Hire compliantly inNigeria Talk to an Expert

Written Agreements

Employers must give employees a written statement in the form of a contract no later than three months after beginning employment. The statement must specify employer and employee particulars, the nature of employment, leave, sick pay, holidays, notice period, and wage rate. If an employee is given written employment contract, written statement is not required.

Oral Agreements

While the Nigerian Labour Code defines recognizes the use of oral contracts of employment, it mandates that employees have a written agreement with their employer within three months of the employee's start date.

Implied Agreements

In Nigeria, although the Labour Act recognizes implied contracts, there are no provisions or guidance on implied employment agreements. The law requires employers to provide a written statement stating the terms of employment within three months of the employment start date.

Under the new National Minimum Wage Act 0f 2019, general full-time working hours are fixed by agreement or collective bargaining within the enterprise or industry. When there is no arrangement for collective bargaining, an Industrial Wages Board may set the general working hours. The Labour Act does not indicate a standard number of weekly working hours.

New Year’s Day - January 1; Good Friday - date subject to change every year; Easter Monday - date subject to change every year; Workers Day - May 1; Democracy Day - June 12 (declared as the official day of celebration for Democracy Day and changed from May 29); Independence Day - October 1; Eid ul Fitr - date subject to change every year; Id el Kabir - date subject to change every year; Id el Maulud - date subject to change every year; Christmas Day - December 25.

There are no provisions or guidance on probationary periods, but the standard best practice is for the probationary period not to exceed 90 days.

Notice Period

The notice period is calculated based on the length of employment:

• 1 day, where the employment has lasted 3 months or less
• 1 week, where the employment has lasted for more than 3 months but less than 2 years
• 2 weeks, where the employment has lasted between 2 years and less than 5 years
• 1 month, where the employment has lasted for 5 years or more

Any notice period of more than 1 week has to be in writing. The notice period requirement can be waived by paying the employee's basic wages (excluding overtime and other allowances) in lieu of notice. Contracts can be terminated without notice in case of gross misconduct by either party.

Severance Benefits

Severance payments are not mandatory under the law but may be specified in employment contracts or collective bargaining agreements. In addition, the Labour Act gives the Minister of Labour the authority to enact regulations on severance pay for employees made redundant.

Minimum Wage

In Nigeria, the National Minimum Wage Act mandates that all employees' minimum wage be NGN 70,000 (Nigerian nairas) per month, effective July 2024. The minimum wage is set to be reviewed every 3 years.

The following establishments are exempt from the obligation to pay the national minimum wage:

• An establishment with fewer than 25 employees
• An establishment which employs employees on a part-time basis (under 40 hours per week)
• An establishment at which wages are paid through commissions or on a piece-rate basis
• Employees in seasonal employment (for example, agriculture) and seamen or crew members of an aircraft

Employees are paid according to the periodicity determined in their employment contracts. No contract shall provide for the payment of wages at intervals exceeding 1 month unless the written consent of the State Authority has been previously obtained.

Overtime, Holiday & Vacation Pay

All employees are to be paid overtime for hours worked in excess of those agreed upon in the employment contract. The employment agreement also determines overtime rates. For work completed during weekly rest periods and public holidays, employees are entitled to a day off within 14 days in lieu of work done or monetary compensation according to overtime rates.

Employees have a right to at least 6 days of annual leave paid at their basic wage, excluding all allowances and overtime pay.

Visas

There are 75 visa classes, broadly categorized into 3 groups as follows:

• Short Visit Visas (24 classes) – Allows people visit for no more than 3 months on tourism, transiting, business travel, seminars, etc.
• Temporary Residence Visas (36 classes) – Allows individuals to reside in Nigeria for a period not exceeding 2 years on employment, also for students, interns, etc.
• Permanent Residence Visas (15 classes) – Caters to long-term stay by retirees, investors, highly skilled immigrants and their spouses.

Visa on Arrival is available for short visits to passport holders of African Union member states.

Work Permits

Foreign nationals who come to Nigeria for employment need to apply for a Temporary Residence Visa. R2A - Employment Visa (Expatriate) is a type of visa issued to persons who wish to take up employment in Nigeria, based on expatriate quota. The following documents must be submitted:

• Passport valid for at least least 6 months with at least 2 blank visa pages for endorsement
• Formal application for R2A Visa from the Employer/Institution accepting Immigration Responsibility
• Expatriate quota approval
• Letters of offer of appointment and acceptance of offer
• Educational qualifications and Curriculum Vitae

After entering Nigeria, employees can apply for Regularization of Stay (Residence Permits). Residence permits are made for 2 years, and are renewable.