Wrongful Termination in Nigeria: What Employees Can Claim

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 appointment has statutory flavour, termination must comply with the applicable statute or regulations.

The remedies available for an unlawful termination can also differ significantly from those available in ordinary contractual employment.

How Long Do You Have to Bring a Claim?

The applicable limitation period depends on the nature of the claim, the parties involved and the applicable legislation, usually for a public sector job 3 months and 5 to 6 years for a private sector jobs.

Employment claims can also be subject to procedural requirements that should be considered before commencing proceedings.

An employee should therefore not delay after termination while assuming that there will always be unlimited time to bring a claim.

Prompt legal advice allows the applicable limitation and procedural requirements to be identified.

What Evidence Does an Employee Need?

An employee bringing a wrongful-termination claim should preserve all relevant documents.

Important evidence can include:

• Employment contract.
• Offer or appointment letter.
• Staff handbook.
• Termination or dismissal letter.
• Disciplinary correspondence.
• Emails and text messages.
• Payslips.
• Evidence of unpaid salary or benefits.
• Performance reviews.
• Relevant workplace policies.
• Correspondence with the employer concerning the termination.

The documents help establish the terms of employment and the circumstances in which the employment was terminated.

Can an Employee Sue an Employer for Wrongful Termination?

Yes.

Where an employer breaches the terms governing the employment, the affected employee can commence an appropriate claim before the court with jurisdiction over the dispute.

Employment disputes within the jurisdiction of the National Industrial Court of Nigeria are generally brought before that court.

Before commencing proceedings, the employee should establish the precise terms of the employment, identify the breach and determine the appropriate remedy.

What Should You Do After Being Wrongfully Terminated?

If you believe your employment was wrongfully terminated:

1. Obtain your employment contract.
2. Obtain the termination or dismissal letter.
3. Review the notice provisions.
4. Check the staff handbook and applicable workplace policies.
5. Preserve all relevant communications.
6. Calculate unpaid salary and other contractual entitlements.
7. Obtain legal advice on the circumstances of the termination.
8. Consider sending an appropriate demand or pre-action notice where required.
9. Commence proceedings where litigation becomes necessary.

Do not sign a settlement, waiver or full-and-final discharge without understanding its legal effect.

Common Mistakes Employees Make

Employees who have lost their jobs sometimes make mistakes that weaken their claims.

These include:

• Failing to preserve the employment contract.
• Deleting relevant emails or messages.
• Signing a settlement without legal advice.
• Assuming that every unfair termination is automatically wrongful termination.
• Failing to calculate contractual entitlements.
• Waiting too long before obtaining legal advice.
• Commencing proceedings without identifying the proper cause of action.
• Assuming that reinstatement is available in every employment dispute.

A proper legal assessment should come before litigation.

How Lexforte Attorneys Can Help

Lexforte Attorneys advises and represents employees and employers in employment and labour disputes.

Our services include:

• Employment contract review.
• Wrongful termination claims.
• Unlawful dismissal claims.
• Recovery of unpaid employment entitlements.
• Employment negotiations.
• Disciplinary and workplace disputes.
• Employment litigation.
• Representation before the National Industrial Court.

We assess the employment relationship, identify the applicable legal framework and advise clients on the appropriate remedy.

Conclusion

Wrongful termination in Nigeria occurs where an employer terminates an employment relationship in breach of the terms governing that employment.

The rights and remedies of an affected employee depend on the employment contract, applicable legislation and the nature of the employment relationship.

In ordinary contractual employment, the primary issue is usually whether the employer complied with the contractual terms governing termination and the employee’s resulting financial entitlement. Where statutory protections apply, the legal position and available remedies can be different.

If your employment has been terminated and you believe the employer breached your contract or applicable law, obtain legal advice promptly and preserve all documents relating to your employment and termination.