Employment 2025

NIGERIA Trends and Developments Contributed by: Adedapo Tunde-Olowu, Ugonna Ogbuagu, Adejumoke Ademola and Miebi Abere, ǼLEX

Why this matters This aligns with global “substance + process” termi - nation standards. Multinationals implementing redun - dancies in Nigeria must ensure both justification and strict adherence to notice/payment requirements. Fixed-term contracts: no reason required for non- renewal Mr Constantine Alimonos v Honeywell Flour Mills Plc (NICN/LA/161/2023, 28 July 2025) The NICN confirmed that, in the absence of a renew - al agreement, a fixed-term contract can end without stating a reason. However, failing to give the required notice may still constitute wrongful termination. Why this matters This reflects a stricter contractualist approach than in some jurisdictions where non-renewal can be scru - tinised for fairness. Employers should ensure clear drafting of duration, renewal and notice provisions. Jurisdiction over domestic work SJ Abed General Enterprises Ltd v Mrs Patience Friday Emmanson (NICN/PHC/22/2019, 11 February 2025) The court reaffirmed its jurisdiction over all workers, including domestic staff, but found no company liabil - ity where the engagement was purely personal to a director. Why this matters This reinforces that the NICN’s reach covers uncon - ventional or informal work arrangements. Employers and individuals alike must be mindful that “private” engagements can still fall under Nigerian labour juris - diction. Workplace safety and co-employment liability Bayem P Mirabel v Top Steel Nigeria Limited and Others (NICN/LA/570/2017, 24 July 2025) The court held that both a principal employer and its contractor could be jointly liable for workplace injuries under a triangular employment relationship, where control and supervision were shared. The judg - ment also faulted the defendants for not complying with mandatory injury-reporting obligations under the Employees’ Compensation Act and the Factories Act.

Why this matters Outsourcing does not dilute safety responsibilities. Employers in Nigeria, whether direct or indirect, must ensure protective equipment, safe working conditions, and compliance with statutory reporting. Neglecting these obligations can result in joint liability and dam - ages, even where injuries are temporary. Key themes Several cross-cutting themes emerge from these deci - sions. “Substance + process” (always both) The NICN will accept legitimate business reasons – redundancy, restructuring, fixed-term expiries – but will still penalise procedural missteps (such as notice pay) and consent defects (such as coerced status conversions). Employers should not assume that commercial justifications alone will carry the day; execution must be immaculate. Contract is king and courts will enforce it From currency-of-pay clauses to accrued leave and gratuity, the NICN takes a strict contractualist approach: agreed terms are enforceable, and unilat - eral deviations (including FX-driven changes) attract liability. This resonates with common-law predict - ability while cautioning that operational convenience (or macroeconomic pressure) will not override clear drafting. Rights with real teeth The NICN treats certain protections (annual leave, fair treatment in restructurings, proper succession of ben - efits) as substantive rights, not mere HR policy. The court’s insistence that employers proactively ensure leave is taken, and that “next-of-kin” does not trump legal heirs, are examples of rights being operation - alised in ways that directly affect payroll, policy, and benefits administration. The fixed-term contract exception While the NICN has consistently required employers to justify terminations, especially in permanent employ - ment and in line with international labour standards, it appears that this principle may not apply strictly to fixed-term contracts. In such cases, if the agreement permits termination on notice (or by other stipulated

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