NIGERIA Trends and Developments Contributed by: Adedapo Tunde-Olowu, Ugonna Ogbuagu, Adejumoke Ademola and Miebi Abere, ǼLEX
Treat leave as a legal duty, not as a discretionary benefit Nigerian law places the onus on employers to ensure that staff take their statutory leave, regardless of whether an employee requests it. This means actively tracking leave balances, scheduling rest periods and enforcing compliance. Relying on a “use it or lose it” approach common in other jurisdictions may breach Nigerian law. Align HR beneficiary records with succession law Naming someone as “next-of-kin” in company records is not the same as legally designating them as a beneficiary. In Nigeria, death benefits and pension payouts must follow statutory succession rules, typi - cally requiring probate or letters of administration. HR teams should ensure that benefit designation forms are harmonised with legal succession processes to prevent disputes and payment delays. Keep meticulous records – everything matters in disputes Contemporaneous documentation often determines the outcome of litigation or arbitration. Maintain clear records of employee consent, notice issuance, pay - ment receipts, leave schedules and policy implemen - tation. In disputes before the NICN, a lack of proper documentation can be fatal to a defence, regardless of the substantive merits. Extend safety compliance to all categories of workers Occupational health and safety obligations apply broadly in Nigeria, including in multi-tier labour arrangements where contractors, subcontractors or agency workers are involved. Employers must ensure that safety policies, training programmes and pro - tective equipment are implemented and monitored across all tiers of labour supply, as duty of care is shared between principal employers and intermedi - aries.
means), the employer may end the contract without stating a reason, and this will not amount to unfair labour practice. This creates a narrow but important carve-out from the “no-reason-no-termination” trend. Shared duty, shared liability The NICN treats workplace safety as a non-delegable duty, meaning that principal employers and contrac - tors alike can be held jointly liable where both exer - cise control over work conditions. Subcontracting or outsourcing does not insulate from liability; all statu - tory safety, equipment and injury-reporting obligations apply across the employment chain. For employers with multi-tier labour structures, compliance must cascade through all operational layers. Practical Takeaways for Multinational Employers and Counsel in Nigeria Draft with precision and prepare for stress scenarios Contracts and HR policies should be watertight and tailored to Nigerian legal realities. Where salaries are denominated in foreign currency, include clear for - eign exchange (FX) contingency clauses that specify conversion rates, fallback payment mechanisms, or indexed values in the event of currency shortages. For termination provisions, set out notice periods in unambiguous terms and link them to practical pay - ment timelines. For leave entitlements, expressly state the employer’s obligation to schedule and enforce leave – this is not just an administrative task, it is a legal duty. Review “conversion” exercises and fixed-term contracts carefully Any change from permanent to contract status must be supported by genuine and uncoerced consent. Economic pressure or implied threats can render employee “agreement” invalid. Similarly, for fixed-term contracts, ensure that expiry and renewal processes align with notice requirements and that contractual language leaves no ambiguity on renewal rights or termination triggers.
414 CHAMBERS.COM
Powered by FlippingBook