Employer’s checklist: a compliant employment contract
The terms every Nigerian employment contract should cover — and the statutory points employers often miss.
A clear contract prevents most employment disputes. For workers covered by the Labour Act, the employer must provide a written statement of key terms within three months of the start of employment (section 7).
Core terms
- Names of employer and employee, job title and start date.
- Pay, allowances, payment dates and deductions.
- Working hours and place of work.
- Leave, holidays and sick leave.
- Notice periods (not less than the Labour Act minimum).
- Probation terms.
Protective clauses
- Confidentiality and data protection (Nigeria Data Protection Act 2023).
- Intellectual property created at work.
- Reasonable restrictive covenants.
- Disciplinary and grievance procedure (or reference to the handbook).
Statutory obligations to reflect
- Pension contributions under the Pension Reform Act 2014.
- Employee compensation contributions (Employee’s Compensation Act 2010).
- PAYE tax deductions.
Checklist
- ☐ Written terms issued within three months
- ☐ Notice periods compliant
- ☐ Handbook referenced
- ☐ Statutory contributions set up
Every situation is different — for advice on yours, speak with our team in confidence.