An employment relationship, often characterized by the interaction between an employer and an employee, forms the basis for any termination scenario. A contract of employment, whether expressed in written or oral form, sets the framework for this relationship, with one party agreeing to employ the other and the other agreeing to serve as a worker.

While it is a fundamental principle of law that employers have the right to hire and fire, the courts have consistently emphasized the necessity of providing notice before terminating employment, ensuring that such termination aligns with the terms of the employment contract.

Termination of employment marks the conclusion of an employee's tenure with a company and can be initiated voluntarily or as a result of an employer's decision. Reasons for termination can range from downsizing and poor job performance to redundancy and more.

It is important to distinguish between termination and dismissal, as they carry distinct characteristics:

  1. Termination is a right held by both the employer and employee, whereas dismissal is solely at the discretion of the employer.
  • Termination adheres to a specific timeline, as outlined in the employment contract, whereas dismissal is executed immediately.
  • Following termination, an employee may still be eligible for certain benefits, whereas this is not the case in a dismissal scenario.

Nigeria's employment landscape is guided by the Nigeria Labour Act Cap 1LFN 2004, along with several other related laws:

  • Industrial Training Act, 2011
  • The Pension Reform Act, 2014
  • Personal Income Tax Act.
  • National Health Insurance Scheme Act.
  • Employee Compensation Act.
  • The Nigerian Factories Act, 2004

This article aims to provide a practical guide for dealing with wrongful termination claims, offering perspectives from both employers and employees.


For Employees:

  1. Understanding Nigerian Labor Laws: Start by acquainting yourself with the relevant labor laws in Nigeria. Key legislations include the Labor Act, Trade Disputes Act, and Employee Compensation Act, which provide essential guidance on termination procedures, employee rights, and dispute resolution.
  • Reviewing Your Employment Contract: Scrutinize your employment contract to grasp the terms and conditions of your employment. Pay particular attention to clauses related to termination, notice periods, and disciplinary procedures specified in the contract.
  • Identifying Grounds for Wrongful Termination: Recognize the grounds on which you can claim wrongful termination. Common reasons include termination without notice, termination in violation of the employment contract, or termination on discriminatory grounds.
  • Document Everything: Maintain detailed records of your employment, including performance reviews, emails, and any communication pertaining to your termination. This documentation serves as valuable evidence in potential disputes.
  • Consulting the HR Department: If applicable, engage in a dialogue with the Human Resources (HR) department. They may offer insights into the reasons behind your termination and potential resolutions.
  • Mediation and Conciliation: In Nigeria, the Ministry of Labour and Employment provides mediation and conciliation services. Consider filing a complaint with the Ministry to explore the possibility of resolving the issue before resorting to legal action.
  • Seeking Legal Advice: Consult with an employment lawyer well-versed in Nigerian labor laws. They can assess the specifics of your case, offer guidance on the best course of action, and help you understand your legal rights.
  • Submitting a Complaint to the Industrial Arbitration Panel (IAP): In cases where mediation falls short, you have the option to file a complaint with the Industrial Arbitration Panel, a body responsible for settling industrial disputes in Nigeria.
  • Legal Action: If all else fails, be prepared to take legal action through the National Industrial Court. Ensure you have appropriate legal representation and adhere to the court's procedures.
  1. Damages and Compensation: In the event of a successful claim, you may be entitled to damages or compensation, which can include reinstatement, back pay, or compensation for any harm suffered due to wrongful termination.
  1. Time Limitations: Be aware of the time limitations for filing a complaint. In Nigeria, there are specific time limits within which you must submit a complaint following a wrongful termination.

For Employers:

  1. Understanding Nigerian Employment Laws: Begin by familiarizing yourself with the relevant employment laws in Nigeria. The primary legislation governing employment relationships is the Labor Act. Additionally, there may be industry-specific regulations.
  • Documenting Employment Relationships: Ensure that all aspects of the employment relationship are well-documented. This includes maintaining the employment contract, job descriptions, performance evaluations, disciplinary actions, and any communication related to termination.
  • Grounds for Termination: Grasp the legal grounds for termination. Nigerian employment law generally recognizes termination for justifiable causes, such as misconduct, poor performance, redundancy, or a breach of employment terms.
  • Follow Due Process: If there are valid grounds for termination, adhere to the due process outlined in the employment contract and relevant laws. This process may involve issuing written warnings, conducting investigations, and allowing the employee to present their side of the story.
  • Notice or Severance Pay: If termination becomes inevitable, ensure compliance with notice periods or payment in lieu of notice as stipulated in the employment contract or the Labor Act. Certain situations may also require severance pay.
  • Consulting with Legal Professionals: Seek legal advice before terminating an employee to ensure compliance with all relevant laws and regulations. Legal professionals can guide you on the best approach to handle the termination, minimizing legal risks.
  • Maintain Records: Keep meticulous records of the reasons for termination, communication leading up to it, and any evidence supporting your decision. This documentation is crucial if legal action ensues.
  • Engaging in Mediation: Mediation can be a cost-effective and less adversarial means of resolving disputes. Consider mediation before resorting to formal legal proceedings.
  • Responding to Legal Notices Promptly: If the terminated employee engages legal representation and serves you with legal notices, respond promptly and professionally. Ignoring legal notices can have adverse consequences.
  1. Be Prepared for Legal Proceedings: In the event of a wrongful termination claim, be ready to defend your decision in court. Present evidence of justifiable termination and demonstrate that due process was followed.
  1. Employee Assistance Program: Consider implementing an employee assistance program that supports employees facing termination, helping them transition to new employment smoothly.
  1. Continuous Review and Compliance: Regularly review your employment practices and policies to ensure ongoing compliance with Nigerian labor laws. Stay informed about any changes in legislation that may impact employment relationships.


It is crucial to engage with a qualified employment lawyer in Nigeria to ensure you are following the most current and relevant legal advice tailored to your specific situation. Seek professional legal counsel to understand the intricacies of your case and determine the most appropriate course of action. Laws and procedures can vary, and a qualified lawyer can help you effectively navigate the legal system.

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.