Each case of employment Dispute is unique, and the appropriate legal action depends on the facts of each case. Acting on instinct rather than legal advice can lead to a loss of rights by the employee or expose the employer to liability. Based on our experience in employment litigation, we recognize basic legal principles to help Nigerian employees and businesses effectively manage these situations.

 

1. Promotions and Demotions: Burden of Proof Issues

• The employees are rarely provided a right to promotion by law unless they can prove discrimination or victimization, which requires solid evidence.
• The burden of proof in the case of promotions is on the employee, whereas in the case of demotions, the employer must justify the action if the employee can prove that they were doing well.

 

2. Salary, Bonuses, and Unpaid Wages: Know Your Rights

• Employers cannot unilaterally reduce or withhold salary unless the employment contract provides for this. Even after resignation from employment with a company, employees have a right by law to unpaid salary.
• Bonuses are not a given unless contractualized in an employment contract. Employees will have to provide evidence of profits or sales targets met if their bonus is performance-based.
• Where bonuses are discretionary, it is difficult to dispute their refusal unless there is obvious evidence of discrimination or unfairness.

 

3. Job Description Changes and Transfers: Limits to Employer Discretion

• Employers normally possess the right to transfer workers or change their job descriptions for business purposes. Nevertheless, an employee can appeal against these actions if the latter are arranged in a manner to make them fail because of insufficient support from the employer.
• If discharge accompanies a transfer or job change on unfair grounds, the worker has a potential claim for unfair labour practices.

 

4. Suspension, Termination, and Dismissal: Adhering to Due Process

• Indefinite suspensions are unlawful. Suspension without pay must have been included in the employment contract.
• Termination and dismissal must adhere to contractual stipulations. Employers are now required to provide and justify reasons for termination.
• Payment in lieu of notice must be provided at the same time as the termination letter; late payment is unlawful.
• If an employee accepts terminal benefits without protest, they may lose the right to challenge an unfair termination.

 

5. Fair Dismissal Procedures: Ensuring Due Process

• Dismissals for misconduct must follow fair hearing procedures, including:
• Issuing a query
• Allowing the employee to respond
• Holding a disciplinary hearing (if necessary)
• Providing a report detailing the findings
• The dismissal report must be given to the employee either before or alongside the dismissal letter.
• An employer who delays in taking disciplinary action may be considered to have condoned the misconduct and cannot use it as grounds for dismissal afterward.

 

6. Leave Rights and Retirement: Legal and Contractual Protections

• Denial of statutory leave or retirement benefits may constitute unfair labour practices.
• Courts recognize that termination of an employee solely for taking medical or maternity leave is unlawful.
• Compulsory retirement may be challenged if the employer cannot justify it.

 

7. Gratuity and Pension: Understanding the Law

• Unlike pension, which is mandatory under the Pension Reform Act (PRA), gratuity is not a statutory right in Nigeria.
• Employees are only entitled to gratuity where the contract of employment provides for it. Where an employer has paid gratuity to other employees in the same circumstances, an aggrieved employee can use that as evidence of unfair treatment.

 

8. Severance Agreements: Avoiding Costly Mistakes

• Employees must obtain legal advice prior to entering into severance agreements since acceptance of a settlement might preclude them from pursuing further claims in the future.
• Discussions must also cover post-employment references, since a false or vindictive reference from a former employer may give rise to a claim in damages for unlawful interference with prospective employment.

 

9. Compensation and Damages: What Employees Can Recover

• Courts award compensation based on proof of specific losses, such as unpaid wages, bonuses, pensions, and terminal benefits.
• Employees have a duty to mitigate losses by taking up new jobs wherever possible. But indefinitely suspended employees are not expected to take up another job. In wrongful suspension cases, courts can award accrued wages up to the date of judgment.

 

10. Jurisdiction Over Employment Disputes: Where to Litigate

• The National Industrial Court of Nigeria (NICN) has exclusive jurisdiction in labour disputes.
• Labour disputes may be referred to arbitration, but the NICN has jurisdiction and may enforce arbitral awards.
• Actions for defamation or bank loan cases concerning employees are handled by the High Court, not the NICN.
• Workers should get copies of important employment documents—like contracts, promotion letters, payslips, and company policies—before leaving employment because access to company records is typically lost after disengagement.

 

Both employers and workers can avoid unnecessary legal disputes by being aware of their rights and obligations. Seeking legal advice, rather than acting on assumptions, is the way to protect interests and ensure fair treatment in the workplace.