⚖️ Termination of Employment in Nigeria: A Legal Overview
- Damilola Fadumila
- Jun 22
- 4 min read
By the Labour & Employment Law Team at O.I.D. Legal Consult📧 Email: oidlegalconsult@outlook.com📞 Tel/WhatsApp: +2348168868476
🧭 Introduction
Beyond the handshake that seals a job offer lies the legal event of employment termination—a critical juncture with far-reaching implications for both employer and employee. In Nigeria’s evolving labour landscape, the Labour Act provides a foundational framework to ensure employment contracts are ended lawfully, whether through resignation, dismissal, or redundancy.
Gone are the days of the simplistic “hire-and-fire” philosophy. Today, due process, fair hearing, and contractual obligations define the boundaries of lawful termination. This article unpacks the Nigerian legal regime governing termination of employment, highlighting voluntary exits, involuntary separations, summary dismissals, wrongful termination, and protection for pregnant employees.
1️⃣ What is Termination of Employment?
Termination of employment means legally ending the employer-employee relationship, whether voluntarily or involuntarily. This includes expiration of contracts, death of the employee, or termination via notice.
a. Expiration of Contract
When a contract runs its course and is not renewed, the employment ends automatically without either party needing to provide a reason.📖 See Section 9(7)(a), Labour Act
b. Death of the Employee
Employment contracts are personal and non-transferable. Upon death, the contract ends, although unpaid wages and benefits may be payable to the estate.📖 See Sections 9(7)(b) & 9(8), Labour Act
c. Termination by Notice
Either party may terminate employment by giving appropriate notice, as stipulated in the contract or as provided by the Labour Act.📖 See Section 11, Labour Act
2️⃣ Voluntary Termination
What Is It?
This occurs when an employee chooses to end the employment relationship, usually by resignation or retirement.
Legal Principles
Employees can resign at will.
Employers cannot reject a valid resignation.📖 See T.O.S. Benson v. Onitiri (1960)
Entitlements
No severance pay unless contractually agreed.
May be entitled to pension, unused leave, and other accrued benefits.
3️⃣ Involuntary Termination
3.1 Redundancy
Defined as involuntary, permanent loss of employment due to excess manpower.📖 Section 20(3), Labour Act
Severance Pay: Required under law.
Last-In, First-Out principle applies, subject to merit.📖 Section 20(1)(b), Labour Act
3.2 Summary Dismissal
Occurs when the employer terminates employment without notice due to gross misconduct.
Grounds for Summary Dismissal:
Theft, insubordination, fraud, negligence📖 Yusuf v. Union Bank (1996)
Requirements:
Fair hearing
Proper investigation
Impartial disciplinary procedure
Criminal accusations must be proved beyond reasonable doubt📖 See OMAPLEX 2024 Guide; FCCPC Principles
4️⃣ Wrongful Termination
Occurs when an employer terminates employment in breach of contract or statutory procedure.
Common Scenarios:
No notice or insufficient notice
Termination without cause where required
Breach of internal disciplinary procedure
Violation of public service rules (statutory employment)
Legal Remedies:
Damages (salary in lieu of notice or for unexpired term)
Reinstatement only available for statutory employment
📖 UBN v. Chinyere (2010); Labour Act Section 11
5️⃣ Termination and International Best Practices
With the 3rd alteration of the 1999 Constitution, the National Industrial Court can now apply international labour standards, even if not ratified by Nigeria.
Relevant Provisions:
ILO Convention 158 on termination
Recommendation 166 on due process📖 Section 254C(1)(f)(h), Constitution 1999 (as amended)📖 Afolayan Aderonke v. Skye Bank PLC (Unreported)
This significantly curtails arbitrary termination and empowers courts to require justification for dismissal in line with global best practices.
6️⃣ Special Termination Situations
6.1 Termination of Pregnant Employees
Pregnant women are protected under Section 54, Labour Act.
Maternity Leave: 6 weeks before and after EDD
Job Security: Cannot be terminated during maternity leave or for reasons tied to pregnancy
Medical Extension: Protected if backed by a doctor’s report
6.2 Employment with Statutory Flavour
Employees whose jobs are governed by statute (e.g., civil service) enjoy statutory protection.
Cannot be dismissed except in strict compliance with enabling laws
Termination contrary to statute is null and void
📖 See Alhassan v. ABU Zaria (2011)
7️⃣ Proactive Measures to Avoid Wrongful Termination Lawsuits
📖 See Ralph-Malix Legal Consult, 2024
🧾 Conclusion
The legal termination of employment in Nigeria is more than a managerial decision—it's a legal process governed by statute, contract, and judicial precedent. Employers must act with caution and comply with applicable laws to avoid liability for wrongful termination.
Employees, in turn, should understand their rights and remedies under Nigerian labour law, especially when facing involuntary exits.
At O.I.D. Legal Consult, we assist both employers and employees in navigating employment termination lawfully, ensuring compliance and protecting workplace rights.
📞 Need Advice or Representation?
📧 Email: oidlegalconsult@outlook.com📱 Tel/WhatsApp: +2348168868476
📚 References
Termination of Employment Without Cause or Reason in Nigeria, Folegal, 2024
Labour Act, Cap L1, Laws of the Federation of Nigeria 2004
T.O.S Benson v. Onitiri (1960) 5 FSC 61
Yusuf v. Union Bank of Nigeria (1996) 6 NWLR (Pt 457) 632 SC
UBN v. Chinyere (2010) 10 NWLR [Pt 1203] 453
Termination of Employment Convention, 1982 (No. 158), ILO
Alhassan v. ABU Zaria (2011) 11 NWLR [Pt 1259] 417
FCCPC v. Soko Lending (2022)
Ralph-Malix Legal Consult (2024)
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