In a significant legislative move, the House of Representatives in Nigeria has introduced the Employees Remuneration Protection Bill, 2023, aimed at curbing the practice of delayed or withheld salary payments by employers.
The bill, sponsored by Wale Hammed, a House member representing the Agege federal constituency in Lagos State, has successfully passed its first reading, bringing attention to the need for robust protection of employees’ financial rights.
Key Provisions of the Employees Remuneration Protection Bill:
1. Unlawful Salary Delays: Section 7 (1) of the bill categorically states that it is illegal for any employer to refuse or neglect to pay the remuneration of their employees, as outlined in the legislation.
2. Employee Rights: Section 8 (1) empowers employees to submit a written demand for payment if their compensation remains unpaid beyond the specified period allowed by the law.
3. Legal Recourse: If an employer fails to remit payment within five business days following a demand, the employee is granted the right to petition the court for redress through a motion on notice.
4. Penalties for Employers: The bill proposes a jail term of three to six months, without the possibility of a fine, for employers found guilty of failing to pay their workers’ salaries.
5. Corporate Entities: Corporate entities failing to adhere to a court order regarding employee remuneration may face a fine of N10,000 per day of default or be sealed off for a period not exceeding three months, should the default extend beyond two months.
6. Penalties for Officers or Agents: Officers or agents authorizing or permitting the default or noncompliance may be fined N10,000 until compliance is achieved.
7. Written Terms of Employment: Employers are mandated to provide written terms of employment within fourteen working days of an employee’s return to work for terms exceeding one month.
8. Protection from Retaliation: Section 27 ensures that an employee’s petition to the court for payment of remuneration shall not lead to disciplinary action, inquiry, suspension, or termination.
9. Bankruptcy Prioritization: In cases of employer bankruptcy, Section 28 prioritizes the payment of all outstanding remuneration to employees.
This legislative effort echoes a previous bill proposed by Femi Gbajabiamila, now the Chief of Staff to the President, during his tenure as Speaker of the House of Representatives. The current bill aligns with the commitment to address late or unpaid wages and prescribes penalties for violations, emphasizing the protection of workers’ financial rights in Nigeria. The proposed legislation underscores the importance of timely salary disbursement, aiming to foster fair and ethical employment practices across the country.
