Employer’s Liability: Examination of Employer-Employee Relationships  under Nigerian Contract Law

By Deborah Aduma

Introduction

The relationship between an employer and an employee in Nigeria is primarily contractual.  This contractual bond is foundational to modern labour relations and establishes mutual rights  and duties/obligations between the employer and the employee. The law seeks to ensure that  these rights and duties/obligations are clearly defined and that each party acts within the limits  of the law.

Several legislations and legal instruments govern employment relationships in Nigeria,  including:

1. The Labour Act, Cap L1, Laws of the Federation of Nigeria 2004.
2. The Employee’s Compensation Act, 2010.
3. The Trade Unions Act Cap T14, Laws of the Federation of Nigeria 2004 (as amended) 4. The National Industrial Court Act, 2006.
4. The National Industrial Court Rules, 2007.
5. Pension Reform Act, 2014.
6. International Labour Organisation (ILO) Conventions.

These laws collectively ensure that the employment relationship is regulated, workers are  protected, and employers fulfil their statutory obligations.

Who is an Employee? 

Under the Employee’s Compensation Act,2010, an employee is defined as any person  employed by an employer under either an oral or written contract—whether the employment  is continuous, part-time, temporary, or casual. This definition includes apprentices and  domestic workers (not being family members of the employer) and extends to individuals  working within federal, state, and local government agencies, covering both the formal and  informal sectors.

Rights of an Employee 

Employees are entitled to numerous rights under Nigerian law. These include:

1.  Right to remuneration/payment for work done.
2. Right to a written contract of employment detailing terms and conditions.
3. Right to a safe work environment and the provision of protective gear/clothing.
4. Right to Pension contribution.
5. Right to dignity of person.
6. Freedom from discrimination in the workplace.
7. Right to fair and respectful treatment.
8. Right to be promoted.
9. Right to earn the same wages as his colleague of equal rank and qualification subject to  certain conditions.
10. Right to terminate employment with requisite notice.
11. Right to seek legal redress for violations of employment rights.
12. Right to sick leave and annual paid holiday.
13. Right to maternity leave, as provided by law.

Duties of Employees 

Employees equally owe their employers specific duties, both at common law and by statute.  These include:

1. Duty of readiness and willingness to work.
2. Duty of care, diligence, and skill in performing tasks.
3. Duty to obey lawful and reasonable instructions (as long as such orders are not illegal  or dangerous). In Turner v Mason (1845), the court held that disobedience was a ground  for dismissal.
4. Fidelity and faithfulness—loyalty to the employer’s interests.
5. Duty to maintain workplace safety.
6. Duty of confidentiality regarding trade secrets and business information. 7. Duty to not disrupt the employer’s business.
7. Duty to account for any profits received in the course of employment. 9. Duty to handle employer’s property with care and responsibility.

Who is an Employer? 

The Labour Act Cap L1, Laws of the Federation of Nigeria 2004 defines an employer as any  person who employs another under a contract of employment, either for himself or on behalf of another, and includes agents and legal representatives.

Similarly, the Employee’s Compensation Act, 2010 expands the definition to include any  individual, corporate body, government (federal, state, or local), or agency entering into an  employment contract with an employee or apprentice.

Duties of Employers to Employees 

Employers are legally bound to perform specific duties to their employees, which include:

1. Provision of work, particularly where such work sustains the employee’s income or  professional growth.
2. Payment of wages and benefits, including allowances, pensions, and incentives. 3. Provision of a safe and conducive working environment.
3. Respectful treatment and protection against harassment or discrimination.
4. Inclusion and equity in the workplace, including accommodations for persons with  disabilities.
5. Promotion of occupational health and safety, including risk assessment and emergency  medical care.
6. Compliance with wage standards, such as the national minimum wage for workers.

Rights of Employers 

Employers are also entitled to certain rights under the employment relationship, such as: 1. Right to hire qualified and competent staff.

2. Right to expect quality work and performance.
3. Right to loyalty and good faith from employees.
4. Ownership of intellectual or tangible products created during work hours using the  employer’s resources.
5. Right to lawfully terminate an employee’s contract as stipulated.
6. Right to seek legal redress against employees who violate contractual obligations. 7. Right to indemnity.

Jurisdiction over Employer-Employee Disputes 

The National Industrial Court of Nigeria (NICN) has exclusive jurisdiction over all labour and  employment disputes. This is established under the Constitution of the Federal Republic of  Nigeria and the National Industrial Court Act, 2006.

However, members of the Armed forces, including military personnel, are subjected to the  Court Martial, not the National Industrial Court of Nigeria.

Where an employment contract includes a clause mandating alternative dispute resolution  (ADR) mechanisms such as arbitration or mediation before resorting to litigation, such must  be complied with in accordance with the principle of pacta sunt servanda—that agreements  must be kept.

Conclusion 

Employer-employee relationships in Nigeria are governed by a framework of laws and judicial  precedents aimed at balancing the rights and responsibilities of both parties. While employees  are entitled to fair treatment, safety, and compensation, they are also expected to be diligent,  loyal, and respectful of their employer’s business. Likewise, employers must fulfil their  statutory duties and contractual obligations.

Understanding and complying with these duties and rights not only promotes industrial  harmony but also helps prevent unnecessary disputes and liabilities under Nigerian contract  law.

REFERENCES

1. Analyzing the Duties of Employer and Employee in the Nigerian Law Emuobo Emudainohwo,Beijing Law Review>Vol.12 No.2, June 2021 (Accessed 25th June,2025)
2. https://aocsolicitors.com.ng/the-legal-rights-and-obligations-of-employers-and-employees-in-nigeria/ (Accessed 26th June,2025)
3. Turner v Mason (1845) 13 M& W 112.