Fight Against Unfair Labor Practices: House Of Reps Aims To Criminalize Salary Non-Payment

The bill, titled ‘The Employees Remuneration Protection Bill, 2023,’ was introduced by Wale Hammed, a representative of the Agege Federal Constituency in Lagos State…CONTINUE READING

Upon enactment, the bill empowers employees to request payment from their employers through a written claim, marking a significant shift in the employer-employee relationship.

Section 7 (1) of the bill deems it unlawful for any employer to “refuse or neglect to pay the remuneration of his employees, as provided under this Act.”

Section 8 (1) stipulates that if an employee’s compensation remains unpaid beyond the specified period permitted by the legislation, they can submit a written demand to their employer to assert their claim.

The bill outlines that if an employer fails to make payment within five business days after receiving a demand under Section 9, the employee can seek redress by petitioning the court through a motion on notice.

Employers failing to pay employee salaries could face imprisonment for three to six months, without the possibility of a fine.

Corporate entities ignoring court orders regarding employee remuneration risk a daily fine of N10,000 or being sealed off for up to three months, provided the default extends beyond two months.

Furthermore, the bill imposes a N10,000 penalty on any officer or agent authorizing or permitting noncompliance.

Employers must provide written terms of employment to returning employees within 14 working days, outlining comprehensive terms, conditions, remuneration, payment methods, employment character, and termination procedures.

Section 27 ensures that an employee’s court petition for remuneration payment will not lead to disciplinary action, inquiry, suspension, or termination by the employer.

Section 28 prioritizes the payment of outstanding remuneration to employees in the event of an employer’s bankruptcy.