Termination of employment is one of the most consequential decisions an employer can make. In Nigeria, wrongful dismissal suits have increased significantly in recent years, largely due to procedural gaps in how employers handle the process. HR professionals must understand the law — not as optional knowledge, but as a baseline competency.
Termination vs. Dismissal
Nigerian law draws a clear distinction. Termination ends the employment relationship without attributing fault. Dismissal is punitive and follows proven misconduct. Confusing the two can expose an organisation to significant liability at the National Industrial Court of Nigeria (NICN).
Minimum Notice Periods Under Section 11 of the Labour Act
- One day for contracts under three months
- One week for contracts of three months to two years
- Two weeks for two to five years
- One month for contracts over five years
An employer may pay salary in lieu of notice — but it must equal what the employee would have earned during that period. Anything less is a breach of contract.
What the NICN Can Do
Where wrongful termination is proven, the NICN — which has exclusive jurisdiction over labour matters — may award damages, order payment of outstanding entitlements, or in exceptional cases reinstate the employee, particularly where employment has statutory protection.
Common Employer Mistakes
1. No notice or payment in lieu. Simply asking an employee to leave without proper process is a direct Labour Act violation.
2. No documented process. Missing warnings, verbal terminations, and absent performance records leave employers with no legal defence.
3. No fair hearing before dismissal. For misconduct cases, the employee must have the opportunity to respond before any dismissal decision is made.
4. Withholding final entitlements. Outstanding salary, accrued leave, and contractual benefits must be settled at the point of separation.
Best Practice
A lawful termination process requires a documented paper trail, proper notice or payment in lieu, settlement of all outstanding entitlements, a formal separation letter, and — for misconduct — a show-cause notice and fair hearing. HR professionals who build these processes correctly protect both employee rights and organisational legal standing.