Nigeria's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:
Employment Types:
Permanent: Ongoing employment with full statutory benefits.
Fixed-Term: Hired for a specific project or defined duration.
Temporary: Short-term assignments; entitled to statutory benefits like minimum wage and compensation coverage.
Probation Periods: There is no explicit legal requirement, but probation periods typically ranges between 3 to 6 months, and must be outlined in the employment contract. These periods allow employers to assess employee suitability before offering permanent employment. Notice periods during probation are typically minimal, and the EOR ensures that all terms are compliant with the Labour Act.
Working Hours & Overtime: In Nigeria, working hours are determined by employment contracts or collective bargaining agreements, with no statutory standard weekly hours. However, depending on the type of work, employers typically structure working hours around an 8-hour workday. Employees must receive overtime pay for hours worked beyond those agreed in their contract. For eligible employees, overtime rates are determined by employment agreements, and the EOR ensures that all overtime is calculated correctly and that employee work hours comply with local regulations.
Leave Entitlements
Leave Type | Eligibility / Duration | Payment / Notes |
|---|
Annual Leave | 6 working days after 12 months continuous service (12 days for under 16) | Paid at basic wage; must be taken within 24 months |
Maternity Leave | 12 weeks total (6 weeks before and 6 weeks after childbirth) | 50% of wages if employed for 6+ months |
Paternity Leave | Not provided in private sector (2 weeks for public servants) | Unpaid in private sector |
Sick Leave | 12 days per year with medical certification | Paid at basic wage; certified by registered medical practitioner |
Public Holidays | All statutory holidays | Paid; handled by Atlas HXM |
Vacation Leave | As per company policy / statutory minimum | Paid; unused leave typically paid out upon termination |
Payroll & Benefits: Wages must meet the minimum wage of NGN 70,000 per month (effective July 2024) for establishments with 25+ employees. Atlas HXM manages payroll in NGN, pension contributions (employer and employee), statutory benefits, bonuses, and life insurance. Supplemental benefits can include health insurance, transportation allowances, housing allowances, and professional development options.
Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Nigeria's labor laws while businesses can focus on operations without administrative burdens.
