To ensure businesses operate efficiently across all sectors, including tech, banking and finance, the employer-employee relationship must be meticulously managed. In Nigeria, this relationship is primarily governed by contractual agreements, supplemented by various laws and regulations, such as the Labour Act. Although the Labour Act mainly applies to lower cadre employees and unskilled workers, it also provides guidance on the minimum expectations for employers in Nigeria.
A recent development in the regulation of employee-employer relationships in Nigeria is the proposed wage review bill, which aims to increase the minimum wage by 50% to N70,000 ($44). This proposal requires approval from the National Assembly before it can be implemented. The wage review is the result of ongoing discussions between the President and the Nigeria Labour Congress (NLC) to enhance employee welfare.
Given the importance of managing employer-employee relationships effectively, we present key measures to adopt for better management of employees in Nigeria:
Employment Contracts
Detailed employment contracts is crucial. These should clearly outline the responsibilities of both the employee and employer, details of compensation, probationary periods, termination notices, intellectual property rights, and confidentiality obligations. The contract should also specify the conditions under which either party may terminate the agreement, including the notice period or compensation for lack of notice. Furthermore, the contract should state that employees are bound by the Employee Handbook and company policies to ensure compliance.
Share Options
Offering share options can foster an ownership mind-set among employees and enhance their compensation. If share options are to be granted, this should be explicitly stated in the contract, along with the milestones required for vesting. The terms of the share options should be included in a separate agreement, executed by the employee.
Employee Handbook and Policies
A comprehensive employee handbook should complement the employment contract. This handbook should detail company policies and outline acceptable and unacceptable conduct. It should cover the leave policy, IP policy, definitions of misconduct, disciplinary procedures, constitution of the disciplinary team, whistleblowing policy, and more. The handbook is a vital part of the employment contract and must be implemented rigorously.
Employment Pre-conditions
If employment is contingent on security or other checks, this must be clearly stated in the contract. All required checks should be completed before a firm offer is made to avoid complications in withdrawing offers or terminating employment agreements early.
Documentation of Disciplinary Procedures
Employers must maintain transparency and consistency in disciplinary actions. Documenting the disciplinary procedure and keeping detailed records of actions ensures fairness and provides evidence in the event of unfair dismissal claims.
Probationary Period
Employees should be evaluated before the end of their probationary period. If performance is satisfactory, employment should be confirmed in writing. If an extension is necessary due to unmet expectations, it should be clearly communicated in writing. If termination is required, it must adhere to the contract terms and be handled fairly.
Appraisals
Employees should be informed of key performance indicators and undergo regular appraisals to understand employer expectations and identify areas for improvement. Appraisals can also help employers identify skill gaps and provide training opportunities.
Companies should continuously review workplace practices to ensure compliance with relevant laws, regulations, judicial decisions, and international best practices. Building a healthy workplace culture and proactively addressing potential issues can significantly enhance employer-employee relations.
By implementing these measures, businesses can better manage their workforce, ensuring a more harmonious and productive work environment.
This article provides a general overview of the subject.Please contact us directly for any specific legal assistance.