EMPLOYMENT RELATIONSHIP AND TERMINATION IN NIGERIA: COMPLETE GUIDE TO LABOUR LAWS AND EMPLOYMENT RIGHTS

a parking lot full of cars and trucksThe employment relationship, by definition, determined through the interaction between employer and employee, provides a basis for situations of all terminations. This relationship in itself is birthed through a contract of employment-either in writing or oral-whereto one party agrees to employ the other, the latter agreeing to his provision as an employee.
While the employer has the right to hire and fire, the legal concepts underscore the employer’s duty to observe whatever is stipulated in the contract of employment, including notices of dismissal. The courts in Nigeria have reaffirmed this concept to ensure justice in cases of termination.
Understanding Termination and Dismissal
Termination of employment means the end of a person’s tenure with an organization, which may be initiated voluntarily or at the discretion of the employer due to redundancy, poor performance, or downsizing. However, there are huge differences between termination and dismissal since:
• Termination is one of the mutual rights of both the employer and employee and it usually follows a process outlined in the employment contract.
• Dismissal is an employer-initiated action, often immediate, usually for misconduct or a breach of contract.
•Following termination, Employees may be entitled to benefits upon termination but not upon dismissal.
Legal FrameWork of Employment in Nigeria
The Labour Act Cap 1 LFN 2004, the main legislation governing the employment relationship in Nigeria, is supported by several other statutes, including:
• The Pension Reform Act, 2014
• The Industrial Training Act, 2011
• The Employee Compensation Act
• The National Health Insurance Scheme Act
• The Factories Act, 2004
These laws offer a guide on employment practices, conditions of termination, employees’ rights, and resolution machinery.
How to Deal with Wrongful Termination: A Guide for Employees and Employers
For Employees
1. Understand Nigerian Labour Laws: Get familiar with the Labour Act, Trade Disputes Act, and Employee Compensation Act that state your rights and the due process for termination.
2. Review Your Employment Contract: Go through the termination, notice period, and disciplinary action clauses to see if the employer has followed the agreed terms.
3. Determine the Reasons for Wrongful Termination: It may be due to termination without notice, breach of contract conditions, or discrimination practices.
4. Marshal Evidence: Gather performance reviews, emails, letters of termination, and any communication associated with your situation for proof.
5. Involve the HR Department: In some cases, speak with HR about your termination for possible explanations or remedies.
6.     Seek Mediation or Conciliation: A complaint can also be filed with the Ministry of Labour and Employment, where mediation and conciliation facilities are provided.
7.     Consult an Employment Lawyer: An employment lawyer will help you assess your complaint and advise you on your legal options.
8.     Industrial Arbitration Panel: In case of a breakdown in mediation, a complaint can be filed before the IAP for dispute resolution.
9. Legal Action: Go to the National Industrial Court when all avenues are exhausted, always maintaining procedural compliance.
10. Seek Damages: Depending on the outcome of a successful claim, it may entail damages in lieu of reinstatement with or without back pay, or other awards.
11. Time Limits: Be conversant with the statute of limitation periods applicable to filing wrongful termination claims.
For Employers
1. Know Your Employment Law: Understand the Labour Act and other important laws that affect your employees.
2. Documentation of Employment Relationships: Keep detailed records regarding employment contracts, performance evaluation reports, disciplinary measures, and correspondence.
3. Grounds for Termination: Termination should be grounded on valid causes like redundancy, misconduct, or poor performance.
4. Due Process: Avail written warnings, conduct an investigation, and let the employee answer to the charge before making a decision.
5. Notice Requirements: Provide the required notice or payment in lieu of notice according to the contract of employment or law.
6. Seek Legal Counsel: Take advice from legal experts to reduce risks and address all legal compliances.
7. Mediation: Consider other dispute resolution methods before heading to court.
8. Reply to Legal Notices: Immediately and efficiently respond to legal complaints or notices to prevent escalation.
9. Be Prepared for Litigation: Be prepared to defend your decision in court with documentation and evidence.
10. Employ the Employee Assistance Programs: Allow the opportunities that can be provided to assist the employee who has been terminated in their transition.
11. Maintain Compliance Ongoing: Periodically examine policies and practices within employment to meet present laws and regulations.
Navigating termination, especially wrongful termination claims, requires a thorough understanding of Nigerian labour laws and employment practices. Both employees and employers must exercise due diligence to protect their rights and interests.