Contracts and Dismissals
Written Employment Particulars
Contract of employment is any agreement, whether oral or written, express or implied, whereby one person agrees to employ another as a worker and that other person agrees to serve the employer as a worker. Employment contracts are governed under the Labour Act however the Labour Act is not applicable to persons exercising administrative, executive, technical or professional functions as public servants, or to any person employed on a vessel or on an aircraft to which the laws regulating merchant shipping or civil aviation already apply, among other classes of persons.
An employment contract must be concluded in written form and must be given to the worker within three months of commencement of employment. A contract of employment must state the following information: the name of the employer or group of employers, and where appropriate, of the undertaking by which the worker is employed; the name and address of the worker and the place and date of his engagement; the nature of employment; expiry date in case of fixed term contract; notice period given before termination of the contract; remuneration, method of its calculation and manner and frequency of payment; any terms and conditions related to working hours, or holidays and holiday pay, or incapacity for work due to sickness or injury, including any provisions for sick pay; and any special conditions of the contract.
The written statement referring to the above mentioned terms may not confine only to the contract but extends to other documents like employer’s handbook or collective agreement, that are in the worker's access.
The employer must notify the workers within a month regarding any subsequent changes in the terms mentioned above, in a form of written statement or if the employer does not provide a written statement, the employer must ensure the worker's access to the amended statement by other means.
If a worker restarts employment with the same employer after the termination of employment contract and the gap is less than six months, there is no need to issue a new written contract. Employer must inform the worker about the amendments regarding the terms in written statement. The obligation to provide a written statement does not apply if a worker has a written contract of employment which covers all the terms, and a worker has a copy of that written contract.
Any amendments in the employment contract require mutual agreement of the employer and the worker.
Source: §7 & 91 of the Labour Act (Cap L1 LFN 2004)
Fixed Term Contracts
Employment contracts can be fixed-term or indefinite. There are no special laws regarding fixed-term contracts. Labour law has not defined any statutory limit on the maximum length of fixed-term contracts, the number of renewals allowed, or the maximum length of fixed-term contracts including renewals, and it seemingly does not prohibit fixed-term contracts for tasks of a permanent nature. Labour Act does not explicitly regulate fixed-term contracts.
Source: §7(1) of the Labour Act (Cap L1 LFN 2004)
Probation Period
No provision could be located in law regarding maximum length of probation period. Law neither allows nor prohibits the employer to employ a worker on probation. However, the employer may in the contract of employment provide for a probation period, which if accepted by the employee becomes binding on the parties.
The Labour Act recognizes any special conditions of contract if agreed by the parties to be included in a contract of employment. As stated in section 7 of the Labour Act, the employer has to provide a written statement of particulars to the worker within three months of starting an employment, which can be considered similar to a probation period.
Depending on the level of staff, the probationary period may vary between three (3) to six (6) months. While this three-month period is not explicitly labelled as a probationary period, it is often interpreted as an implied probationary phase in practice, during which the employer assesses the employee’s suitability for the role.
Source: §7 of the Labour Act (Cap L1 LFN 2004)
Termination of Employment
A contract ends when its agreed period is over, if the worker passes away before the contract ends, or if either the employer or the worker gives proper notice as required by law.
Either party has the right to terminate an employment contract by providing notice. However, in serious cases where one party’s behaviour is unacceptable, the contract can be ended immediately without notice. The law does not explicitly define what qualifies as misconduct.
The Labour Act does not list specific reasons for dismissal but prohibits termination based on: • Trade union membership or participation in trade union activities • Pregnancy, maternity leave, or medical leave due to pregnancy-related conditions. • If an employer has to reduce the number of workers due to business needs, they must: • Inform the trade union or worker representatives about the reasons and how it will be done. • Follow the "last in, first out" rule, meaning that the most recently hired workers should be let go first, while also considering their skills, ability, and reliability.
Source: §9, 11, 20 & 54(4) of the Labour Act (Cap L1 LFN 2004)
Regulations on Employment Security
- Labour Act (Cap L1 LFN 2004)
- Public Holiday Act, 1979
