NIGERIA Law and Practice Contributed by: Adekunle Obebe and Tade Leo-Adegun, Bloomfield LP
Performance-related dismissal The procedure for performance-related dismissal is as follows: • document performance issues and provide feed - back; • issue formal warnings and offer a performance improvement plan; • allow the employee time to improve their perfor - mance; and • if there is no improvement, proceed with termina - tion, ensuring the process and documentation are clear and transparent. Misconduct-related dismissal The procedure for misconduct-related dismissal is as follows: • conduct a thorough investigation of the alleged misconduct; • provide the employee with an opportunity to respond to the allegations ( Baba v NCATC (1991) 5 NWLR (Pt. 192) 388); and • based on the investigation and hearing, decide on termination for gross misconduct ( Olatunbosun v NISER Council (1988) 3 NWLR (Pt. 80) 25). Consequences Failure to follow the appropriate process or lack of val - id grounds for dismissal can lead to several adverse outcomes. • Damages – Employees may successfully claim unfair dismissal, resulting in damages awarded against the employer. • Loss of reputation – Mishandling dismissals can damage the employer’s reputation. • Legal costs – Employers may incur significant legal expenses. • Reinstatement – Courts may order the reinstate - ment of the employee to their former position. 7.4 Termination Agreements Termination agreements are permissible in Nigeria. They stand as legally binding contracts between an employer and an employee that outline the terms and conditions of the employee’s departure from the company. Termination agreements must comply with
the requirements/formalities of a contract under law. These include the following. • Form – The agreement must be in writing, signed by the parties and witnessed. • Mutual consent – The agreement must be made mutually by both parties, free from fraud, duress, undue influence, or other vitiating factors that could invalidate the contract. • Consideration – There must be a form of consid - eration provided, such as terminal benefits. These benefits should be clearly negotiated and included in the termination agreement. Limitations on Termination Agreement Terms Non-disparagement clauses Such clauses must not infringe on the employee’s freedom of speech to an unreasonable extent. Confidentiality agreements Any confidentiality clauses should be specific and not overly broad to avoid being considered unenforce - able. Restrictive covenants Restrictive covenants such as non-compete or non- solicitation clauses must be reasonable in terms of duration, geographical scope and scope of activities restricted. Waivers of future claims The agreement cannot lawfully waive the employee’s right to bring future claims relating to issues that may arise after the agreement is signed. Lay-offs and redundancies In cases of mass lay-offs or redundancies, employers may need to comply with additional regulatory require - ments, such as notifying the relevant labour authori - ties before concluding such termination agreements. 7.5 Protected Categories of Employee By virtue of Section 54 (4) of the Labour Act, employ - ers are prohibited from terminating the contract of any female worker who is absent due to maternity leave, or who remains absent from her work for a longer period as a result of illness that arose out of her preg - nancy or confinement and renders her unfit for work.
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