- Overview: Nigeria
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
Global HR Compliance in Nigeria
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Nigeria Guide below will help you understand the nuances of labor legislation in the country.
Companies hire international workforce for various reasons but in most cases they are:
- entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
- hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.
Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.
If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Nigeria, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Nigeria and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.
We are experts in global workforce employment in , and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Nigeria.
See the guide below for a general overview of labor rules and regulations in Nigeria or contact us if you need to employ workers in Nigeria or would like to get more details.
Hiring and Firing Workforce in Nigeria Guide
# Employment Contracts
Contract of employment in Nigeria may be concluded for a definite or an indefinite period of time. Contract type notwithstanding, employers are obligated to provide a written contract to their employees no later than 3 months of commencing employment. A written contract of employment must contain the necessary details about the parties of employment, nature of job, commencement date, place of work, working hours and days, compensation, time and frequency of payment, annual leave, sick leave and benefits, holidays and other special terms of the contract (if any). Contract of employment may be amended by mutual consent, provided the employer informs the employee within one-month before effecting the change.
# Minimum statutory employment rights
# Hours of work
There are legal limits as to the maximum number of hours an employee may work per day/week. Generally, the maximum hours of work are determined by both parties in the contract, by industrial wages board or by trade union. All employees are entitled to 24 hours of continuous rest period in every calendar week. Employees whose regular working time is more than 6 hours per day are entitled to a minimum of one-hour break per day.
# Probation period
The law is silent about the maximum period of probation an employee may be placed on. Ordinarily, probation period is given to last for 3 to 6 months, subject to the position an employee is hired to hold.
# Annual leave
Employers must not stop their employees from taking a paid day off during the 11 legally approved holidays. Additionally, employees must be given 6 days of paid vacation annually after they have worked a minimum of one year in the company.
# Parental leave
Female employees are entitled to 12 weeks of maternity leave with 50% pay of their normal earnings or more. Maternity leave must be taken in such a way that 6 weeks will be used during pregnancy and the remaining 6 weeks, after child delivery. Breastfeeding mothers are entitled to 30-minute break twice a day to care for their babies.
# Sick leave
Employers are obligated to give 12 days of paid leave to their employees to treat themselves when they are sick.
Overtime is considered as any hours of work that is in excess of the maximum hours fixed in individual contract, by industrial wages board or by trade union. There is no statutory regulation on the compensation of overtime.
# State minimum salary
The current minimum wage in Nigeria, applicable from 2011, is 18,000 naira per month (was $115 but following the recent devaluation of the naira has fallen to $58, or $38 using the parallel market rate). Employees are entitled to free transport if they commute at least 9.94 miles to work daily.
# Employment termination
Employees and employers have the right to end their employment relationship by terminating their contractual agreement. The most common method of terminating a contract of employment is by the delivery of a written notice of termination of the contract on the opposite party. Where a notice of termination is served, the contract automatically terminates at the expiration of the period of the notice of termination. Either party could equally elect to pay compensation in lieu of the employee working for the employer during the period of the notice of termination.
Nigerian courts do not grant specific performance of contracts of employment in the private sector because the courts will not impose an employee on an unwilling employer, neither will it impose an employer on an unwilling employee. The principle of freedom of contract is strictly adhered to in Nigeria.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Nigeria by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.