Many employers in Nigeria may not be taking the necessary steps to protect themselves when drafting compliant employment contracts. In view of this, we’ve highlighted everything you need to know to draft employment contracts that comply with Nigerian labour laws.
Why Your Employment Contracts Matter
Understanding the intricacies of employment contracts in Nigeria is essential for maintaining a protected, compliant, and harmonious workplace. A well-constructed contract also serves as a guide should any disputes arise between you and your employees.
Key Elements of a Valid Employment Contract
In accordance with the Nigeria Labour Act of 2004, a valid employment contract should include the following essential components:
- Parties to the Contract: Clearly identify the employer and employee.
- Job Description: Outline the employee’s duties and responsibilities.
- Commencement Date: Specify the start date of employment.
- Remuneration: Detail salary, allowances, and payment frequency.
- Working Hours: Specify standard hours, overtime, and rest periods.
- Leave Entitlements: Include annual leave, sick leave, maternity/paternity leave, and public holidays.
- Termination Clause: Define notice periods and conditions for dismissal.
- Confidentiality Clause: Protect your business’s confidential information.
- Dispute Resolution: Include mechanisms for resolving disputes.
Additional Considerations
- Written Contract: Ensure your employment contract is always in writing.
- Clarity & Specificity: Contracts should be clear, concise, and specific.
- Compliance with Labour Laws: Adhere to all Nigerian labour regulations.
- Regular Review: Periodically review contracts to keep them relevant and up-to-date.
- Incorporate Company Policies: Include any relevant internal policies.
- Employee Benefits: Clearly outline benefits such as health insurance, pensions, or bonuses.
Common Mistakes to Avoid
We’ve observed some common mistakes in employment contracts, including:
- Vague or ambiguous terms.
- Unfair clauses.
- Non-compliance with labour laws.
- Lack of clarity on termination terms.
Bonus Tip
According to the Nigeria Labour Act of 2004, employers must provide a written contract within three months of an employee starting their role.
Final Remarks
By ensuring your contracts include these essential components and avoiding common pitfalls, you can create legally sound agreements that protect both you and your employees.
Bolaji is a luminary in the realms of HR/Talent Acquisition, Technology Solution and Real Estate Consulting. With a distinguished career as both an industry expert and accomplished author, I’m celebrated for my expertise in seamlessly blending human capital with cutting-edge technology, and also providing professional advisory support for businesses of all sizes.