Reps propose jail term for employers owing salary

Therefore, “if an employee fails to remit payment within five business days following service of a demand under Section 9 of this bill, the employee may petition the court for redress by filing a motion on notice.”

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As per the bill, employers failing to pay their workers’ salaries could face imprisonment for three to six months, without the option of a fine.

Likewise, a company that disregards a court order related to employee compensation may incur a daily fine of N10,000 or face closure for a maximum of three months, provided the default persists beyond two months.

Moreover, the bill stipulates a N10,000 penalty for any official or representative of an organization, government agency, or institution who knowingly allows noncompliance until the directive is adhered to.

Under this proposed legislation, employers must furnish returning employees with written employment terms within 14 working days for contracts extending beyond a month. These contracts, binding for both parties, should comprehensively cover terms, remuneration, payment methods, employment nature, and termination procedures.

Section 27 of the bill provides that an employee’s petition to the court for payment of remuneration shall not serve as grounds for “Disciplinary action, inquiry, suspension, or termination of the applicant by the employer.”

Meanwhile, Section 28 of the bill states that in the event of an employer’s bankruptcy, prioritisation shall be given to the payment of all outstanding remuneration to employees.

Reps propose jail term for employers owing salary