Investor Presentaiton
The Country and its
institutions
Business Organisation Labour and Social
and Regulation
Security Regulations
The Nigerian Financial
Services Industry
Tax System
Foreign Exchange
Transactions
Investment in Nigeria
Accounting and
Auditing Requirements
Importation of Goods Exportation of Goods
COVID-19 Economic
and Fiscal Measures
3.5
3.6
Termination of Employment/ Suspension of Employees
An employment may be terminated if the parties to the contract jointly agree to do
so. Generally, however, for an employment to be unilaterally terminated, a notice
of termination (the period of which would depend on the terms of the contract of
employment and/or the circumstances surrounding the employment) must be given
or payment of salary must be made in lieu of such notice.
An employer may dismiss an employee when he has committed an act of
misconduct e.g., fraud, insubordination or any other wrongdoing.
In justifiable circumstances, e.g., pending investigation of a crime, an employer
may place an employee on suspension. However, unless it is clearly stipulated that
suspension shall be without pay, an employee on suspension is entitled to be paid
his salaries and emoluments during the period of suspension.
Nonetheless, the law implies a right to suspend an employee without pay in favour
of an employer, during the period of such employee's trial for an offence that leads
to his conviction and subsequent dismissal.
Minimum Wage
The National Minimum Wage (Repeal and Re-enactment) Act, 2019 ("the Act")
places a statutory obligation on every employer (except as provided for under
the Act) to pay a wage not less than the National Minimum Wage of #30,000 per
month to every worker in his employment. The stipulated amount is clear of all
deductions, except deductions required by law or in respect of contributions to
provident or pension funds or schemes agreed to by the workers and approved by
the Minister of Labour and Employment (the Minister).
The minimum wage provisions do not apply to the following:
.
an establishment in which less than twenty-five (25) workers are employed;
•
an establishment in which workers are employed on part-time basis (i.e. less
than forty hours per week);
an establishment in which workers are paid on commission or piece-rate basis;
.
workers in seasonal employment, such as agriculture;
3.7
An employer is mandated to keep proper records of the wages and conditions
of employment of its employees and to retain such records for a period of three
(3) years. Failure to do this is an offence under the Act and attracts a fine not
exceeding #75,000.00 and a penalty not exceeding #10,000.00 for each day in
which the offence continues.
Civil service officers, so authorised by the Minister, are empowered to enter an
employer's premises for the purpose of examining such records. The authorised
officers may order an employer found contravening the provisions of the Act to
remedy the situation within a specified time. Criminal proceedings may also be
instituted against such an employer.
Any agreement for payment of wages less than the prescribed national minimum
wage is void. Contravention of the minimum wage provision of the Act by an
employer is an offence that attracts, on conviction, a fine not exceeding 5% of
the offender's monthly wage, and a penalty of not less than the CBN lending
rate on the wages owed, for each month during which the offence continues.
Contravention of other provisions of the Act, through falsification of records, refusal
to provide information requested by an authorised officer, etc., also qualifies as
an offence under the Act. The offence, on conviction, attracts a fine not exceeding
#250,000 or imprisonment for a term not exceeding six months, or to both such
fine and imprisonment.
Industrial Training Fund (ITF)
The ITF Act, Cap 19 LFN, 2004 [as amended by the ITF (Amendment) Act, 2011]
established the Industrial Training Fund (ITF) to:
promote and encourage the acquisition of skills in industry or commerce with a
view to generating a pool of indigenous trained manpower sufficient to meet the
needs of the economy;
provide training for skills in management for entrepreneurial development of the
economy;
• set training standards in all sectors of the economy; and evaluate and certify
vocational skills acquired by apprentices, craftsmen and technicians in
collaboration with relevant organisations.
The ITF Governing Council is charged with the responsibility of administering the
Fund in accordance with the provisions of the Act.
•
any person employed in a vessel or aircraft to which the laws regulating
merchant shipping or civil aviation apply; and
other exemptions granted by the Minister in the interest of national economy,
after taking into consideration reports from National Salaries Income and Wages
Commission or such other body as might make representation for exemption.
33
Investment in Nigeria Guide - 8th Edition
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