Nigerian House of Representatives Introduces Bill to Criminalize Delayed Salary Payments by Employers

The Nigerian House of Representatives has put forward a bill that aims to make the delayed or failed payment of employees’ salaries by employers and corporate entities a criminal offense in the country. Sponsored by Wale Hammed, a House member representing the Agege Federal constituency in Lagos State, the bill, titled ‘The Employees Remuneration Protection Bill, 2023’, has passed its first reading.

According to the bill, it would be deemed unlawful for any employer to refuse or neglect to pay the remuneration of their employees as stipulated under the Act. If an employee’s compensation remains unpaid beyond the specified period allowed by the legislation, the employee may submit a written demand to their employer for the payment of their entitlement.

Should an employer fail to remit payment within five business days following the service of a demand, the employee is empowered to petition the court for redress by filing a motion on notice. Employers found guilty of failing to pay their workers’ salaries could face imprisonment ranging from three to six months without the possibility of a fine.

The bill also imposes penalties on corporate entities that fail to comply with court orders regarding the remuneration of their employees. Such entities risk a daily fine of N10,000 or being sealed off for a period not exceeding three months, provided the default extends beyond two months. Additionally, officers or agents of organisations found to have knowingly permitted such defaults could face a N10,000 penalty until compliance is achieved.

Furthermore, the bill places obligations on employers to provide written terms of employment to returning employees within fourteen working days, outlining comprehensive terms and conditions, remuneration, payment methods, employment character, and termination procedures. Employees petitioning the court for remuneration are protected from disciplinary action, inquiry, suspension, or termination by their employer.

In the event of an employer’s bankruptcy, the bill prioritizes the payment of outstanding remuneration to employees. The proposed legislation seeks to ensure the protection of employees’ rights regarding timely payment of salaries and transparent employment terms.

Source: Peoples Gazette