NIGERIA Law and Practice Contributed by: Adekunle Obebe and Tade Leo-Adegun, Bloomfield LP
1. Employment Terms 1.1 Employee Status There are two formally recognised employment cat - egories, namely “workers” and “employees”. Workers Workers, as defined by the Nigerian Labour Act, encompass those who perform manual labour or cleri - cal work. This category includes casual workers, con - tract staff and part-time workers. They may engage in physical tasks like construction, manufacturing and maintenance. Workers are entitled to the basic mini - mum protections prescribed under the Labour Act. Accordingly, employment contracts issued to workers are required to comply with the statutory minimum terms and conditions set out therein. In any instance where a contract of employment with a worker fails to meet such requirements, the relevant provisions of the Labour Act shall prevail. Employees Under the Labour Act, any individual engaged in administrative, executive, technical or professional functions is not a worker and is not covered under the Labour Act. Such persons are commonly referred to as employees. They typically work under formal employment contracts. Examples include full-time managers, engineers and lawyers. Other Statuses Apart from employees and workers, independent con - tractors form another significant category within the Nigerian labour market. These individuals, such as freelancers, operate without formal employee status or the full statutory protections provided to workers. They negotiate contracts for specific services and operate more independently within their respective professions. 1.2 Employment Contracts There are three basic types of employment contracts. • Full-time/permanent/indefinite employment con - tract – This type of contract provides indefinite employment with no set end date. Permanent employees are entitled to benefits such as health
insurance, pensions and paid vacations, in addition to their wages. • Fixed-term/definite employment contract – This type of contract specifies a predetermined duration for the employment, typically for a specific project or period. Fixed-term employees may receive simi - lar benefits to permanent employees but only for the contract’s duration. • Part-time employment contract – This type of contract is entered into for employment with fewer working hours than a full-time position. Such contracts may also be for a definite or indefinite period. Requirement of Contracts Section 7 of the Labour Act requires employers to issue a written contract to workers within three months of starting the employment relationship. For employees, while there is no statutory requirement for contracts to be in writing, it is highly advisable to have written contracts. Written contracts provide clar - ity and serve as a reference point, forming the basis of the formal employment relationship between the parties. 1.3 Working Hours The Labour Act does not stipulate maximum work - ing hours for workers. However, guidance is generally derived from the ILO Hours of Work Convention, 1919, which limits work hours in industrial undertakings to eight hours per day and 48 hours per week. The Labour Act also permits flexible arrangements, stating that normal working hours can be determined: • by mutual agreement; • by collective bargaining within the organisation or industry concerned; or • by an industrial wages board, established by rel - evant legislation, where there is no machinery for collective bargaining. Flowing from the above, the Labour Act allows for flexible working arrangements within the legal limit of eight hours per day.
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