The House of Representatives is introducing a bill aimed at making it illegal for employers of labour and corporate entities nationwide to fail to pay or withhold salaries.
Once the bill becomes law, workers will have the right to request payment by submitting a written claim if their employer fails to pay them.
The proposed legislation, titled “The Employees Remuneration Protection Bill, 2023,” sponsored by Wale Hammed, a representative from the Agege Federal Constituency in Lagos State, has successfully passed its initial reading.
Section 7 (1) of the bill explicitly prohibits employers from refusing or neglecting to pay their employees as stipulated under the Act.
Moreover, Section 8 (1) empowers employees to demand their unpaid compensation by submitting a written request to their employer if their entitlement remains unpaid beyond the specified period outlined in the legislation.
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.”
As per the proposed bill, employers who are found guilty of failing to pay their workers’ salaries could face imprisonment ranging from three to six months, with no option of a fine.
Likewise, a corporate entity failing to comply with a court order concerning employee remuneration could either incur a daily fine of N10,000 or face closure for a maximum period of three months, specifically if the default persists beyond two months.
Moreover, the bill imposes a N10,000 penalty on any official or representative of an organization, government agency, parastatal, body, or institution who knowingly permits or sanctions noncompliance until rectification occurs.
Under this proposed legislation, employers are mandated to furnish returning employees with written employment terms within 14 working days if the employment extends beyond one month.
These employment terms, binding for both employer and employee, should comprehensively detail conditions, compensation, payment methods, employment nature, and termination procedures for either party.
Section 27 of the bill safeguards employees, stipulating that seeking remuneration through court petition won’t justify disciplinary measures, inquiry, suspension, or termination by the employer.
Simultaneously, Section 28 emphasizes that in case of employer bankruptcy, clearing all outstanding remuneration owed to employees will be prioritized.
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