Last updated on: April 27th, 2022
The Labour Law in Nigeria is regulated mainly by the Labour Act (Laws of the Federation of Nigeria 2004). The Labour Act governs the terms and conditions of employment such as working hours, holidays and rest periods, wages, overtime, employment relationships. The other act that governs employment relationships is the Public Holidays Act, 1979.
Hours & Pay Regulations
An employee shall after 12 months of continuous service, be entitled to leave with full pay of-
- At least 6 working days; or
- In the case of a person under the age of 16 years (including an apprentice) at least 12 working days.
The holiday may be postponed by agreement between the employer and the employee, however, that the holiday-earning period shall not extend beyond 24 months’ continuous service and the employee must take the annual leave within the 24 months period time frame.
Calculation of Pay
For the purpose of calculation of annual leave pay, the employee shall be paid the wages which they receive in money (excluding any overtime premium and other allowance) which shall be considered as annual leave pay.
Vacation Pay upon Termination
An employee whose employment terminates after completing –
- Less than 12 but not less than 6 months in the continuous employment of an employer; or
- No less than 6 months in the continuous employment of an employer since the employee last qualified for a holiday.
shall be paid a pro-rata amount for accrued annual leave. Labour Act, § 18 – 19.
Effective November 1, 2020, the minimum wage in Nigeria is 30000 NGN/Month.
An employee shall be entitled to be paid leave for up to 12 working days in any 1 calendar year due to temporary illness certified by a registered medical practitioner.
Calculation of leave pay and sickness benefits
For the purpose of calculation of sick leave pay, the employee shall be paid the wages which they receive in money (excluding any overtime premium and other allowance) which shall be considered as sick leave pay. Labour Act (Laws of the Federation of Nigeria), 2004, § 16 and 19.
A pregnant employee is entitled to 12 weeks of paid leave. Out of this 12-week period, 6-week leave is taken after delivery. The leave may begin 6 weeks before delivery after providing a medical certificate from a registered practitioner confirming that the delivery may take place within 6 weeks.
Pay – Employees who have at least 6 months of continuous service with the employer are entitled to not less than 50 percent of the wages that the employee would have earned if not been absent.
A female employee is entitled to 2 paid half an hour breaks during working hours for nursing her child. Labour Act (Laws of the Federation of Nigeria), 2004, § 54.