APPRAISAL OF NIGERIAN

LABOUR LAWS:
IMPLICATIONS FOR
INDUSTRIAL RELATIONS

T. A. Abiodun

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 Objective
• At the end of the presentation, participants will:
o Understand basic legal principles

o Have a better insight into Nigerian Labour laws

o Bench mark Nigerian Labour Laws against

international Best Practice

o Appreciate the relationship between labour law

and industrial relations

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 DISCUSSION OUTLINE
• Setting the stage
o What is law
o Classification of law

• Overview of Nigeria Labour Laws

o Components of Nigeria Labour Laws

• Relationship Between Law & Practice

• Conclusion

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 Setting the Stage

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 Definition
• There is no generally acceptable definition of
Law
o John Austin considers it to be the rule laid
down for the guidance of an intelligent being
by an intelligent being having power over him

o Justice Homes says that the prophecies of

what the courts will do and nothing more
constitutes the law

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 Definition
• Consider This:
o The aggregate of the rules of behavior which
are either directly laid down by the State in
the form of laws or sanctioned by it in one
form or the other, such as custom

o These rules are mandatory in that failure to

observe them will attract sanctions

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 Classification
• Bye laws: Laws made by a LG
• Laws: Laws made by a State Government in a
Civilian era
• Edicts: Laws made by a state Government in a
Military era
• Acts Laws made by Federal Government in a
Civilian era
• Decrees Laws made Federal Government in a
Military era

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 Framework

Labour
Laws

International
English Laws Local Laws
Laws

Common Law Statute of General

Conventions Recommendations
And Equity Application

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 Purpose

• The major purpose of the law is to influence human

behavior
o Law as it is not as it ought to be
• Labour laws influence workplace relations through
laws that regulate:
o Collective bargaining and determinations of terms
and conditions
o Settlement of labour disputes
o Supervision of labour safety
o Security of workers in old age, sickness, etc

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Laws affecting industrial relations
(Intention and Basic Provisions of the Law)

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 Laws Relating to Terms and
Conditions of Employment
• Contract of Employment
o This law is derived from English laws. It lays the
foundation for employment relations.

o It is a contract whereby a person offers another and

that person agrees to work for another on agreed
terms and conditions

o The law defines the rights and duties of both parties

under common law, although they may be altered by
legislations or written agreements
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 Laws Relating to Terms and
Conditions of Employment
• Labour Act
o The law was enacted in 1974 to protect wages,
regulate contracts of employment and terms and
conditions of employment

o The law is applicable only to workers (junior staff)

o Some provisions are:

 Wages shall be paid in legal tender as and when
due but not later than last day

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 Laws Relating to Terms and
Conditions of Employment
• Deductions from wages are prohibited except
authorized by law/labour office

• Automatic recognition and deduction of dues to union

except the worker contracts out

• A worker shall be entitled to particulars of employment

after 3 months service

• Paid Holidays after 12 months continuous work

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 Laws Relating to Terms and
Conditions of Employment
• Any change in a workers terms of employment shall
be communicated to him

• Normal hours shall be determined by CB but any

hour above 8hrs shall be overtime

• A woman shall be entitled to paid maternity leave

although the employer is not obliged to pay medical
expenses

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 Laws Relating to Terms and
Conditions of Employment
• National Minimum Wage Act
o The law which was first enacted in 1981 sought to
prescribe a minimum wage below which no employer
should pay.

o The law is only applicable to establishments with 50

workers

o Some of its provisions are:

 Establishment of 4,500 Naira minimum wage
 Wages means total emolument

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 Laws relating to Employee’s
Welfare
• Factories Act
• The Act which was enacted in 1958 and amended in
1987 makes provision for the safety of workers. It
created minimum safety standards that employers
must adhered to

• Some of the provisions are :

o Factories shall be kept in hygienic state
o It should not be over crowded
o It should be well ventilated and lighted

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 Laws relating to Employee’s
Welfare
• Sufficient and suitable sanitary conveniences shall
be provided
• Every machine that could injure a worker should be
well fenced
• No untrained worker should work on any machine
capable of causing injury unless he has been
trained
• Precautions shall be taken in case of explosives
and gases.

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 Laws relating to Employee’s
Welfare
• Workmen Compensation Act
• The aim of the Act which was enacted in 1958
and amended in 1987 is to provide for payment
of compensation to workers for injuries
sustained in the course of employment

• The 1987 Act extended the coverage of the law

to all workers as well as removed difficulties
and delays in previous Act

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 Laws relating to Employee’s
Welfare
• Some of its provisions are:
o Employers are liable to compensate employees
for injuries sustained provided the injury has
incapacitated the worker for at least 3 days and is
not as a result of workers serious and willful
misconduct

o The amount of compensation are stated in the

schedule and it depends on gravity of injury

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 Laws relating to Employee’s
Welfare
Pensions Reforms Act, 2004
• The PRA, 2004 was enacted with the following objectives:
o Safe-guard Pension contributions so that every worker receives his
retirement benefits as and when due
o Assist workers to save in order to carter for their livelihood during old
age
o Ensure transparency & efficiency management of pension funds

• The scheme is compulsory for Public Sector and for all

employers with at least five employees in the private
sector:
o Employees with less than 3 years to their retirement and those
covered by Section 291 of the Nigerian Constitution are exempted

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 Laws relating to Employee’s
Welfare
• Some of its provisions include:
o Employees are to open a Retirement Savings Account
(RSA) with a Pensions Fund Administrator (PFA) of their
choice
o Employer and employee to jointly contribute minimum of
15% employee’s basic salary, housing & transport
allowances to RSA
 7.5% by employer and 7.5% by employee in govt. ministries and
agencies
 12.5% by employer and 2.5% by employee in Military
 In other cases, minimum of 7.5% each by the employer & employee
o Employer may bear the full burden, i.e. not less than 15%.
Contributions can only be reviewed upwards

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 Laws relating to Employee’s
Welfare
• Employer to deduct and remit to Pension Assets
Custodian (PAC) within 7 days of pay day
• PAC to notify, within 24 hours, the PFA who would credits
the employee’s RSA
• Contributions and retirement benefits are tax-exempt
• Employer shall maintain life insurance (3 times total
emolument) in favour of each employee
o Upon death & disability, the benefits under life insurance will be paid to
the RSA
o Provisions for withdrawal from RSA shall apply and benefits be paid to
designated beneficiary

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 Laws relating to Employee’s
Welfare
• Account holders must be 50 years or upon retirement
• Mode of withdrawal
o Programmed monthly or quarterly withdrawals or
o Annuity for life purchased from Life Insurance
Company with monthly or quarterly payments
o Lump sum also possible where:
 the amount left after the withdrawal shall be
sufficient to procure an annuity or an amount not
less than 50% of his annual remuneration as at the
date of retirement

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 Laws relating to Trade Union and
Dispute Settlement
• Trade Unions Acts
• The 1973 Act and the subsequent
amendments provide for the creation,
registration and management of Trade Union.

• Trade Union means any combination of

workers or employers, whether temporary or
permanent, whose purpose is to regulate
employment terms

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 Laws relating to Trade Union and
Dispute Settlement
• Other provisions include:
o No staff recognize as management projection
shall belong to the Union if it will lead to a conflict
of interest

o Automatic recognition to the appropriate union

o It is lawful for the union or any of its members to

engage in peaceful picketing in contemplation of a
trade disputes

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 Laws relating to Trade Union and
Dispute Settlement
• Trade Unions (Amendment) Acts (Decree No 4, 1996)
o The objective of the amendment is amongst other things to remove
all anomalies in the present structure of trade unions caused by
duplication and overlapping jurisdiction
o Employers shall make deduction from the wages of a worker and
remit same directly to the Union after deducting what is due to the
CLO
o Every trade union shall pay 10% of total collected check off dues to
the CLO
o No person shall be eligible to contest for any post in the CLO or
trade union unless he is a member of the Union – a member of the
union is a card carrying member

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 Laws relating to Trade Union and
Dispute Settlement
• Trade Unions (Amendment) Acts (Decree No 26 of 1996
o The deductions and remittance of check off shall be subject
to a no strike clause in the collective agreement
o The check off system will cease where:
 Union has been dissolved by members
 Its certificate has been revoked
 Union embarked on a strike in breach of no strike clause
o It shall be unlawful for anyone not being a card carrying
member of any union to participate and assume a functional
role in any policy or decision making organ of the union
except the function is strictly limited to administrative duties
alone

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 Laws relating to Trade Union and
Dispute Settlement
Trade Unions Amendment Act, 2005
• The Act which was enacted in March, 05 provided for the
democratization of labour movement as well as granting
freedom to employees to decide which unions they wish to
belong.
• Some of its provisions are:
o Membership of a trade union shall be voluntary and no employee
shall be forced to join any trade union or be victimized for refusing
to join or remain a member
o The employer shall make deductions from the wages of every
worker who is a member of any of the trade unions recognized in
third schedule and remit such deductions to the registered office of
the trade union

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 Laws relating to Trade Union and
Dispute Settlement
• For the purpose of CB, all registered unions in the employment
of an employer shall constitute an electoral college to elect
members who will represent them in negotiations with the
employer

• No person shall subject any other person to any kind of

constraint or restriction of his personal freedom in the course of
persuasion

• No person or trade union shall in the course of any strike

action compel any person who is not a member of its union to
join any strike
o Shall also not prevent aircraft from flying or obstruct public highway,
institutions or premises
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 Laws relating to Trade Union and
Dispute Settlement
• No person, trade union or employer shall engage in a
strike or lockout unless:
o It is not engaged in provision of essential services
 The arbitration provisions of the TDA shall apply in disputes affecting
provision of essential services
o Strike/lockout concerns a dispute of rights
 Dispute of right means a labour dispute arising from negotiation,
application, interpretation or implementation of a CA
o Strike/lockout concerns a dispute arising from collective and
fundamental breach of contract of employment or CA
o A ballot has been casted and majority of members have
agreed to go on strike/lockout

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 Laws relating to Trade Union and
Dispute Settlement
• Trade Disputes Act
• The Act was enacted in 1976. It has the objective of
expeditiously settling trade Disputes.

• A trade disputes is any dispute between employers

and workers or between workers and workers relating
to the employment or otherwise or terms of/ conditions
of employment of any person

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 Laws relating to Trade Union and
Dispute Settlement
• Some other provisions include:
o Parties must first settle differences by internal means
before resorting to external means

o The external means commences with declaration of

trade disputes after which the following machinery is set
in motion:
 Mediation
 Arbitration
 Adjudication

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 Laws relating to Trade Union and
Dispute Settlement
• There shall be no strike or lockout except the process
in the Act has been followed

• Where a worker takes part in a strike he shall not be

entitled to wages for the period. If the employer locks
out, he shall pay the worker for the period

• The National Industrial Court has exclusive jurisdiction

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Correlation between Labour
laws and Labour Practices

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 Correlation between law and
practice
Practice

Justified by law?

Yes No

Justified Vary practice Amend law

Justified Justified

Yes/No Yes/No

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 Finally…..
• Remember:
o Law is about conditioning behavior. It is a means to
a social end and every part of it must constantly be
examined and judged in the light of its purpose and
effect.

o The workplace will experience industrial peace and

harmony when all parties obey the laws and play the
game according to the rules.

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 Thank you for your attention

Questions! Comments!

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