The House of Representatives in Nigeria is making a bold move to tackle the issue of unpaid salaries. A bill is being proposed to criminalize the non-payment or failure to pay salaries by employers of labor and corporate bodies across the country.
The sponsor of the bill, Wale Hammed, a member representing the Agege Federal Constituency, Lagos State, has titled it “The Employees Remuneration Protection Bill, 2023.” The bill has passed its first reading and is set to make significant changes in the labor landscape if enacted into law.
One of the key provisions of the bill is that it will become unlawful for any employer to refuse or neglect to pay the remuneration of their employees, as provided under this Act. Furthermore, if an employee’s compensation remains unpaid beyond the specified period permitted by this legislation, they will have the right to submit a written demand to their employer for the payment of their entitlement.
If an employer fails to remit payment within five business days following the service of a demand, the employee may petition the court for redress. Employers found guilty of failing to pay the salaries of their workers risk a three to six-month imprisonment, without the possibility of a fine, according to the bill.
Under the proposed legislation, corporate entities that fail to adhere to a court order regarding the remuneration of their employees risk a daily fine or face being sealed off for a period not exceeding three months. Moreover, officers or agents of organizations, government parastatals, agencies, bodies, or institutions who deliberately or knowingly authorize or permit the default or noncompliance with the directive may face a penalty.
In addition, the bill places a legal obligation on employers to provide written terms of employment to resuming employees within a specified timeframe. It also outlines the need for a comprehensive employment contract that covers terms and conditions, remuneration, and methods of payment, in addition to the character of the employment and the procedure for termination by either party.
Crucially, the bill also safeguards employees by stating that their petition to the court for payment of remuneration shall not serve as grounds for disciplinary action, inquiry, suspension, or termination by the employer. Furthermore, in the event of an employer’s bankruptcy, the bill prioritizes the payment of all outstanding remuneration to employees.
This proposed bill has the potential to bring about substantial changes in the labor sector in Nigeria and ensure that the rights of employees are protected. It signifies a crucial step towards holding employers accountable for the remuneration of their workers and could have far-reaching implications for labor rights in the country.
