FORMATION OF CONTRACT OF EMPLOYMENT IN NIGERIA AND ITS EFFECT
A contract of employment is governed in Nigeria by the common law rule of contract. Employment contract like any other contract, has its peculiar ways by which such a relationship could be established.
FORMATION OF CONTRACT OF EMPLOYMENT IN NIGERIA AND ITS EFFECT
A contract of employment is governed in Nigeria by the common law rule of contract. Employment contract like any other contract, has its peculiar ways by which such a relationship could be established.
FORMATION OF CONTRACT OF EMPLOYMENT
A legally binding contract must include five components. The Court of Appeal held that a contract must contain five elements in ORIENT BANK V. BILANTE INTERNATIONAL LTD (1997) 8 NWLR 515. They are an offer, an acceptance, a thought, and an intent to create.
However, there is distinction between contract of employment and contract for service. The contract of employment empowers the employer to control the work of the employee whereas, in a contract for service, the principal is limited in the way and manner he directs the work done by the independent contractor.
The terms of contract of employment are based on the general law of contract. It is an agreement between the employer and the worker with the only requirement that such terms are subject to whatever changes made by regulatory status such as Labour Law, and Industrial Act.
In Contract of employment, the employee consents to work for the master and to be under his or her direction for a certain period of time or an unlimited amount of time in exchange for a benefit. In NIGERIA AIRWAYS V. GBAJUMO (1992) 5NWLR 2164 at 735, the Lagos Division of the Court of Appeal found that the master-servant relationship is characterised by the following:
A contract of service made under seal, oral or inferred from the conduct of the parties. Payment of wages and salaries.
CONTENTS OF THE EMPLOYMENT CONTRACT
The minimal requirements set forth in the labour laws must appear in a typical employment contract. It often stipulates that any contract lasting six months or more must be reduced to writing, as well as the determination of the hours of work and the number of leave days to which an employee is entitled.
The law also specifies the frequency with which wages are paid, the maximum amount that can be deducted from a worker's salary, redundancy, and rules for benefit negotiations when workers must be laid off due to redundancy. There are other laws, in addition to the labour act, that provide extensive provisions for workers' safety at work. They consist of the following laws:
Factories Act Cap 125 LFN 1990.
Workmen’s Compensation Act, Cap. 470 LFN 1990.
Petroleum Act Cap 350 LFN 1990.
Federal Environmental Protection Agency Cap 131 LFN 1990.
EFFECTS OF EMPLOYMENT CONTRACT
The resultant effect of a contract of service is that the employee is bound by the terms and conditions of his service beginning on the date of the contract's initiation, which is typically specifically specified in the letters of appointment issued to him. This makes him subject to the employer's whims and caprices, provided that the employer's exercise of control does not violate any existing laws and that the commands and directives are legitimate.
The details of an employment contract, which serve as the foundation for the parties' rights, obligations, and duties, typically vary from one organisation to another. But generally speaking, there are several components that are present in the majority of employment categories. Among them are:
PAYMENT OF WAGES
One of the main implications of an employment contract is the imposition of a responsibility on the employer to pay wages, which is typically accomplished in the form of compensation.
The provisions of Sections 1(1) through (3) of the Labor Act appropriately cover concerns relating to the employee's basic salary. Housing, housing allowance, leave allowance, end-of-year bonus, overtime, and sick pay are also included. The law imposes a responsibility on the employer to make sure that these matters are effectively addressed, which suggests that the employer is responsible for the employee's welfare as of the date the employment contract began.
AREA OF SERVICES
The scope of the employer's task is frequently specified in the contractor's letter of employment. Since the employee agreed to work for his employers in any region of the nation where they operate, refusing a reasonable request for a transfer to another area will amount to a breach of contract and be grounds for dismissal.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com
WRITTEN BY CHAMAN LAW FIRM TEAM
EMAIL: chamanlawfirm@gmail.com
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