Losing a job can be difficult, but the situation becomes more serious where an employer terminates an employee’s employment in breach of the terms of the employment contract or applicable law. Wrongful termination in Nigeria is primarily a contractual issue in ordinary employment relationships. The rights of an employee depend on the terms of the employment contract, applicable legislation and the circumstances surrounding the termination. An employee who believes that their employment was wrongfully terminated should understand the applicable rules before deciding what legal action to take. What Is Wrongful Termination? Wrongful termination occurs where an employer brings an employment relationship to an end in breach of the terms governing the employment. For example, where an employment contract requires one month’s notice or payment of salary in lieu of notice and the employer terminates the employment immediately without complying with either requirement, the termination is wrongful. The National Industrial Court has repeatedly recognised the contractual nature of ordinary master-and-servant employment. Where the contract prescribes a procedure for termination, the employer must comply with that procedure. Is Wrongful Termination the Same as Unlawful Dismissal? The terms should not be used interchangeably. In ordinary contractual employment, wrongful termination generally refers to termination in breach of the employment contract. Unlawful dismissal can arise where the termination violates a statutory provision or affects an employment relationship governed by specific statutory protections. The distinction is important because the applicable remedies depend on the nature of the employment relationship. What Makes a Termination Wrongful? A termination can be wrongful where the employer fails to comply with a contractual or legally required condition for bringing the employment to an end. Common examples include: Failure to give the required notice. Failure to pay salary in lieu of notice where applicable. Failure to comply with a contractual termination procedure. Termination contrary to an applicable statutory requirement. Failure to comply with an agreed disciplinary procedure where the contract makes that procedure a condition of termination. The employment contract should therefore be examined before determining whether a termination was wrongful. Does an Employer Need a Reason to Terminate Employment? An employer is not bound to give reasons for termination but once he gives a reason for termination of employment he bears the burden to justify it. In ordinary master-and-servant employment, an employer generally has the contractual right to terminate the relationship in accordance with the applicable terms. The employer’s reason for termination does not necessarily determine whether the termination is wrongful. The critical question is often whether the employer complied with the contract and applicable law. However, this principle does not permit an employer to terminate employment for a reason prohibited by law or to disregard statutory protections applicable to the particular employment relationship. What If the Employer Terminates Employment Without Notice? Where the employment contract requires notice, the employer must give the prescribed notice or make the appropriate payment in lieu of notice. Section 11 of the Labour Act also provides statutory notice periods in circumstances covered by the Act. The prescribed period depends on the duration and nature of the employment. Accordingly, an employer who terminates an employment relationship without the required notice or payment in lieu of notice acts in breach of the applicable terms. What Is Payment in Lieu of Notice? Payment in lieu of notice is payment of the remuneration that would have been earned during the applicable notice period where employment is terminated immediately. For example, if an employee’s contract requires one month’s notice and the employer wants the employee to leave immediately, the employer must comply with the contractual provision concerning payment in lieu of notice. The precise entitlement depends on the employment contract and applicable law. Can an Employer Dismiss an Employee Without Notice for Misconduct? Yes. Dismissal for serious misconduct is distinct from ordinary termination by notice. Where an employee commits conduct that legally and contractually justifies summary dismissal, the employer can terminate the employment without the ordinary notice period. However, the employer must still comply with any applicable contractual, statutory and procedural requirements. Where disciplinary procedure is required by the contract or applicable law, the employer must follow it. What If the Employee Was Not Given a Fair Hearing? The consequences depend on the nature of the employment relationship and the applicable rules. In ordinary contractual employment, the right to fair hearing does not automatically convert every termination into an unlawful termination merely because the employee was not given an opportunity to defend allegations. However, where the contract, staff handbook, applicable statute or the nature of the employment requires a disciplinary procedure, failure to comply with that procedure can expose the employer to liability. The National Industrial Court has demonstrated that failure to comply with contractual and company procedures can have significant consequences in wrongful-termination claims. What Can an Employee Claim After Wrongful Termination? The remedy depends on the circumstances of the employment and the nature of the breach. In ordinary contractual employment, an employee can claim the financial loss resulting from the employer’s breach, including the applicable notice entitlement. Other accrued contractual entitlements can also be claimed where they remain unpaid. Recent Nigerian employment jurisprudence has also shown developments concerning damages for wrongful termination, making it important to assess the current authorities applicable to the particular claim rather than relying solely on older statements of the law. Can an Employee Get Reinstatement? Reinstatement is not ordinarily the remedy for wrongful termination in a purely contractual master-and-servant relationship. Where an ordinary employment contract has been wrongfully terminated, the usual remedy is monetary compensation for the breach rather than an order compelling the employer to continue the employment relationship. Different considerations apply to employment governed by statute or involving statutory flavour. The nature of the employment relationship must therefore be established before advising on the remedy. What Is Employment With Statutory Flavour? Employment with statutory flavour is employment governed by statutory provisions that prescribe the terms and conditions of the relationship. It is different from ordinary master-and-servant employment. Where an employee’s
Can an Employer Sack You Without Notice in Nigeria?
Losing a job can be financially and professionally disruptive, particularly where an employee is dismissed without warning or without being given an opportunity to prepare for the termination. This often raises an important question: Can an employer sack you without notice in Nigeria? The answer depends on the nature of the employment relationship, the terms of the employment contract, the reason for the termination and the applicable law. An employer’s right to terminate an employment relationship is not necessarily unlimited, and an employee’s rights may depend significantly on the terms and laws governing the employment. What Does Notice of Termination Mean? Notice of termination is the period an employer or employee is required to give before bringing an employment relationship to an end. The applicable notice period may be provided by: The employment contract. A collective agreement, where applicable. Applicable legislation. The terms governing the particular employment relationship. Where an employee’s contract specifies a particular notice period, the parties generally need to consider that contractual provision when determining how the employment may be terminated. Can an Employer Terminate Employment Without Notice? In some circumstances, yes. An employer may be entitled to terminate employment without giving the ordinary period of notice where the law or the applicable employment contract permits immediate termination. One common example is termination for serious misconduct where the circumstances justify dismissal without notice. However, whether an employer was entitled to terminate without notice depends on the particular facts and the terms governing the employment. An employer should therefore not assume that every dismissal can lawfully be made without notice. What Is the Difference Between Termination and Dismissal? The terms are sometimes used interchangeably, but they can have different legal implications. Termination generally refers to bringing the employment relationship to an end in accordance with the applicable terms. Dismissal may refer to termination by the employer, particularly in circumstances involving misconduct or disciplinary issues. The legal consequences may depend on the nature of the employment and the applicable contractual and legal framework. Can an Employee Be Dismissed for Misconduct Without Notice? Potentially, yes. Where an employee commits serious misconduct, an employer may have grounds to dismiss the employee without the ordinary notice or payment in lieu of notice, subject to the applicable law, contract and disciplinary procedure. Examples of conduct that may potentially amount to serious misconduct depend on the employment relationship and applicable rules. The employer should nevertheless ensure that the procedure adopted is consistent with the employee’s contractual and legal rights. Does an Employer Have to Give a Reason for Termination? Generally an employer is not bound to give any reason for terminating an employment. However, once he decides to give a reason, the burden lies on him to justify it. In many ordinary contractual employment relationships, the employer’s ability to terminate is primarily governed by the contract and applicable law. What If the Employer Says “You Are Fired” Immediately? An employer’s verbal statement may not necessarily resolve all the legal questions surrounding the termination. The employee should obtain and preserve relevant documents, including: Employment contract. Offer letter. Staff handbook. Termination or dismissal letter. Disciplinary correspondence. Emails and messages relating to the termination. Payslips and other relevant employment records. These documents may be important when determining whether the termination complied with the applicable contractual and legal requirements. What Is Payment in Lieu of Notice? Where the applicable terms permit termination by notice or payment in lieu, the employer may terminate the employment immediately by making the appropriate payment instead of requiring the employee to work through the notice period. The exact entitlement depends on the employment contract and applicable law. Payment in lieu of notice should therefore not be confused with a dismissal for misconduct. Can an Employer Terminate Employment Because He No Longer Wants the Employee? In ordinary contractual employment, an employer has a contractual right to terminate the relationship, subject to the applicable terms and law. However, that does not mean an employer can terminate employment for every conceivable reason or disregard contractual and statutory protections. The circumstances surrounding the termination remain important. What If the Termination Is Because of Discrimination? A termination may raise serious legal issues where it is based on a prohibited or unlawful reason. An employee who believes that their employment was terminated because of an unlawful discriminatory or otherwise prohibited reason should obtain legal advice promptly. The available remedies will depend on the nature of the employment and the circumstances of the case. What If the Employer Does Not Pay Salary or Other Entitlements? Termination of employment does not necessarily extinguish amounts that were already lawfully due to the employee. Depending on the circumstances, an employee may have claims relating to: Unpaid salary. Payment in lieu of notice. Accrued contractual benefits. Other sums due under the employment relationship. The employee should obtain advice on the particular terms of the employment contract and applicable law. What Should You Do If You Are Sacked Without Notice? If your employment has been terminated without notice, avoid making assumptions about your legal position. Instead: Obtain your employment contract and relevant employment documents. Request or retain the termination or dismissal letter. Determine the reason given for the termination. Check the applicable notice provisions. Determine whether payment in lieu of notice is applicable. Preserve relevant communications and evidence. Seek legal advice before signing any settlement or waiver. Acting promptly can help preserve important evidence and legal options. Can an Employee Sue an Employer for Wrongful Termination? Potentially, yes. Where an employer terminates employment in breach of the applicable contract or law, an employee may have a claim for wrongful termination or another appropriate remedy, depending on the circumstances. However, the mere fact that an employee considers a termination unfair does not automatically mean that a successful legal claim exists. The employee’s contract, the circumstances of the termination and the applicable legal framework must be examined. What Remedies May Be Available? The remedy available to an employee depends on the nature of the employment and