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New Bill: Employers Owing Workers Salaries Face Six Months Jail Term

Published

12 months ago

Dec 31, 2023.

Eko Hot Blog reports that a bill has been introduced by the House of Representatives to make it a criminal offence for employers and corporate bodies which fail to pay salaries to their employees throughout the country.

The bill, titled “The Employees Remuneration Protection Bill, 2023,” was sponsored by a member representing the Agege Federal Constituency in Lagos State, Wale Hammed.

The bill is said to have passed its first reading, and, once enacted into law, employees will have the right to demand payment from their employers by submitting a written claim. Section 7 (1) of the bill makes it illegal for any employer to refuse or neglect to pay their employees’ remuneration as stipulated in the Act.

Tajudeen Abass – Speaker

Furthermore, Section 8 (1) of the bill states that if an employee’s compensation remains unpaid beyond the specified period allowed by this legislation, the employee can assert their claim by submitting a written demand to their employer for the payment of their entitlement.

“If an employee fails to remit payment within five business days following service of a demand under Section 9 of this bill, the employee may petition the court for redress by filing a motion on notice,” The PUNCH quoted a portion of the bill.

According to the legislation, employers who are found guilty of not paying their workers’ salaries may face imprisonment for a period of three to six months, with no option for a fine.

Likewise, if a corporate entity fails to comply with a court order regarding employee compensation, it may be subject to a daily fine of N10,000 or be temporarily closed for a maximum of three months, provided that the violation continues for more than two months.

IGP, Kayode Egbetokun

Furthermore, the bill also imposes a penalty of N10,000 on any officer or agent of the organization, government parastatal, agency, body, or institution who intentionally or knowingly allows or approves the noncompliance with the directive until it is rectified.

With this proposed legislation, employers are obligated to provide written terms of employment to resuming employees within 14 working days of the employee’s return to work for terms of employment exceeding one month.

The employment contract, which is binding on both the employer and the employee, shall comprehensively outline the terms and conditions, remuneration, and methods of payment, in addition to the character of the employment and the procedure for terminating it by either party.

Section 27 of the bill provides that an employee’s petition to the court for payment of remuneration shall not serve as grounds for “Disciplinary action, inquiry, suspension, or termination of the applicant by the employer.”

Meanwhile, Section 28 of the bill states that in the event of an employer’s bankruptcy, prioritisation shall be given to the payment of all outstanding remuneration to employees.

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