In a significant move to protect the rights of employees, the House of Representatives is advancing a groundbreaking bill titled the “Employees Remuneration Protection Bill, 2023.” Sponsored by Wale Hammed, a representative from Lagos State’s Agege federal constituency, the bill aims to criminalize the delay and non-payment of salaries by both individuals and corporate entities across Nigeria.
The proposed legislation, after passing its first reading, contains stringent provisions to ensure timely remuneration for workers. Section 7(1) explicitly declares it unlawful for any employer to neglect or refuse to pay employees their rightful remuneration as stipulated by the act.
Section 8(1) outlines the procedure for employees seeking unpaid remuneration, emphasizing the submission of a written demand to the employer. House of Representatives in the event that an employer fails to comply after five working days, the employee is empowered to seek redress through the court.
One of the most notable aspects of the bill is its imposition of penalties on defaulting employers. Individual employers convicted for non-payment of salaries may face a jail term ranging from three to six months, without the option of a fine. For corporate entities, failure to comply with court orders may result in a fine of N10,000 per day of default and, in extreme cases, closure for a period not exceeding three months.
Alternatively, the legislation holds officers or agents of non-compliant entities personally responsible, subjecting them to a fine of N10,000 until the court’s order is adhered to.
The bill also addresses employment practices, mandating employers to provide written terms of employment within 14 working days of an employee’s resumption, detailing crucial aspects such as the nature of employment, termination methods, remuneration, payment methods, and terms and conditions.
Importantly, Sections 27 and 28 safeguard employees from retaliatory actions by employers in the event of legal action or bankruptcy. Section 27 explicitly states that seeking legal remedies for unpaid remuneration should not lead to disciplinary actions or dismissal, while Section 28 prioritizes the payment of outstanding remuneration in the case of employer bankruptcy.
The proposed legislation represents a significant step toward protecting the rights of employees, ensuring timely payment of salaries, and holding employers accountable for non-compliance. If enacted, it could usher in a new era of employee rights and fair labor practices in Nigeria.
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