Your contract is the main document — read it properly

By Equipo Saplic Published on 11/08/2026 Updated on 11/08/2026

Especially if you are outside the Labour Act, which most professionals are.

In this guide
  1. What the Act requires for covered workers
  2. Contract type affects your exit
  3. What to check before signing
  4. Collective bargaining
  5. Where disputes go
  6. Warning signs
  7. Keep records

Because so many Nigerian employees fall outside the Labour Act's definition of "worker", the written contract carries unusual weight.

What the Act requires for covered workers

Employers must give a written statement setting out the nature of the employment, the notice period, wage rates and how they are calculated, the manner and periodicity of payment, hours of work, holidays and holiday pay, sick leave provisions and maternity leave.

Contract type affects your exit

Whether your contract is fixed-term or indefinite affects both severance and notice periods. Check which one you signed.

What to check before signing

  1. The notice period — for both sides
  2. The basic-to-allowance split — it drives your pension
  3. Leave entitlement — since the statutory floor is only six days
  4. Termination and severance terms — for excluded categories, these come from contract alone
  5. Whether the Labour Act applies to your role

Collective bargaining

Collective bargaining agreements are common in unionised sectors, and where one applies it may give you considerably more than either the Act or your individual contract.

In early 2026, a new collective agreement between the Federal Government and ASUU replaced a framework that had been in place since 2009 — an example of how significant CBAs are in Nigerian labour relations.

Where disputes go

The National Industrial Court of Nigeria has exclusive jurisdiction over employment matters. It has developed a body of case law that extends well beyond the Labour Act.

Warning signs

Be cautious about paying for a job, for training or for equipment before being hired. And about arrangements where pension is deducted but not remitted.

Keep records

Your contract, payslips, PFA statements and any correspondence about leave or terms. In a dispute before the NICN, documentation is what decides.

Frequently asked questions

Why does my contract matter more in Nigeria?
Because most professional, managerial and technical staff fall outside the Labour Act, so the contract is the main source of their entitlements.
What must a written statement include?
The nature of employment, notice period, wage rates and calculation, manner and periodicity of payment, hours, holidays and holiday pay, sick leave and maternity provisions.
Does contract type affect my exit terms?
Yes. Whether the contract is fixed-term or indefinite affects both severance and notice periods.
Do collective agreements matter?
Very much in unionised sectors. Where a CBA applies it may give considerably more than either the Act or your individual contract.
Where are employment disputes heard?
The National Industrial Court of Nigeria has exclusive jurisdiction and has developed case law extending well beyond the Labour Act.

Sources

Put this into practice

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