NIGERIA Law and Practice Contributed by: Adekunle Obebe and Tade Leo-Adegun, Bloomfield LP
It is important to note that the Labour Act generally prohibits women and young persons from engaging in night work in the industrial and agricultural sectors. Therefore, flexible working arrangements must adhere to these restrictions. While the Labour Act specifically applies to workers, it is generally expected to serve as a guideline for employers when setting work hours. Terms Required for Part-Time Contracts Section 7 of the Labour Act requires the inclusion of the following terms for workers: • the nature of the employment; • the duration of the employment; • the appropriate notice period; • the rates of wages and calculation thereof, and the manner and periodicity of payment of wages; • terms and conditions relating to hours of work and overtime; • statutory entitlements including leave, leave requirements and any provisions for sick pay, and maternity leave for female workers, etc; and • any special conditions of the contract. Employers may adopt similar terms for part-time employees. Overtime The Labour Act defines overtime as any work per - formed beyond the normal working hours stipulated in the agreement or contract between the employer and employee. The Labour Act does not mandate a specific limit on overtime hours or prescribe a set rate for overtime pay. Regulation on overtime is minimal beyond this defi - nition. Generally, the preferred approach is for the employer and employee to mutually agree on the rate of overtime compensation in the employment con - tract. 1.4 Compensation The Federal Government of Nigeria (FGN) has approved a new minimum wage threshold for Nigerian workers. This new development was confirmed in the statement from the Office of the Minister of Informa -
tion announced on Thursday, 18 July 2024. The Exec - utive Bill for this wage adjustment was presented to the National Assembly by Tuesday, 23 July 2024. The National Minimum Wage, as approved by the federal government, is NGN70,000 (USD43). Thirteenth-month salaries and bonuses are not stip - ulated benefits under the law. These payments are typically outlined in employment contracts and can be determined by mutual agreement between the employer and employee. The agreement between the parties also determines whether such payments shall be mandatory or at the discretion of the employer, and under which circumstances they may be paid. 1.5 Other Employment Terms Vacation/Leave in Nigeria The Labour Act outlines the following provisions regarding leave and benefits. • Workers with at least 12 months of service are entitled to a minimum of six working days of annual leave with full pay. • Annual leave can be accumulated for up to two years with mutual agreement. • Employers cannot provide monetary compensation instead of leave, except upon termination. • Public holidays during annual leave do not count against leave entitlement. • Leave allowance is not mandated by law but may be provided as per contracts or company policies. • There is no standard or mandated leave allow - ance calculation. Leave allowance varies from one employer to another based on the contract. • A worker is entitled to up to 12 working days of paid sick leave per calendar year for temporary ill - ness certified by a registered medical practitioner. • Women are entitled to 12 weeks of maternity leave, with six weeks taken before delivery and six weeks after. During this period, they should receive at least 50% of their salary. Some states may have different maternity leave regulations. • A nursing mother is permitted half an hour, twice a day during working hours, to nurse her child. • Paternity leave is not provided under the Labour Act but is approved by the federal government for men working in public service or federal roles. Some states in Nigeria, namely Enugu and Lagos,
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