staff are hired for a specified period or project, and their terms of employment are governed by the contract. They may not enjoy all the statutory benefits permanent employees receive unless specified in their contract.

12. Suspension Without Pay

Suspension without pay may be used as a disciplinary measure for employees involved in gross misconduct. The employer must follow due process and, in many cases, conduct a fair hearing before imposing such a suspension.

13. Salary

Salary arrangements must comply with the terms of the employment contract, which may specify payment intervals (monthly, weekly, etc.). Employees should be paid on time, with appropriate deductions made only as allowed by law.

14. 13th Month Salary

The 13th-month salary (bonus payment at the end of the year) is not mandated by Nigerian law. However, some employers offer it as a practice or part of company policy.

15. Working Hours

The standard working hours in Nigeria are 40 hours per week, typically eight hours a day, five days a week. Any work beyond these hours may qualify for overtime pay, subject to the terms of the employment contract.

16. Contract of Employment

According to Section 7 of the Act:

• Every employer must provide a written Contract of Employment within 3 months of a worker’s start date.
• The contract must contain:
  • Job title and description
  • Wages and payment method
  • Work hours and leave entitlement
  • Termination conditions
  • Other relevant benefits

17. Trade Unions and Dispute Resolution

• Workers have the right to form or join trade unions
• Procedures exist for:
  • Collective bargaining
  • Strike actions
  • Dispute resolution via industrial arbitration

Download the Nigerian Labour Act PDF

For full legal reference, you can download the official Nigerian Labour Act PDF below:

Download the Nigerian Labour Law 2004 in PDF

Understanding the Nigerian Labour Act is crucial for maintaining lawful, respectful, and productive employment practices. Whether you're negotiating a contract, hiring staff, or managing HR policies, this law provides the foundation for ethical and legal workplace conduct.