The House of Representatives is considering a bill that aims to criminalize the non-payment or failure to pay salaries by employers and corporate bodies in Nigeria. The bill, titled “The Employees Remuneration Protection Bill, 2023,” has passed its first reading and is sponsored by Wale Hammed, a member representing the Agege Federal Constituency, Lagos State.
According to the proposed legislation, it would be unlawful for any employer to refuse or neglect to pay the remuneration of their employees as provided under the Act. If an employee’s compensation remains unpaid beyond the specified period allowed by the legislation, the employee can submit a written demand to their employer for the payment of their entitlement.
If the employer fails to remit payment within five business days following the service of a demand, the employee may petition the court for redress by filing a motion on notice.
Employers found guilty of failing to pay the salaries of their workers could face three to six months of imprisonment without the possibility of a fine. Corporate entities that fail to adhere to a court order regarding employee remuneration risk a daily fine of N10,000 or being sealed off for a period not exceeding three months, provided that the default extends beyond two months.
The bill also imposes a N10,000 penalty on any officer or agent of an organization, government parastatal, agency, body, or institution who deliberately or knowingly authorizes or permits the default or noncompliance with the directive until it is complied with.
Under the proposed legislation, employers are obligated to provide written terms of employment to resuming employees within 14 working days of the employee’s return to work for terms of employment exceeding one month. The employment contract must comprehensively outline the terms and conditions, remuneration, methods of payment, character of the employment, and the procedure for terminating it by either party.
The bill further specifies that an employee’s petition to the court for payment of remuneration shall not serve as grounds for disciplinary action, inquiry, suspension, or termination by the employer. In the event of an employer’s bankruptcy, the bill prioritizes the payment of all outstanding remuneration to employees.
