Area: Labour & Employment Law
Termination of employment is a sensitive issue in Nigeria. Whether you're an employer or employee, understanding the legal landscape surrounding this situation is crucial.
Legal Frameworks
Employment and terminations of same are governed by various laws in Nigeria. Some of these laws include:
- 1999 Constitution: The 1999 Constitution (as amended) established and designated the jurisdiction of the National Industrial Court of Nigeria (NICN). By virtue of the Constitution, all matters related to employment matters can only be litigated at the National Industrial Court.
- Labour Act: The Labour Act is the principal law governing labour and employment in Nigeria. The Act stipulates the conditions for employment and termination in Nigeria.
- National Industrial Court Act: The National Industrial Court Act also complements the constitutional provisions pertaining to the establishment and jurisdiction of the National Industrial Court. It also dealt with the administration of the NICN.
- National Industrial Court of Nigeria Rules: The National Industrial Court of Nigeria Civil Procedure Rules 2017 is the rule of court that governs the National Industrial Court practice procedures. It stipulates the procedure for filing & responding to a lawsuit and the entire court procedure at the NICN.
- Judicial Decisions: The employment matters are also governed by various judicial decisions of the NICN and appellate courts.
Understanding Wrongful Termination
First, let's establish what constitutes wrongful termination. In Nigeria, termination is considered wrongful if it doesn't follow the procedures outlined in the employee's contract or relevant labor laws, such as the Nigerian Labor Act. Here are some common reasons for wrongful termination:
- No notice or insufficient notice period: The employer must provide written notice of termination, with the duration depending on factors like the employee's length of service and contract terms.
- Discrimination: Termination based on factors like race, religion, gender, or age is illegal.
- Termination on a faulty allegation against the employees: The employers are forbidden from terminating the employees based on false allegations. Most lawsuits on the wrongful termination of employment are predicated on this reason.
Remedies for Wrongful Termination of Employment
First, the court empowered to hear cases pertaining to termination of employment and employment-related matters is the National Industrial Court of Nigeria, as mentioned above. The court is established under the Section 254A of the 1999 Constitution (as amended).
Employees who believe they have been wrongfully terminated can potentially seek any of the following remedies:
- Reinstatement: In ideal circumstances, the court might order the employer to reinstate the employee to their previous position. This type of remedy is only applicable in employment with statutory favours, meaning government-related employment.
- Damages: This is the most common remedy. The court can award the employee financial compensation for lost wages, benefits, and other losses suffered due to the wrongful termination. The amount is determined by factors like the employee's salary, remaining contract period, and emotional distress.
- Severance Pay: Even in cases of lawful termination, the employer will be obligated to pay severance pay, depending on the contract or industry regulations. This is a lump sum payment to compensate the employee for the loss of their job. A severance pay may not be awarded by the court unless it is contained in the contract of employment.
- Unpaid Entitlements: If the employee has outstanding wages, accrued vacation time, or other benefits, the court can order the employer to pay them.
Factors Affecting Remedies
The specific remedy awarded depends on several factors:
- Employment Contract: The terms of the contract might dictate specific procedures for termination and potential remedies for breach.
- Nature of Termination: Was it with or without notice? Was there just cause? The details surrounding the termination significantly impact the case.
- Evidence: The employee must provide evidence to support their claim of wrongful termination. This could include copies of the employment contract, emails, witness testimonies, or performance evaluations.
Steps to Seek Remedies for Wrongful Termination
If you believe you've been wrongfully terminated, here are some steps you can take:
- Consult an Employment Lawyer: A lawyer specializing in labour law can advise you on your legal options and guide you through the process.
- Gather Evidence: Collect any documents or information that supports your case. An employment case is decided based on the preponderance of evidence or balance of probabilities. It would be wrong to approach a court without having sufficient evidence to prove your case.
- Negotiate with Employer: Sometimes, an amicable resolution can be reached through negotiation with the employer. The Federal Ministry of Labours also offers free mediation between sacked employees and employers to resolve issues related to work entitlements and compensations.
- File a Complaint: If negotiation or mediation fails, you can file a complaint with the National Industrial Court of Nigeria (NICN) through a legal practitioner, allowing the court to decide on the issue. Either the employer or employee is entitled to appeal the judgement of the lower court, NICN, to the Court of Appeal within the jurisdiction. The Court of Appeal is the final court in an employment-related matter, not the Supreme Court of Nigeria.
Conclusion
Wrongful dismissal can be a stressful experience for employees. Understanding your rights and the potential remedies available can help you navigate this situation effectively. While reinstatement is an option, financial compensation through damages is the more common remedy in Nigeria. Consulting with an employment lawyer is crucial to determining the best course of action for your specific case.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.