At a glance: termination of employment in Nigeria

Legislation and agencies

Primary and secondary legislation

What are the main statutes and regulations relating to employment?

The main statutes relating to employment in Nigeria are:

• the Labour Act, which primarily governs employment for manual labour purposes;
• the Constitution;
• the Employees Housing Schemes (Special Provisions) Act;
• the Factories Act;
• the Employee's Compensation Act 2010;
• the Trade Union (Amendment) Act;
• the Trade Disputes Act;
• the Civil Service Rules;
• the Nigeria Social Insurance Trust Fund Act;
• the Pension Reform Act 2014;
• the Federal Competition and Consumer Protection Act 2018;
• the National Health Insurance Act 2022;
• the Business Facilitation Act 2022;
• the Nigeria Data Protection Act 2023; and
• the Finance Act 2020.

Protected employee categories

Is there any law prohibiting discrimination or harassment in employment? If so, what categories are regulated under the law?

There is no legislation specific to employment that prohibits discrimination in employment. However, this is generally provided for under section 42 of the Constitution, which gives every citizen the right to freedom from discrimination regardless of his or her ethnic group, place of origin, sex, religion or political opinion.

Also, section 17(3)(e) of the Constitution provides that the state shall direct its policy to ensure that there is equal pay for equal work without discrimination on account of sex or any other grounds.

The Nigerian Industrial Court (NIC) included four categories of actions in the NIC Civil Procedure Rules 2017 that it classifies as workplace sexual harassment. These are:

• physical conduct of a sexual nature (eg, unwanted physical contact ranging from touching to sexual assault and rape, strip searches by or in the presence of the opposite sex, or gestures that constitute sexual harassment);
• verbal sexual harassment (eg, unwelcome innuendoes, suggestions, hints, sexual advances, comments with sexual overtones and sex-related jokes or insults; unwelcome graphic comments about a person's body; unwelcome and inappropriate enquiries about a person's sex life; and unwelcome whistling at a person or group of persons, as well as any document, material or exhibit in further support of the claim);
• non-verbal sexual harassment (eg, unwelcome gestures, indecent exposure or unwelcome display of sexually explicit pictures and objects); and
• quid pro quo harassment, during which an owner, employer, supervisor, member of management or co-worker undertakes, or attempts, to influence or influences the process of employment, promotion, training, discipline, dismissal, salary increments or other benefits of an employee or job applicant in exchange for sexual favours.

Additionally, Order 14 of the NIC Civil Procedure Rules 2017 reveals that any of the following situations, among others, qualify as workplace sexual harassment:

• asking for sex in exchange for a benefit or favour;
• repeatedly asking for dates and not taking 'no' for an answer;
• a strip search by or in the presence of the opposite sex;
• making unnecessary physical contact, including unwanted touching;
• using rude or insulting language, or making comments, towards women;
• calling women sex-specific derogatory names;
• making sex-related comments about a person's physical characteristics or actions;
• posting or sharing pornography, sexual pictures or cartoons, explicit graffiti or other sexual images (including online); and
• making sexual jokes.

Any worker who is subjected to any of the above can institute an action at the NIC seeking, among other resolutions, relief, which includes monetary compensation, damages and injunctions.

Enforcement agencies

What are the primary government agencies or other entities responsible for the enforcement of employment statutes and regulations?

The primary judicial body charged with this responsibility is the NIC, which is empowered to settle employment-related disputes within Nigeria. The Ministry of Labour is also statutorily empowered to perform oversight functions on issues pertaining, but not limited, to trade disputes, collective bargaining and outsourcing. The Nigerian Content Development and Monitoring Board also carries out oversight functions in the Nigerian oil and gas industry with a view to ensuring a measurable and continuous growth of Nigerian content in all oil and gas arrangements, projects, operations, activities or transactions in Nigeria, including the employment of expatriates and indigenous employees.

Worker representation

Legal basis

Is there any legislation mandating or allowing the establishment of employees’ representatives in the workplace?

The Trade Union Act allows for the formation of trade unions for Nigerian employees. Membership of a trade union is voluntary, and no employee must be forced to join any trade union or be victimised for refusing to join or remain a member.

Powers of representatives

What are their powers?

Trade unions are empowered to regulate the terms and conditions of employment for workers who are in their membership. This may include actions taken in furtherance of a trade dispute, strike actions, lockouts and collective bargaining.

Background information on applicants

Background checks

Are there any restrictions or prohibitions against background checks on applicants? Does it make a difference if an employer conducts its own checks or hires a third party?

There are no restrictions against background checks on applicants. However, this is subject to section 37 of the Constitution, which guarantees a right to privacy for citizens in respect of their correspondence, telephone conversations and electronic communications. Further, section 25 of the Nigerian Data Protection Act 2023 recognises that data controllers (which could include employers) can process data of a subject (including employees) for its legitimate interests, provided that it does not breach the fundamental rights and interests of the subject, it does not conflict with other lawful bases except consent, and the data subject reasonably expects their data to be processed in the intended manner.

Medical examinations

Are there any restrictions or prohibitions against requiring a medical examination as a condition of employment?

Although not expressly stipulated under Nigerian law, these concerns are governed by the contract of employment between an employer and an employee. Therefore, once stipulated therein, the employee becomes bound by such terms.

Further, people living with HIV or AIDS in Nigeria are protected by legislation and judicial precedent. The legal position in Nigeria is that mandatory HIV testing of employees is discriminatory.

Drug and alcohol testing

Are there any restrictions or prohibitions against drug and alcohol testing of applicants?

This is not expressly stipulated under Nigerian law. These concerns are governed by the contract of employment between an employer and an employee. Therefore, once stipulated therein, the employee is bound by such terms.

Hiring of employees

Preference and discrimination

Are there any legal requirements to give preference in hiring to, or not to discriminate against, particular people or groups of people?

There are provisions of law under the Labour Act and the Constitution that prohibit discrimination of all forms in employment.

However, there are no legal requirements under Nigerian law that give preference to hiring particular groups of people. These provisions are more applicable to federal employment and appointments that stipulate the principle of federal character that must be applied to ensure that appointments to public service institutions (exclusively) fairly reflect the linguistic, ethnic, religious and geographical diversity of the country.

Further, the Discrimination against Persons with Disabilities (Prohibition) Act 2018 prohibits discrimination against individuals with disabilities in various spheres, including employment.

Additionally, following the amendments to the Nigerian Constitution in 2011, the National Industrial Court (NIC) now has the authority to apply ratified international treaties concerning labour matters in Nigeria. While there have not been significant changes in the laws on discrimination, the application of international principles by the NIC in recent times has introduced a more nuanced approach to addressing discriminatory practices in the workplace.

Written contracts

Must there be a written employment contract? If yes, what essential terms are required to be evidenced in writing?

The Labour Act, which governs unskilled workers, specifies that the employer shall give the worker a written statement or contract not later than three months after the beginning of the worker's period of employment.

Contracts of employment must be in writing and must contain:

• the name of the employer or group of employers and, where appropriate, of the undertaking at which the worker is employed;
• the name and address of the worker, and the place and date of his or her engagement;
• the nature of the employment;
• if the contract is for a fixed term, the date on which the contract expires;
• the appropriate period of notice to be given by the party wishing to terminate the contract;
• the rates of wages and method of calculation thereof, and the manner and periodicity of the payment of wages; and
• any terms and conditions relating to hours of work, holidays and holiday pay, and incapacity to work owing to sickness or injury, including any provisions for sick pay.

Fixed-term contracts

To what extent are fixed-term employment contracts permissible?

Fixed-term contracts are permissible under Nigerian law, and there is no stipulation as to the maximum permissible duration for such contracts.

Probationary period

What is the maximum probationary period permitted by law?

There are no provisions for probationary periods under the Labour Act; where they are in operation, they are stipulated under the relevant employment contract. The Supreme Court of Nigeria has upheld the validity of probationary periods.

Classification as contractor or employee

What are the primary factors that distinguish an independent contractor from an employee?

The main distinguishing features are the general conditions of employment and the related benefits available provided in the engagement contract. In SS Co Ltd v Afropak (Nig) Ltd, the Supreme Court of Nigeria prescribed the following criteria to provide guidance in making this determination:

• the place where the work is carried out;
• ownership of the equipment, tools or instruments used in providing the services;
• the hours of work;
• the ability to delegate duty; and
• whether or not office accommodation or secretaries are provided.

Temporary agency staffing

Is there any legislation governing temporary staffing through recruitment agencies?

The Labour Act and judicial precedent provide that all employees must have a contract of employment within three months of engagement. However, no legislation states any other stipulations of employment and, as such, temporary staffing is governed by contracts of employment with temporary employees.

Foreign workers

Visas

Are there any numerical limitations on short-term visas? Are visas available for employees transferring from one corporate entity in one jurisdiction to a related entity in another jurisdiction?

Short-term visas are available to foreign nationals required in Nigeria for work purposes on a short-term basis, whether or not they are transferring from an entity in one jurisdiction to an entity in another.

There is no numerical limitation on these visas. However, where a short-term visa is granted, it is valid for 60 days and can be extended for a further period of 60 days. Once this is exhausted, the foreign national must exit the country and apply for another short-term visa.

The other applicable visa is the Subject to Regularization visa, which grants foreign nationals who are required in Nigeria for employment purposes on a long-stay visa and residence rights within Nigeria. The visa, once issued, is regularised upon arrival in Nigeria to obtain the long-term work and residence permit, which is valid for one to two years and renewable upon expiration.

Spouses

Are spouses of authorised workers entitled to work?

Generally, spouses on the dependant visa or permit are not authorised to work. To work, the spouse must have working and residence rights in Nigeria.

General rules

What are the rules for employing foreign workers and what are the sanctions for employing a foreign worker who does not have a right to work in the jurisdiction?

Every company that seeks to employ foreign workers must apply for the grant of an expatriate quota, which is renewable every two years. Every foreign national intending to work in Nigeria must have valid working and residence permits (ie, the Combined Expatriate Residence Permit and Alien Card, which is applicable to foreign workers from the Economic Community of West Africa States), which are usually applied for by the company seeking to employ the foreign national.

The sanctions applicable for the absence of these permits are imposed on the company by default and the foreign worker who is in Nigeria without the requisite permit.

Resident labour market test

Is a labour market test required as a precursor to a short or long-term visa?

Yes. Before the grant of an expatriate quota, the company must show that the required labour is not currently available in the Nigerian market and, as a result, the employment of foreign labour is required.

Terms of employment

Working hours

Are there any restrictions or limitations on working hours and may an employee opt out of such restrictions or limitations?

The Labour Act generally does not specify working hours, except for young persons aged 16, whom the law mandates cannot work in excess of eight hours daily. The Labour Act recognises that normal working hours shall be determined by mutual agreement or by collectively bargaining with all employees within the establishment; hence, an employer may resolve to create rules on normal working hours and overtime and payment for overtime either by mutual agreement with each employee or by collectively bargaining with all employees within the establishment. An employer, in formulating overtime policies, should take into consideration that the general understanding is that full-time hours in Nigeria amount to 40 hours per week. Anything in excess of the fixed normal working hours by which the employee agrees to be bound will generally be considered overtime. It is germane to state that there are no statutory provisions on the overtime work limit and overtime pay. Overtime compensation is entirely a matter of mutual agreement through an employment contract or a collective bargaining agreement, or through an order from the industrial wages board. Some employers, in a bid to evade overtime pay, state expressly in each employee's contract of employment (especially for skilled, professional and managerial employees) that payment for overtime is deemed to have already been factored into their salaries or financial benefits.

Overtime pay - entitlement and calculation

What categories of workers are entitled to overtime pay and how is it calculated?

Nigerian law does not stipulate the categories of workers to which this is applicable, nor does it stipulate the schedule of payment for overtime.

Overtime pay - contractual waiver

Can employees contractually waive the right to overtime pay?

As the provisions of employment contracts govern the payment of overtime allowances, this may be permissible upon agreement by the parties, the employer and the employee.

Vacation and holidays

Is there any legislation establishing the right to annual vacation and holidays?

The Labour Act provides for mandatory annual leave. The Labour Act provides that every employee shall be entitled to a period of annual leave with full pay after 12 continuous months of service, for a minimum of six working days. For employees outside the scope of the Labour Act (ie, skilled, professional and managerial employees), there is no statutory provision regulating annual leave, but the norm is 15 to 20 working days during every 12 months of service, usually with pay. In many cases, there is also a leave allowance ranging from 50 to 100 per cent of monthly pay.

Sick leave and sick pay

Is there any legislation establishing the right to sick leave or sick pay?

The Labour Act provides that workers are entitled to a maximum of 12 working days of paid sick leave. The employee must, however, furnish the employer with a medical report, certified by a registered medical practitioner. Sick leave is fully paid and is calculated based on the worker's basic wage exclusive of overtime pay and other allowances.

There is no statutory entitlement to parental leave, paternity leave or leave to care for sick family members. The only statutory forms of leave are sickness, maternity and annual leave.

For employees outside the scope of the Labour Act, the contract of employment (together with the employee manual or handbook and other judicial decisions) determines sick leave. Conventional practice is that such employees are entitled to nine to 12 weeks of sick leave; in many cases, bereavement leave of up to one week; and other forms of compassionate leave that may range from one to two weeks. Each employer generally sets its own rules but typically adopts the Labour Act at a minimum and exceeds its mandatory provisions depending on how employee-friendly the employer wants to be regarded.

Leave of absence

In what circumstances may an employee take a leave of absence? What is the maximum duration of such leave and does an employee receive pay during the leave?

The Labour Act provides only for three statutory forms of leave: sickness, maternity and annual leave. Workers are entitled to a maximum of 12 working days of paid sick leave. The employee must, however, furnish the employer with a medical report, certified by a registered medical practitioner. Sick leave is fully paid and is calculated based on the worker's basic wage exclusive of overtime pay and other allowances.

Pregnant female workers are entitled to take maternity leave for 12 weeks six weeks prior to delivery, provided that they produce a medical certificate given by a registered medical practitioner stating that their confinement will probably take place with the six weeks and six weeks after delivery. Such employees on maternity leave who have been in continuous service for their employers for at least six months preceding the leave are entitled to pay of at least 50 per cent of their wages.

For employees outside the scope of the Labour Act, the contract of employment (together with the employee manual or handbook and other judicial decisions) determines sick leave. Conventional practice is that such employees are entitled to eight to 12 weeks of sick leave; in many cases, bereavement leave of up to one week; and other forms of compassionate leave that may range from one to two weeks. Each employer generally sets its own rules but typically adopts the Labour Act at a minimum and exceeds its mandatory provisions depending on how employee-friendly the employer wants to be regarded.

Mandatory employee benefits

What employee benefits are prescribed by law?

Group life insurance policy

The Pension Reform Act 2014 makes it mandatory for an employer to procure, at its own cost, a group life insurance policy in favour of each employee for a minimum of three times the annual total emolument of the employee. It further stipulates that defaulting employers shall be liable for claims arising from the death of an employee should they fail to arrange compulsory group life insurance cover for their employees. This applies to employers of all categories of employees.

Transportation

The Labour Act makes it mandatory for an employer to provide either free transportation or an allowance in lieu where an employee engaged in clerical, manual or unskilled work is required to travel 16 kilometres or more from his or her normal place of work to another worksite. If the employer provides a vehicle or vessel for this purpose, it must ensure that it is suitable, in a good sanitary condition and not overcrowded.

Housing

Under Nigerian law, the provision for housing benefit is not stipulated as mandatory for employers to provide to employees, save for foreign (expatriate) employees, who are to be provided with a housing allowance.

Health, safety and occupational hazards

The Employee's Compensation Act 2010 provides for an employees' compensation scheme. This is essentially insurance for occupational injuries and illnesses for all employees. It is a scheme based on an employees' compensation fund and is administered by the Nigeria Social Insurance Trust Fund. The Employee's Compensation Act 2010 provides compensation for employees who sustain injuries or become disabled because of an accident, or contract an occupational disease, in the course of employment, whether at their usual place of work or elsewhere. Accidents include those sustained on the journey between the place of work and the employee's home or the place where the employee usually spends mealtimes or receives remuneration.

Medical insurance

The Labour Act provides that an employer that has a minimum of 10 employees may, together with every person in its employment, pay contributions under the National Health Insurance Scheme. This provision is not mandatory but is suggested in legislation. However, the National Health Insurance Authority Act 2022 mandates employers with five staff or more, either in the private, public formal or informal sector, to obtain a health insurance policy and pay contributions into the scheme on behalf of their employees.

Part-time and fixed-term employees

Are there any special rules relating to part-time or fixed-term employees?

There are no special rules relating to part-time or fixed-term employees, as they are governed by the terms of their contracts with their employers. However, it is typical for part-time employees to be exempted from employment benefits by virtue of their employment contracts.

Public disclosures

Must employers publish information on pay or other details about employees or the general workforce?

There is no provision mandating the publishing of such information under Nigerian law.

Post-employment restrictive covenants

Validity and enforceability

To what extent are post-termination covenants not to compete, solicit or deal valid and enforceable?

Post-termination covenants not to compete, solicit or deal are only valid where:

• they are expressly agreed upon by the employer and the employee in the contract between them; and
• the term of the restriction does not exceed two years.

Post-employment payments

Must an employer continue to pay the former employee while they are subject to post-employment restrictive covenants?

Generally, this is not the case under Nigerian law, as remuneration is tied to the duration of employment under the employment contract. Once the employee resigns or the employment contract is terminated, there is no obligation to continue to pay the employee.

Liability for acts of employees

Extent of liability

In which circumstances may an employer be held liable for the acts or conduct of its employees?

The concept of vicarious liability is stated under Nigerian law and implied in Nigerian employment contracts. An employer is generally held liable for any acts performed by the employee within the scope of the employment contract.

Taxation of employees

Applicable taxes

What employment-related taxes are prescribed by law?

Personal income tax

This is a compulsory tax applicable to all classes of employees and is based on provisions contained in the Personal Income Tax Act. All income from employment derived from Nigeria shall be taxable and remitted to the Board of Internal Revenue of the state in which its registered office address is located.

Contributory pension scheme under the Pension Reform Act 2014

Under this scheme, the employer will be expected to deduct pension contributions for onward remittance to the retirement savings account of an employee. The Pension Reform Act 2014 applies to all categories of employees. It provides that every employee must contribute a minimum of 8 per cent from his or her salary, which the employer withholds, while a minimum contribution of 10 per cent is imposed on employers (which is not deducted from employees' pay). It further provides for a 20 per cent contribution by an employer that chooses to contribute fully to the scheme.

National Housing Fund scheme

This scheme mandates employees in the public sector that earn the national minimum wage or more to make a compulsory contribution of 2.5 per cent of their salary on a monthly basis to the National Housing Fund scheme. This contribution is now optional for employees in the private sector.

Employee-created IP and confidential business information

Ownership rights

Is there any legislation addressing the parties’ rights with respect to employee inventions?

Section 2(4) of the Patent and Designs Act states that, where an invention is made in the course of employment or the execution of a contract for the performance of specified work, the right to a patent of the invention is vested in the employer or, as the case may be, in the person who commissioned the work.

Trade secrets and confidential information

Is there any legislation protecting trade secrets and other confidential business information?

There is no specific legislation offering such protections. However, non-disclosure agreements between parties ensure that the confidentiality of information is maintained.

Data protection

Rules and employer obligations

Is there any legislation protecting employee privacy or personnel data? If so, what are an employer’s obligations under the legislation?

There is no specific legislation protecting employee privacy. However, section 37 of the Constitution enshrines the right to privacy of individuals (including employees).

Further, the Nigeria Data Protection Regulation 2019 prohibits an employer from using an employee's personal data for purposes outside those for which the employee already consented. In addition, although the Nigeria Data Protection Act 2023 permits employers to process employee data for the purpose of legitimate interest, it is subject to the condition that such data processing does not override the fundamental rights, freedom and interest of the employee; such processing is not incompatible with other lawful bases for processing such as consent; and the employee has a reasonable expectation that the data will be processed in such a manner.

Privacy notices

Do employers need to provide privacy notices or similar information notices to employees and candidates?

Paragraph 2.3 of the Nigeria Data Protection Regulation 2019 provides that no data of any individual shall be collected without the individual's consent. Further, paragraph 2.5 of the Regulation also mandates that a conspicuous privacy policy or notice shall be displayed at the medium through which data is collected.

Employee data privacy rights

What data privacy rights can employees exercise against employers?

Employees can exercise the rights to:

• request from the employer access to and rectification or erasure of personal data, or restriction of the processing of data concerning the employee;
• object to the processing of data concerning the employee;
• data portability;
• withdraw consent at any time, without affecting the lawfulness of data processing based on consent before its withdrawal;
• lodge a complaint with a relevant authority;
• be informed where the employer intends to further process the personal data for a purpose other than that for which the personal data was collected;
• be informed when the employer intends to transfer personal data to a recipient in a foreign country or to an international organisation; and
• not be subjected to a decision based solely on automated processing of personal data, including profiling.

Business transfers

Employee protections

Is there any legislation to protect employees in the event of a business transfer?

Such protections are afforded under industry-specific legislation; there is no overarching central legislation. For example, under the Investment and Securities Act, provisions applicable to the merging of companies stipulate that, where a merger is to be engaged in, the consent of the trade union or employee representatives representing most of the employees must be sought.

Termination of employment

Grounds for termination

May an employer dismiss an employee for any reason or must there be ‘cause’? How is cause defined under the applicable statute or regulation?

Generally, an employer has the right to terminate the employment of an employee. However, under a recent decision of the Nigerian Industrial Court, an employer must state the reason for the termination.

Concerning dismissal, an employer has the right to dismiss an employee when the conduct of the employee is of a serious and weighty nature. This would include offences with a criminal element, such as fraud, assault and sexual harassment. Other offences include dereliction of duty and gross insubordination. Where an employer dismisses an employee, the employer is duty-bound to justify the dismissal from employment and establish that the requisite investigation procedure was adhered to. Contrary to the earlier position, which provided for automatic forfeiture of all entitlements due to the employee in the event of dismissal, the current legal position is that all earnings of an employee before the dismissal must be paid by the employer to the employee. The rule that a dismissed employee is not entitled to such earnings is largely no longer applicable in practice.

Notice requirements

Must notice of termination be given prior to dismissal? May an employer provide pay in lieu of notice?

According to the Labour Act, the employer is only bound to provide notice or payment in lieu of notice in the case of termination of employment. However, in the case of a dismissal, notice is usually not given.

Dismissal without notice

In which circumstances may an employer dismiss an employee without notice or payment in lieu of notice?

An employer has the right to dismiss an employee without notice or payment in lieu of notice when the conduct of the employee is of a serious and weighty nature. This would include offences with a criminal element, such as fraud, assault and sexual harassment. Other offences include dereliction of duty and gross insubordination. Where an employer dismisses an employee, the employer is duty-bound to justify the dismissal from employment and establish that the requisite investigation procedure was adhered to. Contrary to the earlier position, which provided for automatic forfeiture of all entitlements due to the employee in the event of dismissal, the current legal position is that all earnings of an employee before the dismissal must be paid by the employer to the employee. The rule that a dismissed employee is not entitled to such earnings is largely no longer applicable in practice.

Severance pay

Is there any legislation establishing the right to severance pay upon termination of employment? How is severance pay calculated?

Severance pay is regulated by the terms of the contract of employment and is usually calculated based on length of service, age and final salary of the employee.

Procedure

Are there any procedural requirements for dismissing an employee?

The employee should usually be notified in writing of the reasons for the dismissal and should be provided a right of response. However, there is no prior approval required for this to occur.

Employee protections

In what circumstances are employees protected from dismissal?

There are generally no circumstances in which employees may not be dismissed.

Mass terminations and collective dismissals

Are there special rules for mass terminations or collective dismissals?

This is generally not provided for under Nigerian law.

Class and collective actions

Are class or collective actions allowed or may employees only assert labour and employment claims on an individual basis?

Class actions are permitted under Nigerian law based on the commonality of a cause of action by all employees within the class.

Mandatory retirement age

Does the law in your jurisdiction allow employers to impose a mandatory retirement age? If so, at what age and under what limitations?

Retirement age generally varies depending on the sector of employment. However, it generally ranges from 60 to 65 years of age.

Dispute resolution

Arbitration

May the parties agree to private arbitration of employment disputes?

This is stipulated under contracts of employment; therefore, arbitration may be offered as an option to dispute resolution.

Employee waiver of rights

May an employee agree to waive statutory and contractual rights to potential employment claims?

An employee may voluntarily choose to waive his or her rights. However, in the event of a dispute, the Nigerian Industrial Court (NIC) may choose to look into the substance of such waivers in determining the enforcement of any claims by the employer.

Limitation period

What are the limitation periods for bringing employment claims?

There are no known limitation periods for employment-related disputes at the NIC or generally under Nigerian law.

Update and trends

Key developments and emerging trends

Are there any emerging trends or hot topics in labour and employment regulation in your jurisdiction? Are there current proposals to change the legislation?

The Nigerian Industrial Court (NIC) has always treated the end users of staff contracted through outsourcing agencies as co-employers despite such end users not having an employment contract with the contracted staff.

However, in the landmark case of Total E&P Nigeria Limited v Mr Felix Adarikwu (the latter suing for himself and 257 disengaged service-contracted personnel of Total E&P Limited), the Court of Appeal, in its judgment dated 20 December 2022, held that Total E&P Nigeria Limited could not be regarded as the co-employer of the contracted staff, as it had no contract with them and was not privy to the contracts concluded between the contracted staff and the outsourcing companies.

This decision, which was largely based on the doctrine of privity of contract, implies an overturning of the precedent set by the NIC that treated outsourcing as a triangular form of employment.

Coronavirus

What emergency legislation, relief programmes and other initiatives specific to your practice area has your jurisdiction implemented to address the pandemic? Have any existing government programmes, laws or regulations been amended to address these concerns? What best practices are advisable for clients?

Law stated date

Correct on

Give the date on which the information above is accurate.