An employee has been dismissed and says the procedure was not followed. A business is growing and still has no written contracts or handbook. Salaries are in arrears and a staff member is threatening to go to court. Employment disputes are personal as well as legal, and the documents written at the start of the relationship usually decide how it ends.
The law
What the law provides
The Labour Act sets minimum terms for workers within its scope — written particulars of employment, wages, hours and notice. Beyond it, the rights of the parties are found mainly in the contract of employment, the employer's handbook or conditions of service, and, for public servants, the applicable public service rules.
The National Industrial Court has exclusive jurisdiction over labour and employment matters under section 254C of the Constitution, as amended. It may apply international best practice in labour and has, in recent years, required that termination of employment be for a valid reason.
Other statutes bear on the relationship, including the Pension Reform Act 2014, the Employee's Compensation Act 2010 and the Nigeria Data Protection Act 2023 in respect of employee records.
The process
What happens in practice
Most matters start with advice — on a proposed termination, on drafting contracts and policies, or on responding to a grievance. A properly documented process is the best protection for both sides.
Where a claim is brought, it is commenced in the National Industrial Court, which sits in divisions across the country. The court's procedure is set by its own rules and places weight on the contract documents, the correspondence and the procedure actually followed. Appeals lie to the Court of Appeal.
Our role
How the firm acts
For employers, we draft and review contracts of employment, handbooks and disciplinary procedures, and advise on discipline, redundancy and termination before steps are taken. For employees, we review the terms of engagement and the circumstances of a dismissal and advise on what can be claimed.
We conduct proceedings in the National Industrial Court and pursue negotiated exits and settlement agreements where they are in the client's interest.
Questions
Questions clients commonly ask
Can my employer dismiss me without giving a reason?
The position has moved. The National Industrial Court has held that termination should be for a valid reason connected with conduct, capacity or operational requirements, in line with international labour standards. The contract and the facts still matter a great deal.
Which court hears employment disputes?
The National Industrial Court has exclusive jurisdiction over most labour and employment matters, including those arising from the terms of employment.
Does a small business need written employment contracts?
Yes. The Labour Act requires written particulars for workers within its scope, and clear contracts and policies reduce the risk of disputes for every business.
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