Nigeria : A Structured Guide to Employment and - PowerPoint Presentation

1. Nigeria: A Structured Guide to Employment and Labor LawsFebuk UyaLLM Corporate and Commercial Law Track Candidate, May 2021IU McKinney School of Law

2. OUTLINEEmployment Laws and Regulations Employee/Independent Contractor classificationTerms and Conditions of EmploymentEmployment Representation and Industrial RelationsTermination of EmploymentEmerging trends in Nigerian Employment LawConclusion

3. Employment Laws and RegulationsThe Constitution of the Federal Republic of Nigeria 1999 (as amended) (the “Constitution”);The Labor Act, Chapter L1, Laws of the Federation of Nigeria 2004 (“Labour Act”);National Industrial Court of Nigeria Act 2006 (“NICN”); andFederal laws enacted by the National Assembly (Nigeria’s national legislative houses) that relate to labor and employment, pension, and workplace compensation

4. Federal LawsThe Pension Reform Act 2014, which regulates the contributory pension scheme;The Personal Income Tax Act (Chapter P8 LFN 2004, as amended by the Personal Income Tax (Amendment) Act 2011), which regulates the taxation of employees’ remuneration;The Employees’ Compensation Act 2010, which regulates the payment of compensation to employees who suffer occupational diseases or sustain injuries arising from accidents in the workplace or during employment;The Industrial Training Fund Act (Chapter I9 LFN 2004, as amended), which requires employers to contribute 1% of their annual payroll to the Industrial Training Fund created by the act;The Immigration Act 2015, which regulates the employment of foreign nationals;The National Health Insurance Scheme Act (Chapter N42 LFN 2004), which established the national health insurance scheme; andThe Trade Unions Act (Chapter T14 LFN 2004, as amended), which regulates the organisation of trade unions and their activities.

5. Employee/Independent Contractor ClassificationTwo broad categories of employees in Nigeria:“Workers” defined under the Labour Act as those “who are generally employees who perform manual labor or clerical work”; and employees who perform administrative, executive, technical or professional functions (referred to as “Non-workers”)Labour Act is limited in its scope of application as it regulates only the employment of ‘workers’

6. Employee/Independent Contractor Classification (conti.)Specific rules regarding employee/contractor classification: Other than the Labor Act, no specific law sets out what factors would be considered in ascertaining whether an individual is an employee or an independent contractor. See SS Co Ltd v Afropak (Nig) Ltd ((2008) 18 NWLR 77 at p82) the Supreme Court prescribed the following criteria to provide guidance in making this determination:the mode of payment;ownership of the equipment, tools or instruments used in providing the services;the ability to delegate duty;the hours of work;the place where the work is carried out; andthe provision of office accommodation and a secretary.

7. Distinction Btw Local and Foreign NationalsAn employer which wishes to employ foreign nationals must obtain a specific authorisation from the Nigeria Immigration Service for approvalthe maximum number of foreign nationals the employer can engage;their job designations and the duration of such employment;employers must show that there are no suitably qualified Nigerian employees for the positions to be occupied by foreign nationals; andwhere approval is granted, local nationals are expected to be trained to fill the positions over time;these requirements do not apply to the employment of local nationals and nationals of member states of the Economic Community of West African States (ECOWAS).

8. Terms and Conditions of Employment Form of Contracts of Employment for workers:oral or writtenexpress or implied. Exception in Section 7 of the Labor Act requires every employer to issue a written contract within three (3) months of the commencement of an employment relationshipForms of Contract of Employment for non-workers:With respect to non-workers, no statutory requirements for employment contracts to be in writing. Precedence shows employers enter written contracts for ease of reference and clarity of employment terms

9. Terms and Conditions (conti.)Express Terms:Subject to provisions of the Labor Act. Applicable to “workers” onlyTerms and Conditions of non-workers are primarily subject to the terms of their respective employment contracts Implied Terms:- Applicable in contract of employment in Nigeria. Examples are Employer’s duty to provide work to employees, and to provide a safe place to workMinimum employment terms and conditions set down by law:- The Labor Act prescribes the minimum terms and conditions of employment that employers must comply with in relation to workers

10. Employee Representation and Industrial RelationsThe Trade Unions Act, Chapter T14, Laws of the Federation of Nigeria 2004 (“TUA”) generally governs the activities of trade unions in NigeriaTrade unionism does not apply to employees holding management positionsTrade Union RightsNegotiate terms and conditions of employment with employers;Embark on an industrial strike action; andEngage in peaceful picketing

11. Employee Representation and Industrial Relations(conti.)The TUA prohibits trade unions from carrying out a strike or lock-outException to rules governing a trade union’s right to take industrial actionNot engaged in the provision of essential services;The strike or lock-out is in relation to a labor dispute;The strike or lock-out concerns a dispute arising from a collective and fundamental breach of employment contract on the part of an employee, trade union, or an employer;Compliance with TUA arbitral provisions; andA simple majority of all registered members voted to go on strike

12. Employee Representation and Industrial Relations(conti.)

13. Termination of EmploymentNotice - Employers must give notice of the termination of employment, but an employer may elect to make a payment in lieu of the notice- Section 11 of the Labour Act prescribes statutory notice periodsProtections- Employees may challenge their dismissal by instituting an action at the National Industrial Court of Nigeria (“NICN”)

14. Emerging TrendsThe introduction of the concept of ‘constructive dismissal’ or ‘constructive termination’ of employment and the award of damages for wrongful termination; Right to appeal NICN decisions. Next resort available to employees- the Court of Appeal; andThe re-evaluation of ‘triangular’ employment arrangements

15. ConclusionUp-to-date on employment laws and regulationsEmployers and investors in the private sector generally have little cause to worry about trade union activities by employees, provided that the employers:pay reasonably decent wages and allowances;strive to maintain fair working conditions;desist from unfair labour practices; andencourage dialogue with the trade unions.

16. Referenceshttps://www.lexology.com/library/detail.aspx?g=a129b4ab-faaf-412c-995e-4d3502fceb54https://iclg.com/practice-areas/employment-and-labour-laws-and-regulations/nigeriahttp://tucnigeria.org.ng/www.punchng.comwww.depositphotos.com