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Employment & Labour
Three documents usually govern a working relationship: the written contract, the Labour Act where it applies, and the employer's policies. Knowing which answers which question prevents most workplace disputes.
Labour Act, Cap L1 LFN 2004
Our explanation, written for a general reader. It is not the text of the law.
The Labour Act is directed principally at workers engaged in manual labour or clerical work. Employees outside that description are largely governed by their contract, by any applicable sectoral rules, and by the decisions of the National Industrial Court. This is why two people in the same office can have quite different legal positions.
Whatever the category, the contract is the centre of gravity. It should record the parties, the role, remuneration, working hours, leave, notice and the grounds on which the relationship can end. Where the contract is silent, the surrounding law and practice fill the gap — and that is where disputes begin.
Termination and dismissal are not the same conversation. Termination follows the contract's own notice machinery; dismissal for misconduct raises questions of process and fairness, and the National Industrial Court has developed the standards that apply. Getting the process right matters as much as having a reason.
Where the official text lives, beside what it means in ordinary language.
Official text
Written statement of terms
Labour Act, Cap L1 LFN 2004 — contract of employment
Plain language — our explanation
The Act requires that a worker be given a written statement of the particulars of their employment within the period it specifies.
Official text
Notice on termination
Labour Act, Cap L1 LFN 2004 — termination provisions
Plain language — our explanation
The Act sets minimum notice periods that scale with length of service, and contemplates payment in lieu of notice.
Official text
Wages
Labour Act, Cap L1 LFN 2004 — payment of wages
Plain language — our explanation
Wages are to be paid in legal tender, and the Act restricts the deductions an employer may make.
Official text
Where disputes are heard
Constitution 1999 (as amended), s. 254C — National Industrial Court jurisdiction
Plain language — our explanation
Employment and labour disputes fall within the jurisdiction of the National Industrial Court, which is why its decisions shape this area so strongly.
In real life
An employee is told not to return, with no letter and no notice.
The first questions are what the contract says about notice, what actually happened, and whether the ending is characterised as termination or dismissal.
In real life
A company deducts the cost of damaged equipment from a salary without agreement.
Restrictions on deductions and the terms of the contract both come into play before anything is taken from a wage.
What you should do
What you should not do
“A probation period means no rights at all.”
The contract still governs the relationship during probation, including whatever notice it provides for.
“An employer can dismiss for misconduct without any process.”
Where misconduct is alleged, the fairness of the process is itself part of the question the National Industrial Court examines.
What this instrument was, what changed, and what is in force now. Superseded versions are kept on the record rather than deleted.
What changed
Reading the Labour Act alone gives an incomplete picture of what an employer can and cannot do today.
What changed
What changed
When to speak to a lawyer