NIGERIA Law and Practice Contributed by: Adekunle Obebe and Tade Leo-Adegun, Bloomfield LP
offer paternity leave to male employees in public service. Enugu permits three weeks, while Lagos permits two weeks for the first two children of such employees. Paternity leave pay is not specified/ mandated under these regulations. While the provisions of the Act specifically cover workers, the National Industrial Court (NIC) often uses them as a standard for leave benefits for employees in Nigeria. Employers are also encouraged to adhere to international standards and best practices as the NIC has statutory authority to apply ratified international laws in its judgments. Limitations on Confidentiality and Non- Disparagement Agreements Nigeria does not have statutory provisions addressing confidentiality and non-disparagement agreements comprehensively. However, the NIC generally con - siders the following limitations when evaluating the enforceability of such agreements. • Public domain – Information that becomes publicly known through lawful means cannot be subject to confidentiality obligations. Once information is in the public domain, it loses its confidential status. • Public order, public policy or legal requirements – Confidentiality and non-disparagement agree - ments cannot override laws, public policy or legal requirements. Employees have the right to disclose information required by law or in the public interest, such as illegal activities or matters affecting public safety. • Illegality – Confidentiality clauses in employment contracts or contracts related to illegal activities are generally illegal ab initio. Courts would not enforce agreements that involve illegal activities or are against public policy. Employee Liability for Breach of Confidentiality and Non-Disparagement Agreements An employee may incur the following liabilities. • Termination of employment for breach of confiden - tiality and/or non-disparagement agreement where such can be proven and constitutes a valid ground
• Accounting for profits obtained by the employee as a result of the breach. • Contractual penalties (if specified under the con - tract). • Bearing the cost for legal action by the employer (at the discretion of the court). Limitation of liability For these liabilities to apply, the employer must be able to demonstrate that a breach occurred and provide evidence of the damages incurred or profits obtained by the employee. 2. Restrictive Covenants 2.1 Non-Competes Requirement of Reasonableness for the Validity of Non-Compete Clauses Nigerian courts emphasise the importance of reasona - bleness in non-compete agreements. The restrictions imposed by any such clause – such as geographic scope, duration and the specific line of business being restricted – must be fair and balanced. The terms must be clearly defined and proportionate to protect the legitimate business interests of the employer. Enforcement of Non-Compete Clauses The enforceability of non-compete clauses hinges on their reasonableness and their necessity to protect the employer’s legitimate business interests, rather than merely stifling competition. Each case is evaluated on its merits. For instance, in the case of Lacasera Com - pany v Mr Prahad Gangadharan , the court deemed a non-compete clause invalid and unfair for prohibit - ing the employee from accepting any job in a similar field for five years post-employment. Similarly, in 7th Heaven Bistro Limited v Mr Amit , the NIC ruled against a three-year non-compete clause deemed excessively restrictive and unfair. Courts assess factors such as the nature of the employer’s business, the employee’s access to con - fidential information or trade secrets, and the impact of the restriction on the employee’s ability to earn a livelihood.
for termination under the contract. • Damages for breach of contract.
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