Bold Move: Nigerian Reps Float Jail Term Proposal for Employers With Unpaid Salaries

Infostride News has reported on a significant development in the legislative landscape, as the House of Representatives unveils a groundbreaking proposal aimed at safeguarding the financial interests of employees across the nation. This pioneering initiative, known as the Employees Remuneration Protection Bill, 2023, is championed by Wale Hammed, a distinguished member of the House representing the Agege federal constituency in Lagos State.

The essence of this proposed legislation revolves around making it unlawful for employers or corporate entities to either delay or neglect the payment of their employees’ salaries. A careful examination of the bill reveals its comprehensive provisions designed to protect the rights of workers and ensure the timely disbursement of their remuneration.

According to Section 7(1) of the Bill, employers are expressly prohibited from refusing or neglecting to pay the remuneration of their employees, as stipulated by the provisions of the Act. Furthermore, Section 8(1) establishes a framework for recourse in the event of delayed compensation. If an employee’s remuneration remains unpaid beyond the specified period permitted by the legislation, the affected employee is empowered to submit a written demand to their employer, asserting their rightful claim.

In instances where an employer fails to remit payment within five business days following the service of a demand under Section 9 of the bill, the aggrieved employee is granted the authority to seek redress by petitioning the court. The proposed legislation takes a stern stance on non-compliance, imposing a jail term of three to six months, without the possibility of a fine, on employers found guilty of failing to pay their employees’ salaries.

Corporate entities are not exempt from the strict provisions of the proposed bill. In cases where a corporate entity disregards a court order concerning the remuneration of its employees, it will face a fine of N10,000 per day of default or potential closure for a period not exceeding three months, provided that the default persists beyond two months. Alternatively, officers or agents of the organization who authorize or permit the default may be subject to a penalty of N10,000 until compliance is achieved.

The legislation further imposes an obligation on employers to furnish resuming employees with written terms of employment within fourteen working days of their return, especially when the terms of employment extend beyond one month. This employment contract, to be executed by both the employer and employee, is mandated to comprehensively outline the terms and conditions of employment, remuneration, methods of payment, as well as the nature of employment and the termination procedure by either party.

Importantly, the proposed legislation, as outlined in Section 27, protects employees from any form of retaliation. An employee’s petition to the court for the payment of remuneration shall not serve as grounds for disciplinary action, inquiry, suspension, or termination by the employer. Section 28 emphasizes the priority given to the payment of outstanding remuneration to employees in the event of an employer’s bankruptcy.

A historical perspective reveals that a similar bill was previously proposed by the current Chief of Staff to the President, Femi Gbajabiamila, during his tenure as the Speaker of the House of Representatives. The ‘Employees/Workman (Unpaid Wages Prohibition) Bill 2016′ was introduced with the primary objective of prohibiting late payment, non-payment, and underpayment of workers’ wages in Nigeria. Despite passing the first reading in July 2019, the bill was recalled for reconsideration by the 9th Assembly.

In the explanatory note accompanying the earlier proposal, Gbajabiamila emphasized the bill’s overarching goal to address the prevalent issues of late payment, non-payment, and underpayment of workers’ wages in Nigeria. The proposed legislation sought to prescribe penalties for violations and establish a robust framework for the protection of workers’ rights.

The current initiative, spearheaded by Wale Hammed, appears to align with the broader objectives outlined in the earlier proposal. The comprehensive provisions of the Employees Remuneration Protection Bill, 2023, underscore a collective commitment to addressing the systemic challenges faced by workers in Nigeria regarding timely and fair remuneration.

As this legislative proposal progresses through subsequent readings and stages, it holds the potential to reshape the employment landscape in Nigeria, providing a legal framework that ensures the prompt payment of salaries and protects the rights of workers. The implications of such a groundbreaking piece of legislation extend beyond the immediate legal ramifications, signaling a commitment to fostering a fair and just work environment for employees across the nation. Infostride News will continue to monitor and report on the developments surrounding this significant legislative endeavor.