Employment contracts Nigeria

What should an employment contract in Nigeria include?

An employment contract in Nigeria should include the following information:

• The names and contact information of both the employer and employee.
• The job title and duties of the employee.
• Designated work schedule and days of operation for the employee.
• The mutually established pay or earnings, inclusive of extra benefits or rewards.
• Provisions for contract termination, encompassing notice duration from either party.
• Mutually consented upon clauses pertaining to confidentiality and non-disclosure.

Both the employer and employee should carefully review the terms of the employment agreement before affixing their signatures.

What types of employment contracts exist in Nigeria?

Employment contracts in Nigeria can be divided into several categories:

1. Employee contract

The employee contract in Nigeria can be further divided into two groups of contracts:

• Indefinite-term contracts: it’s also known as an open-ended contract that does not have a predetermined end date. Instead, it continues until the employer or the employee decides to terminate the contract, usually by giving the required notice as specified in the employment laws or the contract itself.
• Definite-term contracts: This contract is for a specific duration or project. It automatically terminates at the end of the agreed-upon period or upon task completion. It is commonly used for temporary or project-based work.

Consulting or Independent Contractor Agreement

This type of agreement is used for individuals who provide services as independent contractors rather than being employed by the company. It defines the scope of work, payment terms, and other relevant details.

Probationary Employment Contract 

This contract is often used for new employees to assess their suitability for a permanent role. It usually has a shorter duration during which the employer evaluates the employee’s performance and fit within the organisation.

How to hire employees in Nigeria? 

To hire new workers in Nigeria, it is essential to have a formally registered entity. This involves enrolling your business with the appropriate Nigerian authorities and securing an official business registration identifier. It is of utmost importance to follow the employment regulations in Nigeria, which cover aspects such as employment agreements, minimum compensation, work hours, and employee privileges.

Another alternative is to use the services of a global recruitment solutions provider, like Native Teams. Moreover, Native Teams presents an Employer of Record solution that manages diverse responsibilities, including payroll, human resources, and tax arrangements. We can offer assistance in scenarios where sourcing trustworthy and current job-related details for multiple countries poses a challenge.