The sources of employment law in Nigeria are:

  • the Constitution of the Federal Republic of Nigeria 1999 (as amended) (the "Constitution")

  • the Labour Act, Laws of the Federation of Nigeria 2004 ("Labour Act")

  • Guidelines for the Release of Staff in the Nigerian Oil and Gas Industry, 2019

  • Employees' Compensation Act 2010

  • Factories Act, Chapter F1, LFN 2004

  • Finance Act 2020

  • National Housing Fund Act, Chapter N45, LFN 2004

  • Nigerian Oil and Gas Industry Content Development Act 2010

  • Trade Disputes Act, Chapter T8, LFN 2004

  • Nigeria Data Protection Regulation 2019 issued by the National Information Technology Development Agency

  • international conventions, treaties and protocols relating to labour, employment, workplace, industrial relations or matters connected therewith that have been ratified by Nigeria.

The Labour Act is the principal legislation governing employment relations in Nigeria. Its application is limited to employees engaged under a contract of manual labour or clerical work in private and public sectors.

Employees exercising administrative, executive, technical or professional functions are governed by their respective contracts of employment. It is pertinent to note that reliance is sometimes placed on judicial authorities to promote some labour and employment law principles.

In addition, the following also apply; the:

  • Pension Reform Act 2014, which regulates the contributory pension scheme

  • Personal Income Tax Act which regulates the taxation of employees' remuneration

  • Employees' Compensation Act 2010, which regulates the payment of compensation to employees who suffer occupational diseases or sustain injuries arising from accidents in the workplace or during employment

  • Industrial Training Fund Act which requires employers to contribute 1% of their annual payroll to the Industrial Training Fund created by the act

  • Immigration Act 2015, which regulates the employment of foreign nationals

  • National Health Insurance Scheme Act which established the national health insurance scheme

  • Trade Unions Act which regulates the organisation of trade unions and their activities.

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