In a significant move, the House of Representatives has put forth a groundbreaking bill aimed at criminalizing the failure of employers across Nigeria to pay the salaries of their workers promptly.
The legislation, titled “The Employees Remuneration Protection Bill, 2023,” has successfully passed its initial reading and is sponsored by Wale Hammed, a representative from the Agege Federal Constituency in Lagos State.
Under the proposed legislation, employees will have the right to demand payment from their employers by submitting a written claim.
Section 7(1) of the bill expressly deems it unlawful for any employer to neglect or refuse to pay the remuneration of their employees as stipulated by the act.
Moreover, Section 8(1) outlines that if an employee’s compensation remains unpaid beyond the specified period permitted by the legislation, the employee can submit a written demand to their employer for the payment of their entitlement to assert their claim.
Failure to remit payment within five business days following such a demand empowers the employee to seek redress through the court under Section 9.
The bill introduces severe consequences for employers found guilty of failing to pay their workers’ salaries, including imprisonment ranging from three to six months, without the possibility of a fine.
Corporate entities failing to comply with court orders related to employee remuneration may face a daily fine of N10,000 or closure for a period not exceeding three months.
Additionally, the legislation imposes a N10,000 penalty on any officer or agent of an organization, government parastatal, agency, body, or institution that knowingly authorizes or permits default or noncompliance with the directive.
Furthermore, the bill places an obligation on employers to provide written terms of employment to returning employees within 14 working days, outlining comprehensive terms and conditions, remuneration, payment methods, employment character, and termination procedures.
Crucially, Section 27 of the bill ensures that an employee’s petition to the court for payment of remuneration will not be grounds for disciplinary action, inquiry, suspension, or termination by the employer.
In the unfortunate event of an employer’s bankruptcy, Section 28 prioritizes the payment of all outstanding remuneration to employees.
This legislative initiative aims to safeguard the rights and financial well-being of employees across the nation.
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