1.
Sources of Nigerian Labour Law
Legislations
Common law
Nigerian Constitution
Precedents
ILO Conventions and Recommendations
The African Charter
2. Individual Labour Relations
Contract of Employment
How to distinguish between a contract of service and contract for service
Rights and obligations of employers and employees
Termination of the contract of employment
Wrongful dismissal
Health and safety at work
Employees compensation for injuries and death in the course of employment
3. Collective Labour Relations
Trade unions
Registration of and legal status of a trade union
Collective bargaining and collective agreements
Freedom of association and the right to strike
ILO Conventions 87 and 98
Strikes and lock-outs
Trade disputes
Trade dispute settlement procedure
The role of the National Industrial Court in the settlement of trade dispute
Alternative dispute resolution (ADR)
Trade disputes in essential services
Pension reform in Nigeria
The sources of Nigerian Labour law include
- Received English Law:
- Nigerian Case Law (Decisions of Nigerian Courts)
- Workplace Notices and Documents (Rule Books and Handbooks)
- Nigerian Statutes
- The Nigerian Constitution
- The Labour Act, Laws of the Federation of Nigeria 2004
- Guidelines for the Release of Staff in the Nigerian Oil and Gas Industry, 2019
- Employees' Compensation Act 2010
- Factories Act, Chapter F1, LFN 2004
- Finance Act 2020
- National Housing Fund Act, Chapter N45, LFN 2004
- Nigerian Oil and Gas Industry Content Development Act 2010
- Trade Disputes Act, Chapter T8, LFN 2004
- Nigeria Data Protection Regulation 2019
Legislations are laws that have been enacted by a governing body or parliament. They are rul
es and regulations that must be followed by a specific jurisdiction or country. Here are some
examples of legislations in Nigeria :
- Data Protection Act: Enacted to protect the personal information and data of Nigerian citize
ns
- Nigeria Data Protection Regulation: Provides legal safeguards for processing personal data
- Implementation Framework for the Nigeria Data Protection Regulation: Guides data control
lers and administrators in implementing data protection
- Guidelines for the Management of Personal Data by Public Institutions in Nigeria: Mandate
s public institutions to protect personal data
- Constitution of the Federal Republic of Nigeria 1999: Provides Nigerian citizens with the fu
ndamental right to privacy
- Child Rights Act 2003: Restates the constitutional right to privacy for children
- Consumer Code of Practice Regulations 2007: Requires licensees to protect customer infor
mation
- Consumer Protection Framework 2016: Prohibits financial institutions from disclosing custo
mers' personal information
- Credit Reporting Act 2017: Establishes the legal framework for credit reporting
- Cybercrimes (Prohibition, Prevention Etc) Act 2015: Prohibits and prevents cybercrimes
- Freedom of Information Act 2011: Seeks to protect personal privacy
- National Identity Management Commission (NIMC) Act 2007: Manages the national identit
y management system
- National Health (NH) Act 2014: Provides rights and obligations for healthcare personnel an
d patients
- Nigerian Communications Commission (Registration of Telephone Subscribers) Regulation
2011: Provides confidentiality for telephone subscribers
The Common Law is a legal system that originated in England and is based on judicial decis
ions made by judges in the course of resolving disputes. It is distinguished from Civil Law sy
stems, which are based on written laws and codes.
The Common Law system is characterized by:
1. Judge-made law: Judges' decisions in previous cases (precedents) guide decisions in simila
r cases.
2. Discretionary judgments: Judges have flexibility to consider circumstances and make decis
ions based on the facts of each case.
3. Stare decisis: The principle of standing by previous decisions, ensuring consistency and pr
edictability.
4. Evolutionary nature: The law develops and adapts through judicial decisions, rather than th
rough statutes and codes.
Common Law areas include:
1. Contract law
2. Tort law
3. Property law
4. Family law
5. Criminal law (in some jurisdictions)
The Common Law system is used in many countries, including the United States, Canada, Au
stralia, and the United Kingdom.
Some key features of the Common Law system include:
1. Flexibility and adaptability
2. Consistency and predictability
3. Discretion and fairness
4. Evolutionary nature, allowing the law to adapt to changing societal needs.
The Nigerian Constitution is the supreme law of the Federal Republic of Nigeria. It was est
ablished in 1999 and is divided into 306 sections. Here are some of the key aspects of the Nig
erian Constitution :
- Citizenship: Defines who is a citizen of Nigeria by birth and registration
- Judicial powers: Provides for the jurisdiction of the Supreme Court and other lower courts
- Fundamental Rights: Ensures equality, freedom, and justice for all citizens
- Directive Principles of State Policy: Guides the government in promoting economic, social,
and cultural development
- Structure and Powers of Government: Defines the organization and powers of the legislative,
executive, and judicial branches at both federal and state levels
- Amendments: Provides procedures for altering the constitution
- Transitional Provisions: Deals with the process of transferring authority from the military to
civilian rule
- Schedules: Includes supplementary information, such as oaths of office and the composition
of legislative bodies
Precedents
Precedents are previous court decisions or rulings that serve as a basis or guide for deciding
similar cases in the future. In the Common Law system, precedents are binding or persuasive
authorities that help judges make consistent and predictable decisions.
Types of precedents:
1. Binding precedents: Must be followed by lower courts in the same jurisdiction.
2. Persuasive precedents: Not binding but influential in deciding similar cases.
3. Landmark precedents: Significant and influential decisions that set a new legal standard.
4. Leading precedents: Well-known and widely followed decisions.
5. Obiter dictum: Non-binding comments or observations made by a judge in a decision.
Precedents play a crucial role in the development of the law, as they:
1. Establish legal principles and rules
2. Provide consistency and predictability
3. Guide judicial decision-making
4. Help to clarify ambiguous laws or regulations
5. Contribute to the evolution of the law over time.
In the Common Law system, precedents are essential to ensuring that the law is applied fairly
and consistently, and that judges are held accountable for their decisions.
ILO Conventions and Recommendations
The International Labor Organization (ILO) Conventions and Recommendations are internati
onal labor standards created by the ILO's members (governments, employers, and workers) ¹:
- Conventions and Protocols: Legally binding international treaties that member states can rat
ify
- Recommendations: Non-binding guidelines that supplement Conventions or stand alone
Key points about ILO Conventions and Recommendations include ¹:
- Adopted at the annual International Labour Conference by representatives of governments,
employers, and workers
- Member states must submit adopted standards to their competent authority (usually parliam
ent) within 12 months for consideration
- Ratifying countries must apply Conventions in national law and practice and report on their
application at regular intervals
- Technical assistance and representation and complaint procedures are available for countrie
s that violate ratified Conventions
The African Charter
The African Charter on Human and Peoples' Rights, also known as the Banjul Charter, is an
international human rights instrument that aims to promote and protect human rights and
fundamental freedoms in Africa ¹. The key aspects of the charter include :
- Recognition of civil and political rights, including freedom from discrimination, equality,
and freedom of movement
- Recognition of economic, social, and cultural rights, including the right to work, health, and
education
- Recognition of peoples' rights and group rights, including the right to self-determination and
the right to development
- Duties of individuals and peoples, including the duty to preserve national independence and
contribute to the promotion of African unity
- Establishment of the African Commission on Human and Peoples' Rights to oversee and
interpret the Charter
- Creation of the African Court on Human and Peoples' Rights to enforce the Charter
Contract of Employment
A Contract of Employment, also known as an employment contract or service agreement, is a
legal agreement between an employer and an employee that outlines the terms and conditions
of the employment relationship. It defines the rights, responsibilities, and obligations of both
parties, including:
1. Job description and responsibilities
2. Compensation and benefits (salary, wages, bonuses, etc.)
3. Working hours and conditions
4. Leave and vacation entitlements
5. Termination clauses (notice periods, severance pay, etc.)
6. Confidentiality and non-disclosure agreements
7. Intellectual property rights
8. Dispute resolution processes
9. Employee conduct and discipline procedures
10. Legal jurisdiction and governing law
The contract can be:
1. Written (explicit)
2. Implied (based on actions and circumstances)
3. Oral (verbal agreement)
Having a clear and comprehensive Contract of Employment protects both the employer and
employee by:
1. Preventing misunderstandings
2. Establishing expectations
3. Providing legal protection
4. Facilitating a smooth working relationship
Note: Employment contracts may vary depending on the country, state, or region, so it's
essential to familiarize yourself with local labor laws and regulations.
How to distinguish between a contract of service and contract for service
A contract of service and a contract for service are both agreements between two parties, but
they differ in their purpose, nature, and legal implications:
Contract of Service (Employment Contract):
- A contract where one party (the employee) agrees to work for another party (the employer)
in exchange for compensation and benefits.
- The employer has control over the employee's work and duties.
- The employee is considered part of the employer's business.
- Tax deductions and benefits are typically handled by the employer.
- Example: An employee working for a company.
Contract for Service (Independent Contractor Agreement):
- A contract where one party (the contractor) agrees to provide services to another party (the
client) in exchange for payment.
- The contractor has control over their work and duties.
- The contractor is not considered part of the client's business.
- Tax deductions and benefits are typically handled by the contractor.
- Example: A freelancer working for a client.
Key differences:
- Level of control: Employer has control in a contract of service, while the contractor has
control in a contract for service.
- Employment status: Contract of service implies employment, while contract for service
implies independent contracting.
- Tax responsibilities: Employer handles taxes in a contract of service, while the contractor
handles taxes in a contract for service.
It's important to note that the specific terms and conditions of each contract can vary, and the
distinction between the two types of contracts can sometimes be blurry. Seeking legal advice
can help ensure accurate classification and compliance with relevant laws and regulations.
Rights and obligations of employers and employees
Employers have various rights and obligations towards their employees, including:
Rights:
1. Expectation of loyalty and honesty
2. Right to direct and control work
3. Right to discipline and terminate employment (following legal procedures)
4. Right to confidential information and intellectual property
5. Right to require employees to follow company policies and procedures
Obligations:
1. Provide a safe and healthy work environment
2. Pay fair wages and benefits
3. Provide equal opportunities and non-discrimination
4. Respect employees' privacy and personal information
5. Provide necessary training and development opportunities
6. Comply with labor laws and regulations (e.g., minimum wage, working hours, leave)
7. Provide written contracts and clear job descriptions
8. Handle grievances and disputes fairly and promptly
9. Respect employees' freedom of association and collective bargaining
10. Comply with legal requirements for termination and severance pay
Note that these rights and obligations may vary depending on the country, state, or region, so
it's essential to familiarize yourself with local labor laws and regulations.
Some key laws and regulations that govern employer-employee relationships include:
- Nigerian Labour Law
- The Trade Union Act
- The Trade Disputes Settlement Act
- Employee Compensation Act
- Factories Act
- Pension Reform Act
It's important for employers to understand their rights and obligations to maintain a positive a
nd compliant work environment.
Employees have various rights and obligations towards their employers, including:
Rights:
1. Right to fair compensation and benefits
2. Right to a safe and healthy work environment
3. Right to equal opportunities and non-discrimination
4. Right to privacy and protection of personal information
5. Right to freedom of association and collective bargaining
6. Right to file grievances and complaints
7. Right to paid leave and holidays (as applicable)
8. Right to workers' compensation (if injured on the job)
9. Right to unemployment benefits (if terminated)
10. Right to a harassment-free workplace
Obligations:
1. Duty of loyalty and honesty
2. Obligation to follow company policies and procedures
3. Obligation to maintain confidentiality and protect employer's proprietary information
4. Obligation to perform duties as assigned and meet performance expectations
5. Obligation to respect and follow instructions from supervisors and managers
6. Obligation to maintain a professional and respectful work environment
7. Obligation to report any workplace hazards or safety concerns
8. Obligation to comply with labor laws and regulations
9. Obligation to respect employer's intellectual property and trade secrets
10. Obligation to return employer's property upon termination (e.g., equipment, documents)
Note that these rights and obligations may vary depending on the country, state, or region, so
it's essential to familiarize yourself with local labor laws and regulations.
Some key laws and regulations that govern employee rights and obligations are as indicated
above.
It's important for employees to understand their rights and obligations to maintain a positive a
nd compliant work environment.
Termination of the contract of employment
An employment contract can be terminated in several ways, including:
1. Expiration of a fixed-term contract: The contract ends on a specific date or after a specific
project.
2. Mutual agreement: Both parties agree to terminate the contract.
3. Notice: One party gives the other party notice, usually in writing, to terminate the contract
(e.g., resignation, termination letter).
4. Breach of contract: One party fails to fulfill their obligations, allowing the other party to
terminate.
5. Termination with cause: Employer terminates due to employee misconduct, poor
performance, or other valid reasons.
6. Termination without cause: Employer terminates without a specific reason, usually with
notice or severance pay.
7. Redundancy: Employer terminates due to business needs, restructuring, or downsizing.
8. Retirement: Employee reaches a certain age or retires.
9. Death: Employee passes away.
10. Disability: Employee becomes unable to work due to illness or injury.
11. Force majeure: Unforeseen circumstances beyond the parties' control (e.g., natural
disasters, war).
12. Liquidation: Employer becomes insolvent or goes out of business.
The specific circumstances and procedures for termination may vary depending on the
employment contract, labor laws, and jurisdiction. It's essential for both parties to understand
their rights and obligations regarding termination.
Wrongful dismissal
Wrongful dismissal is a legal concept that describes the unlawful termination of employment
by reason of a breach or breaches of the terms of the employment contract ¹. Here are some k
ey points you should know about wrongful dismissal.
- It occurs when an employee is terminated without reasonable notice or severance pay.
- Common examples of wrongful dismissal include:
- Failure to give adequate notice according to the employment contract
- Failure to pay adequate severance pay
- Termination without cause or compensation
- Termination in breach of the terms of the contract
- Dismissing an employee on the spot without letting them work out their full contractual noti
ce period
- Dismissing an employee without paying them in lieu of notice
- Failing to follow a contractual dismissal procedure
- Unlawfully terminating a fixed-term contract prior to expiry of the term
- An employer dismissing employees as a result of gross misconduct, such as theft, if the emp
loyee was justified in dismissing them in this way
- There is no qualifying service requirement for wrongful dismissal, unless the employee is di
smissed within the first month of employment without notice or pay in lieu
- The compensation for a wrongful dismissal claim can vary, depending on the nature of the c
ontractual breach upon which the claim is based
Health and safety at work
Health and Safety at work entails the measures and practices put in place to ensure the well-
being and protection of employees, visitors, and contractors from harm, injury, or illness
while on the job or in the workplace. It involves:
1. Risk assessments and management
2. Hazard identification and control
3. Safe work procedures and training
4. Personal protective equipment (PPE) provision
5. Regular inspections and maintenance
6. Incident reporting and investigation
7. Compliance with laws and regulations
8. Employee participation and consultation
9. First aid and emergency response planning
10. Continuous monitoring and review.
The goal is to create a safe and healthy work environment, minimizing the risk of accidents,
injuries, and illnesses, and promoting a culture of safety and well-being.
Some key areas of focus include:
- Physical hazards (e.g., slips, trips, falls)
- Chemical hazards (e.g., hazardous substances)
- Biological hazards (e.g., infectious diseases)
- Ergonomic hazards (e.g., repetitive strain injuries)
- Psychological hazards (e.g., stress, harassment)
Employers have a legal and moral responsibility to ensure a safe and healthy work
environment, and employees have a right to refuse unsafe work and report hazards.
Employees compensation for injuries and death in the course of employment
Employee compensation for injuries and death in the course of employment entails.
- Death, injury, disability, or disease of an employee arising from or in the course of
employment
- Employer's duty of care and liability for compensation
- No-fault compensation scheme, providing compensation regardless of who is at fault
- Compensable injuries include those sustained during work hours, on the employer's
premises, or while performing job-related tasks
- Benefits and compensation structure includes medical expenses, temporary or permanent
disability benefits, and survivor benefits for dependents in case of death
- Scale of compensation varies based on the nature of the injury or death
- Employer's obligations include reporting accidents, facilitating medical examinations, and
ensuring compliance with the compensation process
- Employees' Compensation Fund managed by the Nigeria Social Insurance Trust Fund
(NSITF) serves as the financial pool for compensation payments
The Employee's Compensation Act of 2010 is a Nigerian social security and welfare scheme
that provides comprehensive compensation to employees who suffer from occupational
diseases or sustain injuries arising from accidents at the workplace or in the course of
employment .The main features of the Act are as follows .
- Provides an open and fair system of guaranteed and adequate compensation.
- Provides rehabilitation to employees with work-related disabilities.
- Establishes and maintains a solvent compensation fund.
- Provides a fair and adequate assessment for employers.
- Provides an appeal procedure that is simple, fair, and accessible, with minimum delays.
- Combines efforts and resources of relevant stakeholders for the prevention of workplace
disabilities.
- Applies to all employers and employees in both the public and private sectors.
- Establishes a no-fault compensation scheme.
- Defines compensable injuries as those arising out of or in the course of employment.
- Outlines the types of benefits employees are entitled to in case of injuries, disabilities, or
death.
- Specifies the obligations of employers in promptly reporting accidents, facilitating medical
examinations, and ensuring compliance with the compensation process.
- Mandates the creation of the Employees Compensation Fund, managed by the Nigeria
Social Insurance Trust Fund (NSITF)
TRADE UNIONS
Here are the objectives and functions of trade unions ¹:
Objectives:
- Regulate the terms and conditions of employment of workers
- Improve the working conditions of employees
- Resolve industrial conflicts between workers' representatives and management
- Represent workers' interests
- Achieve workers' desires of ending wage slavery and transforming society
Objectives may vary based on the school of thought
Functions:
- Organizing workers
- Negotiating with management
- Conducting strikes
- Engaging in politics and legislation
- Governance
- Collective bargaining
- Regulating relations between employers and workers
- Providing education and organization on revolutionary leadership
- Eliminating capitalist societies
Registration of and legal status of a trade union
Here are some points that explain the registration of and legal status of a trade union
- In Nigeria, the Trade Union Ordinance requires all trade unions to be registered to attain leg
al status and conduct activities
- Although the Trade Union Ordinance has been repealed, the current statute still requires co
mpulsory registration of trade unions
- Upon registration, a trade union acquires the status of an incorporated body
- In Nigeria, the Supreme Court has held that a registered trade union is a legal person
- The Trade Union Act (TUA) does not directly address the legal personality of a trade union,
but it implies that trade unions have some legal personality by allowing them to enter into con
tracts, sue and be sued in their own name
- The TUA also provides that trade unions can be prosecuted for offences and have judgment
s enforced against their property as if they were incorporated bodies
- Trade unions have a special status under the TUA that allows them to sue and be sued in the
ir own name, making them distinct from other unincorporated bodies
Here are the requirements for registration of a trade union in Nigeria :
- The trade union must submit an application to the Registrar of Trade Unions.
- The trade union must provide its name and objectives.
- The trade union must provide a list of its members.
- The trade union must provide its constitution.
- The trade union requires a minimum of 50 members, for employees union, and 2 members
for employers union, to append their signature on the form to be submitted to the Registrar of
Trade Union.
- The trade union must show that it is independent and not a branch of an existing trade union.
- The trade union must show that it is not a body that is excluded from registering as a trade u
nion under the Trade Unions Act.
- The trade union must pay the required registration fee.
- The trade union must submit any other document that may be required by the Registrar of T
rade Unions.
Collective bargaining and collective agreements
From the International Labour Organization (ILO) perspective, Collective Bargaining is defin
ed as:
"Collective bargaining is a process of negotiation between employers and workers' representa
tives, aimed at reaching a collective agreement that regulates the terms and conditions of wor
k, including wages, working hours, and other benefits. It is a fundamental principle of social
dialogue and a key instrument for promoting fair labor standards, social justice, and decent w
ork."
The ILO emphasizes that collective bargaining:
- Is a voluntary process
- Involves negotiations between equal partners
- Aims to reach a mutually beneficial agreement
- Covers all aspects of work, including wages, benefits, and working conditions
- Is essential for promoting social dialogue, industrial peace, and economic growth
The ILO also highlights the importance of collective bargaining in promoting:
- Fair labor standards
- Social justice
- Decent work
- Social dialogue
- Industrial peace
- Economic growth
Overall, the ILO sees collective bargaining as a crucial mechanism for promoting fair and eq
uitable labor practices, and for fostering positive industrial relations between employers and
workers.
The purpose of a Collective Agreement in employment and labor relations is to:
1. Establish terms and conditions of employment
2. Regulate the relationship between employers and employees
3. Set standards for wages, benefits, and working conditions
4. Provide job security and protection for employees
5. Promote fair labor practices and social justice
6. Enhance industrial peace and stability
7. Foster cooperation and partnership between employers and employees
8. Provide a framework for resolving disputes and grievances
9. Protect employees' rights and interests
10. Improve working conditions and quality of life for employees.
Collective Agreements typically cover issues such as:
- Wages and salaries
- Working hours and overtime
- Leave and holidays
- Health and safety
- Training and development
- Promotions and transfers
- Discipline and grievance procedures
- Dispute resolution mechanisms
By establishing a Collective Agreement, employers and employees can work together to creat
e a positive and productive work environment, and to promote mutual understanding and resp
ect.
Freedom of association and the right to strike
Freedom of Association is the right of individuals to form and join associations, trade unions,
and organizations without interference or restriction from the state or others. In the context of
international instruments and the Nigerian 1999 Constitution, Freedom of Association is
defined as:
International Instruments:
- Universal Declaration of Human Rights (UDHR), Article 20: "Everyone has the right to
freedom of peaceful assembly and association."
- International Labour Organization (ILO) Convention 87, Article 3: "Workers and employers
shall have the right to establish and join organizations of their own choosing."
- International Covenant on Civil and Political Rights (ICCPR), Article 22: "Everyone shall
have the right to freedom of association."
Nigerian 1999 Constitution:
- Section 40: "Every person shall be entitled to assemble freely and associate with other
persons."
- Section 42: "Every person shall have the right to freedom of association."
In Nigeria, Freedom of Association is a fundamental right that includes the right to form and
join trade unions, political parties, and other organizations. The Constitution and international
instruments protect this right, ensuring that individuals can freely associate without fear of
reprisal or restriction.
The right to strike is the right of employees to collectively refrain from working, temporarily
or indefinitely, to protest against certain conditions or demands related to their employment,
working conditions, or social and economic interests. It is a fundamental right of workers,
recognized by international labor standards and national laws, aimed at:
1. Promoting collective bargaining and negotiations
2. Protecting workers' interests and rights
3. Protesting against unfair labor practices or policies
4. Advocating for better wages, benefits, and working conditions
5. Expressing grievances and seeking redress
The right to strike includes:
1. The right to organize and participate in strikes
2. The right to picket and demonstrate peacefully
3. The right to refuse to work without fear of reprisal or retaliation
4. The right to engage in collective action to achieve common goals
However, the right to strike is not absolute and may be subject to limitations and restrictions,
such as:
1. Notice requirements
2. Prohibition in essential services
3. Arbitration and mediation procedures
4. Restrictions on violent or destructive behavior
The right to strike is a powerful tool for workers to negotiate and improve their working
conditions, and it is an essential aspect of freedom of association and collective bargaining.
Freedom of Association and the right to strike are not absolute rights. While international
instruments and national constitutions protect these rights, they are subject to limitations and
restrictions. Here are some limitations:
1. Peaceful and lawful: The exercise of freedom of association and the right to strike must be
peaceful and lawful.
2. Public order and safety: Restrictions may be imposed to maintain public order and safety.
3. National security: Measures may be taken to protect national security.
4. Protection of rights of others: The rights of others, including employers and the general
public, must be respected.
5. Reasonable restrictions: Restrictions may be imposed if they are reasonable, necessary, and
proportionate to the interest being protected.
6. Strike notice: In some countries, workers are required to give notice before going on strike.
7. Essential services: Strikes may be limited or prohibited in essential services like
healthcare, emergency services, and utilities.
8. Arbitration and mediation: Disputes may be subject to arbitration and mediation before
striking.
The International Labour Organization (ILO) and national courts have established these
limitations, balancing the rights of workers with the needs of employers, the public, and the
state.
In Nigeria, the Trade Disputes Act and the Labour Act regulate the right to strike, imposing
notice requirements and limitations on strikes in essential services.
ILO Conventions 87 and 98
The ILO Convention 87, also known as the Freedom of Association and Protection of the Ri
ght to Organise Convention, has several provisions, including :
- Recognition of the right to freedom of association and the right to organize
- Protection of workers and employers from interference in their right to organize
- The right to form and join organizations, including trade unions
- The right to collective bargaining
- The right to strike
- Protection of workers against discrimination and reprisal for exercising their right to freedo
m of association
- Ensuring that workers' and employers' organizations are free from government interference
- Ensuring that the state does not impose any restrictions on the exercise of the right to organi
ze.
The provisions of ILO Convention 98, also known as the Right to Organise and Collective
Bargaining Convention, 1949, are:
- Protection of the right to organise and collective bargaining
- Freedom for workers and employers to establish and join organisations
- Promotion and protection of the right to collective bargaining
- Prevention of discrimination against workers and employers involved in organisational activ
ities
- Ensuring the protection of workers' and employers' organisations from interference or domi
nation by each other or the government
- Ensuring the responsibility of the government to take measures to promote voluntary negoti
ations and collective bargaining
Strikes and lock-out
In employment and labor relations, strikes and lock-outs are two different forms of labor disp
utes, with distinct characteristics:
Strike:
- A strike is a work stoppage initiated by employees or a union to protest against certain cond
itions or demands related to employment, wages, benefits, or working conditions.
- Employees collectively refuse to work, temporarily or indefinitely, to pressure the employer
to meet their demands.
- Strikes are usually called by the union or employee representatives.
Lock-out:
- A lock-out is a work stoppage initiated by the employer, where employees are prevented fro
m working, often in response to a labor dispute or union demands.
- The employer temporarily or indefinitely shuts down operations, excluding employees from
the workplace, to pressure them to accept the employer's terms or conditions.
- Lock-outs are usually initiated by the employer to counter a strike or to resist union demand
s.
Key differences:
- Initiation: Strike is initiated by employees/union, while lock-out is initiated by the employer.
- Purpose: Strike is to pressure the employer to meet employee demands, while lock-out is to
pressure employees to accept employer's terms.
- Control: In a strike, employees control the work stoppage, while in a lock-out, the employer
controls the work stoppage.
Both strikes and lock-outs can have significant impacts on employment, labour relations, and
the economy, and are often subject to labour laws and regulations.
Trade disputes
Trade disputes refer to disagreements between workers and their employer regarding specific
matters, such as :
- Terms and conditions of employment
- Wages and compensation
- Working hours and schedules
- Job security and unfair labor practices
- Trade union membership and recognition
- Health and safety in the workplace
- Equal opportunities and discrimination
To qualify as a trade dispute, the disagreement must meet certain criteria ¹:
- Be between workers and their current or former employer
- Relate to specified matters (as mentioned above)
- Be a genuine dispute (not a pretext for other motives)
- Meet statutory balloting requirements (if applicable)
Trade disputes can lead to various forms of industrial action, including strikes, picketing, and
boycotts. However, to be lawful, the action must be taken "in contemplation or furtherance of
a trade dispute" and meet specific conditions .
Here are some ILO instruments that support trade disputes :
- Freedom of Association and Collective Bargaining: This fundamental convention is essentia
l for trade disputes, as it enables workers to organize, bargain collectively, and participate in s
trikes.
- Freedom of Association (Agriculture, Non-Metropolitan Territories): This instrument exten
ds freedom of association protection to agricultural workers and those in non-metropolitan ter
ritories.
- ILO MNE Declaration: Interpretation and support for dialogue are provided through this de
claration, which aids in resolving trade disputes.
- Collective Bargaining Convention: Workers' and employers' representatives have the right t
o engage in collective bargaining, which is protected and promoted by this convention.
- Workers' Representatives Convention: This convention safeguards the rights of workers' rep
resentatives, ensuring their protection from discrimination and enabling them to perform their
duties effectively in trade disputes.
Trade disputes in essential services
Trade disputes in essential services have significant implications for labor relations, including:
1. Limitations on strike action: Governments often impose restrictions or bans on strikes in es
sential services, such as healthcare, emergency services, and utilities, to maintain public healt
h and safety.
2. Mandatory arbitration: Disputes in essential services may be subject to mandatory arbitrati
on, requiring parties to resolve disputes through binding arbitration rather than strike action.
3. Essential services legislation: Governments may enact legislation specifically regulating la
bor relations in essential services, imposing stricter rules and penalties for strike action.
4. Public interest considerations: Labor disputes in essential services may be subject to public
interest considerations, prioritizing the needs of the community over the interests of workers.
5. Heightened tensions: Trade disputes in essential services can lead to heightened tensions b
etween workers, employers, and governments, potentially escalating into wider labor conflict
s.
6. Impact on public opinion: Strikes in essential services can sway public opinion against wor
kers, potentially undermining their bargaining power.
7. Alternative dispute resolution: The need for alternative dispute resolution mechanisms, like
mediation and arbitration, may be more pressing in essential services to avoid strikes.
These implications highlight the complex interplay between labor rights, public interest, and
essential services, necessitating careful consideration in labor relations.
Trade dispute settlement procedure
The trade dispute settlement procedures in Nigeria include the following ¹ ² ³:
- Arbitration: The Arbitration and Mediation Act governs the arbitration process in Nigeria, w
hich is a widely used method for trade dispute resolution.
- Mediation: The Nigerian legal system has advanced and expanded the frontiers of ADR as a
n alternative dispute resolution mechanism in the settlement of labor disputes.
- Comparison with other jurisdictions: Nigeria has compared its trade dispute resolution proce
dures with other jurisdictions that have made headway in this regard.
- Reform of laws: There is a need to reform laws and stipulate time-bound resolutions for dis
putes.
- Protection of employers and employees: The settlement of trade disputes in Nigeria aims to
provide adequate protection to both employers and employees.
The role of the National Industrial Court in the settlement of trade dispute
The National Industrial Court of Nigeria plays a crucial role in settling trade disputes in the fo
llowing ways :
- Resolving disputes: The Court is responsible for hearing and resolving disputes related to e
mployers and employees, including terms and conditions of employment, health and safety of
workers, and workplace welfare.
- Interpreting labor laws: The Court interprets and applies various labor laws, including the T
rade Disputes Act, Trade Unions Act, Labour Act, and Employees Compensation Act.
- Adjudicating trade disputes: The Court adjudicates trade disputes, including strikes, lock-ou
ts, and industrial actions, and makes orders to restrain or allow such actions.
- Enforcing awards: The Court enforces awards made by arbitral tribunals in respect of trade
disputes.
- Registration of collective agreements: The Court registers collective agreements and ensure
s compliance with their terms.
- Alternative dispute resolution: The Court offers alternative dispute resolution techniques, su
ch as mediation and arbitration, to resolve trade disputes.
- Appeals: The Court hears appeals from the decisions of the Registrar of Trade Unions and o
ther administrative bodies.
- Jurisdiction: The Court has exclusive jurisdiction over trade disputes, and its decisions are b
inding and enforceable.
Alternative dispute resolution (ADR)
Alternate Dispute Resolution (ADR) refers to processes and techniques used to resolve disput
es between parties without resorting to litigation or court trials. ADR methods aim to provide
faster, cost-effective, and more flexible solutions than traditional litigation.
Alternative Dispute Resolution (ADR) can be used to resolve a wide range of disputes, includ
ing:
1. Commercial disputes: Contractual disputes, business partnerships, and commercial transact
ions.
2. Employment disputes: Workplace conflicts, labor disputes, and employee-employer disput
es.
3. Construction disputes: Building contracts, construction defects, and payment disputes.
4. Family disputes: Divorce, child custody, child support, and inheritance disputes.
5. Consumer disputes: Product liability, consumer complaints, and service disputes.
6. Intellectual property disputes: Patent, copyright, trademark, and trade secret disputes.
7. Real estate disputes: Property disputes, landlord-tenant disputes, and boundary disputes.
8. Insurance disputes: Policy disputes, coverage disputes, and claims disputes.
9. Personal injury disputes: Tort claims, negligence, and liability disputes.
10. International disputes: Cross-border disputes, international trade, and investment disputes.
11. Environmental disputes: Environmental damage, pollution, and land use disputes.
12. Technology disputes: IT contracts, software development, and technology licensing dispu
tes.
These are just a few examples of the types of disputes that can be resolved through ADR. The
process is flexible and can be adapted to suit various types of disputes.
Key features of ADR include:
1. Voluntary: Parties voluntarily agree to use ADR processes.
2. Flexibility: ADR methods can be tailored to suit specific disputes.
3. Confidentiality: ADR proceedings are often confidential.
4. Speed: ADR processes are generally faster than litigation.
5. Cost-effectiveness: ADR methods are often less expensive than litigation.
6. Informality: ADR proceedings are often less formal than court trials.
7. Finality: ADR decisions can be binding or non-binding, depending on the process.
8. Party autonomy: Parties have control over the process and outcome.
Common ADR methods include:
1. Arbitration
2. Mediation
3. Conciliation
4. Negotiation
5. Med-Arb (Combination of Mediation and Arbitration)
6. Online Dispute Resolution (ODR)
ADR offers many benefits, including:
1. Reduced costs
2. Faster resolution
3. Increased flexibility
4. Improved relationships
5. Greater control over the process
6. Enhanced creativity in resolving disputes
Overall, ADR provides an alternative to traditional litigation, offering a more efficient, flexib
le, and cost-effective approach to dispute resolution.
Here are some of the advantages of Alternative Dispute Resolution:
- Faster resolution: ADR resolves disputes faster than going to court
- Lower cost: ADR is cheaper than going to court
- More flexibility: ADR is less rigid than court proceedings
- Privacy: ADR is private and confidential, unlike public court trials
- Neutrality: ADR is neutral and unbiased, unlike court trials
- Less friction: ADR preserves rapport and relationships between parties
- Finality of awards: ADR awards are final and not subject to appeal
- Enforceability of awards: ADR awards are recognized and enforced across borders
- Party autonomy: ADR gives parties more control over the dispute resolution process and out
come
Here are some disadvantages of Alternative Dispute Resolution (ADR):
- Failure to resolve dispute: If ADR is unsuccessful, it can lead to a delay in court proceeding
s.
- Non-binding decisions: Except for arbitration, ADR is not usually legally binding.
- Consent of all parties is required: All parties to the dispute must agree to using ADR.
- No guarantee of resolution: ADR does not guarantee a resolution to the dispute.
- Ineffective third party: An ineffective third party can potentially hinder a resolution.
- Enforceability challenges: Unlike court judgments, ADR outcomes may be more challengin
g to enforce.
- Lack of legal precedent: ADR decisions do not create legal precedents in the same way cour
t judgments do.
- Unequal power dynamics: There may be a power imbalance between the parties involved in
ADR, especially in arbitration.
- Fees: The neutral mediator or arbitrator charges a fee for his or her services, which can be s
ubstantial.
- Delay: If the issues are not resolved in ADR, the parties must opt for lawsuits, which can b
e time-consuming.
Pension reform in Nigeria
The main objectives of the Pension Reform Act, 2014, are to:
- Ensure every individual who has worked receives their retirement benefits on time
- Assist individuals in saving for old age to reduce old age poverty
- Ensure pensioners do not suffer due to inefficient payment processes
- Establish a uniform set of rules and regulations for retirement benefits
- Reduce the growth of outstanding pension liabilities
Here are the main features of the Pension Reform Act 2014 :
- Ensuring prompt payment of retirement benefits to those who worked in the Public Service
of the Federation, Federal Capital Territory, or Private Sector
- Assisting individuals in saving for old age to reduce old age poverty
- Ensuring that pensioners do not suffer due to inefficient payment processes
- Establishing a uniform set of rules, regulations, and standards for the administration and pay
ment of retirement benefits
- Stemming the growth of outstanding pension liabilities
- Expanding coverage of the Contributory Pension Scheme (CPS) to the self-employed and in
dividuals working in organizations with less than three employees
- Mandating employers with three or more employees to remit pension contributions into the
Retirement Savings Accounts (RSAs) of their employees
Here are the pension contributory rates in Nigeria :
- Employee's contribution rate: 8% of the basic salary, housing allowance and transport
allowance
- Employer's contribution rate: 10% of the basic salary, housing allowance and transport
allowance
- Total contribution rate: 18% of the employee's monthly emoluments
- If the employer bears all contributions, the minimum contribution is 20% of the
monthly emoluments.
Here are the functions of pension fund administrators and pension fund custodians in Nigeria:
Pension Fund Administrators (PFA):
- Collect and manage pension contributions from employees and employers
- Invest pension funds in various financial instruments
- Provide regular reports to contributors on the status of their pension accounts
- Devising effective investment strategies to maximize returns
- Offer retirement planning and advisory services
- Disburse pension benefits to retirees
- Manage and invest pension funds on behalf of contributors
Pension Fund Custodians (PFC):
- Keep safe custody of pension assets on trust
- Receive pension contributions on behalf of PFAs
- Settle transactions and undertake activities relating to investment administration
- Notify the PFA of the receipt of pension contributions