Introduction
Labour and employment laws are crucial and important to every organization in today’s dynamic business environment. Several organizations have been involved in various industrial disputes and court cases, resulting in them having to pay substantial fines and compensation to their workers.
The Labour Act, which is the principal legislation that regulates the employment of persons in Nigeria, prescribes the minimum terms and conditions of employment and is limited in its scope as it applies only to workers.
The terms and conditions of employment of non-workers are primarily subject to the terms of their respective contracts of employment. The other laws, which regulate the employment of persons in Nigeria, do not make a distinction between different categories of employees.
From a legal perspective, there are two broad categories of employees in Nigeria:
– “Workers,” who are defined under the Labour Act as those “who are generally employees who perform manual labour or clerical work,”
– “Employees” who perform administrative, executive, technical, or professional functions (referred to as “non-workers”).
Employment/Labour Law
The main sources of employment law in Nigeria are as follows:
- The Constitution of the Federal Republic of Nigeria 1999 (as amended) (the “Constitution”).
- The Labour Act, Chapter L1, Laws of the Federation of Nigeria 2004 (“Labour Act”);
- Federal Laws enacted by the National Assembly (Nigeria’s National Legislative Houses) and the State Laws enacted by the House of Assembly (The State Legislative Authority) of each state that relate to labour and employment, pensions and workplace compensation include the following:
- Employees’ Compensation Act 2010.
- HIV and AIDS (Anti-Discrimination) Act 2014.
- Immigration Act, 2015.
- Industrial Training Fund Act, Chapter 19, LFN 2004 (as amended).
- National Health Insurance Authority Act 2022.
- National Housing Fund Act, Chapter N45, LFN 2004.
- Pension Reform Act 2014.
- Trade Disputes Act, Chapter T8, LFN 2004.
- Trade Unions Act, Chapter T14, LFN 2004, as amended by the Trade Union (Amendment) Act 2005.
- National Minimum Wage (Amendment) Act 2019.
- National Industrial Court Act 2006.
- Factories Act, Chapter F1, LFN 2004.
- Finance Act, 2021.
- Personal Income Tax Act, Chapter P8, LFN 2004 (as amended by the Personal Income Tax (Amendment) Act, 2011).
- Discrimination Against Persons with Disabilities (Prohibition) Act, 2018.
- Lagos State Special Peoples Law 2011.
- Nigerian Oil and Gas Industry Content Development Act 2010.
- Guidelines for the Release of Staff in the Nigerian Oil and Gas Industry 2019 issued further to the provisions of the Petroleum (Drilling and Production) Regulations 1969 (as amended), made pursuant to the Petroleum Act, Cap P10, LFN 2004 (now the Petroleum Industry Act, 2021).
- Nigeria Data Protection Regulation 2019 was issued by the National Information Technology Development Agency.
In conclusion, there are laws that regulate working conditions but they are not well enforced even in the formal sector. Workers’ rights are routinely violated with impunity. The occupational health and safety standards are poorly enforced, as are rulings on labor violations.
Watch out for the next blogs on Labour/Employment Laws