Contract of employment is defined under section 91 of the Labour Act 2004 as “an agreement whether oral or written, express or implied whereby one person agrees to employ another as a worker and that person agrees to serve the employer as a worker”.

The main legislation that regulates employment and labour relations in Nigeria is the Labour Act Cap L1, Laws of the Federation of Nigeria 2004 (the Act). Other legislation regulating contract of employment include;

The constitution of the Federal Republic of Nigeria
The Trade Unions Act 2004
The Trade Dispute Act 2004
The National Industrial Court Act 2006

Element of contract of employment

The element of the contract of employment is dependent on the right and obligations of the employer and employee. In a contract of employment, an employer must give the employee a written contract within three (3) months of the commencement of the employment according to Section 7 of the Act. The provisions of the contract of employment regulate the relationship between employer and employee.

A written contract of employment must contain the following according to the provisions of the Act:

• It must contain the name of the employer or group of employers
• The name and address of the employee, the date and place of his engagement
• The nature of the employment
• If the contract is for a fixed term, it must state the date the contract expires.
• The appropriate period of notice to be given by the party wishing to terminate the contract.
• The rate of wages/salaries and method of calculation, the manner and periodicity of payment of wages.
• Any terms and condition relating to; hours of work; holiday and holiday pay; incapacity to work due to sickness, injury and provisions for a sick day if any and insurance etc
• And finally any special conditions of the contract.

Before signing any employment agreement, it’s essential to have a clear understanding of the terms. Our contract review service is built to safeguard your rights, offering in-depth evaluations to spot any potential risks and ensure your best interests are well-represented and protected. We empower you to enter agreements with full confidence and legal insight.