Legislators Push For Making Salary Nonpayment A Criminal Offense

Legislators Push For Making Salary Nonpayment A Criminal Offense

The House of Representatives is introducing a bill aimed at criminalizing the delay and non-payment of employee salaries by both individuals and corporate entities within the country. Sponsored by Wale Hammed, a member representing the Agege federal constituency of Lagos State, the proposed legislation is titled the Employees Remuneration Protection Bill, 2023….CONTINUE READING

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The bill, having successfully passed its first reading in Section 7 (1), asserts that it is illegal for any employer to willfully neglect or refuse to pay the remuneration specified under the Act. Section 8 (1) further outlines that if an employee’s remuneration remains unpaid beyond the stipulated timeframe, the employee may submit a written demand to the employer for payment of the entitled sum.

In the event that the employee remains unpaid after five working days following the demand, Section 9 allows the employee to seek redress through the court by filing a motion on notice. The proposed legislation, if enacted, imposes a jail term ranging from three to six months, without the option of a fine, for individual employers found guilty of non-payment of employee salaries.

For corporate bodies failing to adhere to a court order for salary payment, the bill proposes a fine of N10,000 for each day of default. Additionally, such entities may face closure for a period not exceeding three months if the default persists beyond two months. Alternatively, the bill suggests imposing a fine of N10,000 on every officer or agent of the company, government parastatal, agency, body, or institution authorizing or permitting the default until compliance is achieved.

The bill mandates employers to provide written terms of employment within 14 working days of an employee’s commencement, for engagements lasting more than one month. The employment contract, signed by both parties, is required to delineate the nature of employment, termination procedures, remuneration, payment methods, and terms and conditions.

Section 27 of the proposed legislation safeguards employees from facing disciplinary actions, queries, suspension, or dismissal solely based on their application to the court for remuneration. Furthermore, Section 28 prioritizes the payment of outstanding remuneration to employees in the event of an employer’s bankruptcy.

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