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Page 1: Law Review - Perchstone and Graeys · INTERNATIONAL TAXATION REVIEW ... Bertha Xiomara Ortega Castillo ... It is hard to believe that we are now on our sixth edition of The Employment

The Employment Law ReviewThe Employment Law Review

Law Business Research

Sixth Edition

Editor

Erika C Collins

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The Employment Law Review

The Employment Law ReviewReproduced with permission from Law Business Research Ltd.

This article was first published in The Employment Law Review - Edition 6(published in February 2015 – editor Erika C Collins).

For further information please [email protected]

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The Employment Law Review

Sixth Edition

EditorErika C Collins

Law Business Research Ltd

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THE MERGERS AND ACQUISITIONS REVIEW

THE RESTRUCTURING REVIEW

THE PRIVATE COMPETITION ENFORCEMENT REVIEW

THE DISPUTE RESOLUTION REVIEW

THE EMPLOYMENT LAW REVIEW

THE PUBLIC COMPETITION ENFORCEMENT REVIEW

THE BANKING REGULATION REVIEW

THE INTERNATIONAL ARBITRATION REVIEW

THE MERGER CONTROL REVIEW

THE TECHNOLOGY, MEDIA AND TELECOMMUNICATIONS REVIEW

THE INWARD INVESTMENT AND INTERNATIONAL TAXATION REVIEW

THE CORPORATE GOVERNANCE REVIEW

THE CORPORATE IMMIGRATION REVIEW

THE INTERNATIONAL INVESTIGATIONS REVIEW

THE PROJECTS AND CONSTRUCTION REVIEW

THE INTERNATIONAL CAPITAL MARKETS REVIEW

THE REAL ESTATE LAW REVIEW

THE PRIVATE EQUITY REVIEW

THE ENERGY REGULATION AND MARKETS REVIEW

THE INTELLECTUAL PROPERTY REVIEW

THE ASSET MANAGEMENT REVIEW

THE LAW REVIEWS

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www.TheLawReviews.co.uk

THE PRIVATE WEALTH AND PRIVATE CLIENT REVIEW

THE MINING LAW REVIEW

THE EXECUTIVE REMUNERATION REVIEW

THE ANTI-BRIBERY AND ANTI-CORRUPTION REVIEW

THE CARTELS AND LENIENCY REVIEW

THE TAX DISPUTES AND LITIGATION REVIEW

THE LIFE SCIENCES LAW REVIEW

THE INSURANCE AND REINSURANCE LAW REVIEW

THE GOVERNMENT PROCUREMENT REVIEW

THE DOMINANCE AND MONOPOLIES REVIEW

THE AVIATION LAW REVIEW

THE FOREIGN INVESTMENT REGULATION REVIEW

THE ASSET TRACING AND RECOVERY REVIEW

THE INTERNATIONAL INSOLVENCY REVIEW

THE OIL AND GAS LAW REVIEW

THE FRANCHISE LAW REVIEW

THE PRODUCT REGULATION AND LIABILITY REVIEW

THE SHIPPING LAW REVIEW

THE ACQUISITION AND LEVERAGED FINANCE REVIEW

THE PRIVACY, DATA PROTECTION AND CYBERSECURITY LAW REVIEW

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PUBLISHER Gideon Roberton

BUSINESS DEVELOPMENT MANAGER Nick Barette

SENIOR ACCOUNT MANAGERS Katherine Jablonowska, Thomas Lee

ACCOUNT MANAGER Felicity Bown

PUBLISHING COORDINATOR Lucy Brewer

MARKETING ASSISTANT Dominique Destrée

EDITORIAL ASSISTANT Shani Bans

HEAD OF PRODUCTION Adam Myers

PRODUCTION EDITOR Timothy Beaver

SUBEDITOR Anna Andreoli

MANAGING DIRECTOR Richard Davey

Published in the United Kingdom by Law Business Research Ltd, London

87 Lancaster Road, London, W11 1QQ, UK© 2015 Law Business Research Ltd

www.TheLawReviews.co.uk No photocopying: copyright licences do not apply.

The information provided in this publication is general and may not apply in a specific situation, nor does it necessarily represent the views of authors’ firms or their clients.

Legal advice should always be sought before taking any legal action based on the information provided. The publishers accept no responsibility for any acts or omissions contained herein. Although the information provided is accurate as of February 2015,

be advised that this is a developing area.Enquiries concerning reproduction should be sent to Law Business Research, at the

address above. Enquiries concerning editorial content should be directed to the Publisher – [email protected]

ISBN 978-1-909830-36-3

Printed in Great Britain by Encompass Print Solutions, Derbyshire

Tel: 0844 2480 112

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i

The publisher acknowledges and thanks the following law firms for their learned assistance throughout the preparation of this book:

ACKNOWLEDGEMENTS

ALI BUDIARDJO, NUGROHO, REKSODIPUTRO

ALRUD LAW FIRM

ARIAS, FÁBREGA & FÁBREGA

ATTORNEYS AT LAW BORENIUS

BAYKANIDEA LAW OFFICES

BOEKEL DE NERÉE

CASTEGNARO

CONSORTIUM RODRÍGUEZ, ARCHILA, CASTELLANOS, SOLARES & AGUILAR, SC

CONSORTIUM TABOADA & ASSOCIATES

DAI-ICHI FUYO LAW OFFICE

DELOITTE ADVOKATFIRMA AS

DENTONS

ENSAFRICA

ESTUDIO GRAU ABOGADOS

FERRAIUOLI LLC

GEORGE Z GEORGIOU & ASSOCIATES LLC

GIANNI, ORIGONI, GRIPPO, CAPPELLI & PARTNERS

GONZALEZ CALVILLO, SC

HAMILTON ADVOKATBYRÅ KB

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Acknowledgements

ii

HERBERT SMITH FREEHILLS

KIRK LARSEN & ASCANIUS

KOCHHAR & CO

KYRIAKIDES GEORGOPOULOS LAW FIRM

LAW FIRM ŠAFAR & PARTNERS, LTD

MATHESON

MATTOS FILHO, VEIGA FILHO, MARREY JR E QUIROGA ADVOGADOS

PERCHSTONE & GRAEYS

PROSKAUER ROSE LLP

SAGARDOY ABOGADOS

SAYENKO KHARENKO

SÉRVULO & ASSOCIADOS – SOCIEDADE DE ADVOGADOS, RL

SHERRARD KUZZ LLP

SIGUION REYNA, MONTECILLO & ONGSIAKO LAW OFFICE

SKRINE

SOŁTYSIŃSKI KAWECKI & SZLĘZAK

SBM LEGAL

TILLEKE & GIBBINS

TRIAY & TRIAY

URENDA, RENCORET, ORREGO Y DÖRR

VAN OLMEN & WYNANT

VANGARD

WALDER WYSS LTD

YOON & YANG LLC

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Editor’s Preface ...................................................................................................ixErika C Collins

Chapter 1 EMPLOYMENT ISSUES IN CROSS-BORDER M&A TRANSACTIONS ............................................................1Erika C Collins and Michelle A Gyves

Chapter 2 GLOBAL DIVERSITY AND INTERNATIONAL EMPLOYMENT .........................................................................9Erika C Collins

Chapter 3 SOCIAL MEDIA AND INTERNATIONAL EMPLOYMENT .......................................................................17Erika C Collins and Jon L Dueltgen

Chapter 4 AUSTRALIA .............................................................................26Miles Bastick, Shivchand Jhinku and Kelly Xiao

Chapter 5 BELGIUM ................................................................................43Chris Van Olmen

Chapter 6 BRAZIL.....................................................................................59Vilma Toshie Kutomi

Chapter 7 CANADA ..................................................................................82Erin R Kuzz and Leah Simon

Chapter 8 CHILE ......................................................................................99Sebastián Merino von Bernath and Roberto Lewin V

Chapter 9 CHINA ...................................................................................114Erika C Collins and Ying Li

CONTENTS

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Contents

Chapter 10 CYPRUS .................................................................................133George Z Georgiou, Anna Praxitelous and Natasa Aplikiotou

Chapter 11 DENMARK ............................................................................149Tommy Angermair

Chapter 12 FRANCE .................................................................................165Yasmine Tarasewicz and Paul Romatet

Chapter 13 GERMANY .............................................................................181Thomas Griebe and Jan-Ove Becker

Chapter 14 GIBRALTAR ...........................................................................202Alan Buchanan and Joseph Gomez

Chapter 15 GREECE .................................................................................216Effie G Mitsopoulou and Ioanna C Kyriazi

Chapter 16 GUATEMALA ........................................................................233Lionel Francisco Aguilar Salguero

Chapter 17 HONG KONG .......................................................................240Jeremy Leifer

Chapter 18 INDIA .....................................................................................252Manishi Pathak

Chapter 19 INDONESIA ..........................................................................270Nafis Adwani and Indra Setiawan

Chapter 20 IRELAND ...............................................................................286Bryan Dunne and Bláthnaid Evans

Chapter 21 ITALY ......................................................................................306Raffaella Betti Berutto

Chapter 22 JAPAN .....................................................................................320Shione Kinoshita, Shiho Azuma, Yuki Minato, Hideaki Saito, Ryo Miyashita, Keisuke Tomida and Tomoaki Ikeda

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Contents

Chapter 23 KOREA ...................................................................................333Kwon Hoe Kim, Don K Mun and Young Min Kim

Chapter 24 LATVIA ..................................................................................346Ivo Maskalans

Chapter 25 LUXEMBOURG ....................................................................362Guy Castegnaro, Ariane Claverie, Céline Defay, Christophe Domingos, Laurence Chatenier and Lorraine Chéry

Chapter 26 MALAYSIA .............................................................................385Siva Kumar Kanagasabai and Selvamalar Alagaratnam

Chapter 27 MEXICO ................................................................................405Miguel Valle, Jorge Mondragón and Rafael Vallejo

Chapter 28 NETHERLANDS ...................................................................424Eugenie Nunes and Afra Pepping

Chapter 29 NEW ZEALAND ...................................................................448Bridget Smith and Tim Oldfield

Chapter 30 NICARAGUA .........................................................................461Bertha Xiomara Ortega Castillo

Chapter 31 NIGERIA ................................................................................471Olawale Adebambo, Folabi Kuti and Ifedayo Iroche

Chapter 32 NORWAY ...............................................................................488Gro Forsdal Helvik

Chapter 33 PANAMA ................................................................................500Vivian Holness

Chapter 34 PERU ......................................................................................512José Burgos C

Chapter 35 PHILIPPINES .........................................................................526Rolando Mario G Villonco, Rafael H E Khan and Carmina Marie R Panlilio

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Chapter 36 POLAND ................................................................................540Roch Pałubicki and Karolina Nowotna

Chapter 37 PORTUGAL ...........................................................................555Magda Sousa Gomes

Chapter 38 PUERTO RICO ......................................................................572Katherine González-Valentín, María Judith (Nani) Marchand-Sánchez, Rafael I Rodríguez-Nevares, Luis O Rodríguez-López and Tatiana Leal-González

Chapter 39 RUSSIA ...................................................................................586Irina Anyukhina

Chapter 40 SAUDI ARABIA .....................................................................608Amgad T Husein, John M B Balouziyeh and Jonathan G Burns

Chapter 41 SLOVENIA .............................................................................623Vesna Šafar and Martin Šafar

Chapter 42 SOUTH AFRICA ...................................................................641Stuart Harrison, Brian Patterson and Zahida Ebrahim

Chapter 43 SPAIN .....................................................................................658Iñigo Sagardoy de Simón and Gisella Alvarado Caycho

Chapter 44 SWEDEN ...............................................................................677Erik Danhard

Chapter 45 SWITZERLAND ....................................................................690Ueli Sommer

Chapter 46 TURKEY .................................................................................705Serbülent Baykan and Hande Erdoğan

Chapter 47 UKRAINE ...............................................................................719Svitlana Kheda

Chapter 48 UNITED ARAB EMIRATES..................................................733Ibrahim Elsadig

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Chapter 49 UNITED KINGDOM ...........................................................743Daniel Ornstein and Peta-Anne Barrow

Chapter 50 UNITED STATES ..................................................................757Allan S Bloom and Carolyn M Dellatore

Chapter 51 VIETNAM ..............................................................................771Michael K Lee, Annika Svanberg and Doan Ngoc Tran

Appendix 1 ABOUT THE AUTHORS .....................................................785

Appendix 2 CONTRIBUTING LAW FIRMS' CONTACT DETAILS .....819

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EDITOR’S PREFACE

It is hard to believe that we are now on our sixth edition of The Employment Law Review. When we published the first edition of this book six years ago, I noted my belief that a book of this sort was long overdue given the importance to multinational corporations of understanding and complying with the laws of the various jurisdictions in which they operate. It has given me great pleasure to see the past editions of this book used over the last several years for just this purpose – as a tool to aid practitioners and human resources professionals in identifying issues that may present challenges to their clients and companies. The various editions of this book have highlighted changes in the laws of many jurisdictions over the past few years, making even clearer the need for a consolidated and up-to-date reference guide of this sort.

Global diversity and inclusion initiatives remained a hot topic in 2014. Many companies have unrolled initiatives regarding ‘unconscious’ bias, which is addressed in the first general interest chapter on global diversity. Looking abroad, recent legal developments regarding gender and transgender recognition will affect multinational corporations both in terms of law and policy, as underscored by recent legal developments out of India.

Our second general interest chapter tracks another active year of mergers and acquisitions after a brief decline following the financial crisis. This chapter, which addresses employment issues in cross-border corporate transactions, along with the relevant country-specific chapters, will aid practitioners and human resources professionals in conducting due diligence and providing other employment-related support in connection with cross-border M&A deals.

The third general interest chapter covers the increasing trend of clients considering or revising company’s social media and mobile device management policies. In particular, there is an increase in the number of organisations that are moving toward ‘bring your own device’ programmes and this chapter addresses issues for consideration by multinational employers in rolling out policies of this sort. ‘Bring your own device’ issues remain a topic of concern because more and more jurisdictions have passed or are beginning to consider passing privacy legislation that places significant restrictions

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on the processing of employee personal data. This chapter introduces practice pointers regarding monitoring of employee social media use at work as well as some steps to consider before making an employment decision based on information found on social media.

In addition to these three general-interest chapters, the sixth edition of The Employment Law Review includes 48 country-specific chapters. This edition has once again been the product of excellent collaboration. I wish to thank our publisher, particularly Gideon Roberton, Katherine Jablonowska, Adam Myers, Eve Ryle-Hodges and Shani Bans, for their hard work and continued support. I also wish to thank all of our contributors, as well as my associates, Jon Dueltgen and Courtney Bowman, for their efforts to bring this edition to fruition.

Erika C CollinsProskauer Rose LLPNew YorkFebruary 2015

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Chapter 31

NIGERIA

Olawale Adebambo, Folabi Kuti and Ifedayo Iroche1

I INTRODUCTION

Employment law in Nigeria is not founded on the provisions of a single statute. Rather, it is dispersed in different legislation that together provides the framework. While there is an unsettled discussion as to whether the Labour Act (LA) extends beyond unskilled and manual workers, it nonetheless remains the governing law for labour matters.

Nigerian law allows freedom of contract in upholding and binding employers and employees to their agreements. There are also various statutory provisions of which parties must take cognisance when contracting; the laws regulating pensions and tax for instance, are not within the scope of contractual freedom.

Section 20 of the Trade Dispute Act (TDA)2 establishes a specialised court, the National Industrial Court (NICN), with exclusive responsibility for handling employment-related disputes; the Constitution of the Federal Republic of Nigeria 1999, as amended (CFRN)3 further endorses the NICN’s authority and jurisdiction. The Industrial Arbitration Panel (IAP) also set up by the TDA is responsible for settling any dispute referred to it by the Minister of Labour and Productivity (the Minister). Any objection to an IAP award is taken before the NICN. Appeals from the NICN lie as of right to the Court of Appeal on questions of fundamental rights contained in Chapter IV of the CFRN in relation to matters under its jurisdiction.4

1 Olawale Adebambo and Folabi Kuti are partners and Ifedayo Iroche is an intermediate associate at Perchstone & Graeys.

2 Chapter T8, LFN 2004. 3 Section 254C (2). 4 Section 243 (2) of the CFRN.

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II YEAR IN REVIEW

Sole proprietorship remains attractive to the Nigerian populace in view of the mismatch between the rate of unemployment and availability of paid employment. Statistics reveal that, in terms of the age distribution of owners of such enterprises, 93.3 per cent are aged 36 and above, while the 15–35 age group accounts for 6.67 per cent.5 An analysis of some 5,000 enterprises (4,615 with legal status) in a Report of the Nigerian Social Statistics Report produced by the National Bureau of Statistics in the year to end 2012, show the dominant business structures in Nigeria:6

Legal status Number Percentage

Sole proprietorship 2,760 59.80

Partnership 268 5.81

Joint venture 82 1.78

Private limited liability 1,096 23.75

Public limited liabilities 214 4.64

Cooperative 34 0.74

Statutory corporation 57 1.24

Faith-based organisation 104 2.25

Total 4,615 100

The 2012 Report also presents a rundown of industrial disputes between 2004 and 2008. In 2004, there were 36 disputes; this increased to 189 in 2006 and almost 300 in 2008. In 2004, 26 of the disputes led to strike actions, compared with 93 in 2008. A total of 127,377 workers were involved in the disputes of 2004 whereas in 2008, 868,907 workers went on strike. Overall, 2.63 million man-days were lost in 2004, compared with 8.97 million in 2008. Community, social and personal services recorded the highest number of disputes at 231,067.7 A number of employment-related disputes relate to trade unions and collective bargaining agreements (CBAs); whether these are a mandatory requirement and their enforcement.

III SIGNIFICANT CASES

With the mandate given to the NICN to consider and apply best international labour practice when adjudicating on matters within its jurisdictional competence,8 2014 saw

5 National Bureau of Statistics website: Job Creation Survey Report (www.nigerianstat.gov.ng/pages/download/186).

6 Ibid.7 National Bureau of Statistics website: Social Statistics Report in 2012 (www.nigerianstat.gov.

ng/pages/download/170). 8 Section 245C (1) (f ) of the CFRN 1999, as amended.

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a significant number of cases handed down by it highlighting the need for a constant interplay of equity and fair play in the workplace.

i Protection of employees in cases of unfair labour practices

The facts of Mr Shittu Habib v. Coral International Limited 9 and Abel Abel v. Trevi Foundation Nigeria Limited 10 present interesting examples of the NICN intervening to afford equity to workers injured in the course of their work where the employers, in an apparent bid to avoid liability for compensatory damages, contended that the workers were not under their employment as at the time of the accident. The court, in both cases, noted that even though the claimant did not show any letter of employment, a contract of employment could be properly inferred from the conduct of the parties; in the Abel case, the fact that the claimant had been doing some work for the defendant for which the defendant paid an ‘allowance’, coupled with the issuance of a work identity card.

The court further invoked its equitable jurisdiction to assist the hapless employee in the Habib case by awarding monetary compensation to enable him obtain surgery to remove metal from his leg.

Also worthy of note is the commendable effort of the NICN at expanding the hitherto seemingly inflexible principles of common law (deeply engrained in the nation’s labour jurisprudence) to accommodate far-reaching results for the aggrieved employee. Where it was established that an employer, without just and established cause, impugned the integrity of an employee and based on this impugnment, went ahead to peremptorily terminate his employment,11 the NICN not only condemned the act as an unfair labour practice, but also held that such a detestable practice cannot be adequately compensated by the right to payment of a month’s salary in lieu of notice which the wrongfully terminated employee would ordinarily have been entitled. Relying on applicable provisions of the CFRN and the National Industrial Court Act 200612 that enable the Court to award damages as a relief for the unfair labour practice of unfair dismissal and further stating that the Court can take guidance from the more elaborate provisions of foreign statutes as to appropriate remedies when a proof of unfair dismissal is established, the court awarded the claimant five months’ salary as general damages, in addition to one month’s salary in lieu of notice.

9 Unreported suit No: NIC/PHC/79/2013 delivered on 26 June 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=625); The NICN held that an employee need not necessarily prove his employment by a written employment letter to maintain a claim against an employer.

10 Unreported suit No: NIC/PHC/55/2013 delivered on 26 June 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=626).

11 Unreported suit No: NICN/AB/03/2012 Godwin Okosi Omoudu v. Prof Aize Obayan & anor, judgment delivered on 10 October 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=694).

12 Section 254D [2] of the 1999 Constitution [as altered] and Sections 14 and 19 [d] of the National Industrial Court Act, 2006.

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In The Registered Trustees of Union Bank & Anor v. Union Bank Of Nigeria &Ors,13 the court held that as the practice of payment of a 13th month (ex gratia) salary had carried on uninterrupted for 23 years, it had become a custom between the parties, such that a party could seek its enforcement through judicial process.

Giving lucid conceptual clarifications on the power of the employer to suspend or dismiss an employee; the legal consequences of ‘suspension’; and when an allegation of conflict of interest can be made against an employee, and the corresponding duty on the employer to establish the allegation of conflict against the dismissed employee, the court in Mr Peter Olasunkanmi Atoki v. Ecobank Nigeria Ltd14 held that the defendant bank failed to establish the conflict of interest and professional misconduct against the claimant to its satisfaction.

Despite the excitement of a new process for settling labour grievances that is arguably pro-employee, it is instructive to mention that the cases of Awodusi Gbenga & Ors v. Total Data Limited 15and Mr Osamota Macaulay Adekunle v. United Bank for Africa Plc16 do not necessarily support this position.

In the former case, the claimants were employed under individual and separable contracts with, inter alia, differing salaries and emoluments and conditions of service. Only the first claimant was called to testify. The court had to invoke its equitable jurisdiction to rely on the documents ‘front loaded’ but never tendered in evidence17 to avail the fourth claimant of the relief sought on the substantive suit. There was no such document before the court to avail the remaining 142 claimants of any relief. The court held that: ‘Failure of the other Claimants except 1st and 4th to lead evidence in proof of their claims has fatally damaged same […]. The claims of the 1st and 4th Claimants succeed in part while those of the other claimants fail and are dismissed accordingly.’

In the Osamota case, the claimant only sought declaratory reliefs, which by law, cannot be executed, being merely declaratory as to the rights and obligations of parties. But that was not the only pitfall. The specifics were not clearly stated or established. The Court noted disapprovingly that even though the claimant sought a declaration that he was entitled to ‘all his entitlements, salaries, allowances, bonuses, emoluments and other perquisites of office’ from 17 September 2009, when he was suspended, to the date

13 Unreported suit No.NICN/LA/555/2012, judgment delivered on 17 October 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=702).

14 Unreported suit No. NIC/LA/103/2011, delivered on 12 June 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=651).

15 Unreported suit No: NICN/LA/490/2013, judgment delivered on 24 August 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=677).

16 Unreported suit No: NICN/IB/20/2012 judgment delivered on 21 May 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=616).

17 The front-loading system is a requirement under the High Court Rules designed to ensure full research and knowledge of the facts of a case, with processes relating thereto and full preparation of evidence being brought to the attention of the court before the hearing of a suit. Both parties are required to file alongside the pleadings certain supporting items, ensuring full and upfront disclosure of their respective cases.

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of the judgment, those were not shown in specific terms: ‘I must stress that since the claimant’s “entitlements, salaries, allowances, bonuses, emoluments and other perquisites of office” have not been proved before this Court, this Court cannot make any order in their regard.’

ii Jurisdiction

The circumscribed jurisdiction of the NICN as an exclusive labour dispute resolution forum came up for consideration in a few cases in the year under review. In many decisions on this point, the NICN reiterated that its prescribed jurisdiction does not extend to matters with claims dealing with tax, pensions and allied issues that the aggrieved employee often claims as ancillary to his principal claims. In Miss Odiette Hope v. Jopa Energy Ltd,18 the court declined the invitation to exercise jurisdiction over a tax-related relief contained in the claim before the court.

In Sir HUC Chukwudire & Ors v. Governor of Imo State & Ors,19 the NICN also had an opportunity to affirm its inelastic jurisdiction as not extending to tenancy-related issues. The NICN has similarly refused to adjudicate over matters involving contractual relationships between an independent contractor and the hirer.20

Non-compliance with a condition precedent to the court exercising jurisdiction on a relief conferred on an employee under the Employee’s Compensation Act 2010 was successfully raised and argued in Mr Mashood Ilupeju v. PZ Cussons Nigeria Plc.21

iii The final instance court

A litigant who is not satisfied with the decision of the NICN can only appeal as of right where the decision relates to questions of fundamental rights as contained in Chapter IV of the CFRN or in criminal cases where they relate to matters upon which the NICN has jurisdiction. Appeal in other matters shall only lie from decisions of the NICN to the Court of Appeal as may be prescribed by an act of the National Assembly and with leave of the Court of Appeal.

18 Unreported suit No: NICN/LA/408/2012, judgment delivered on 31 March 2014 (can be accessed at http://judgment.nicn.gov.ng/cont-dtl.php?contC=579). Similar decisions were handed down in Ganiyu Kolapo Rafiu v. Sara Foods Ltd, Unreported suit No: NICN/LA/388/2012, judgment delivered on 30 September 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=579); Mr Henry Nwosisi v. Bridgeways Global Projects Ltd, Unreported suit No: NICN/LA/147/2013, judgment delivered on 9 October 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=641); and Ms Edith Ejiogu v. Mainstreet Bank Estate Company Ltd, Unreported suit No: NICN/LA/48/2013, judgment delivered on 9 June 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=579).

19 Unreported suit No. NIC/OW/07/2013, judgment delivered on 30 June 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=635).

20 Unreported suit No: NIC/LA/294/2012, judgment delivered on 6 May 2014, (http://judgment.nicn.gov.ng/cont-dtl.php?contC=618).

21 Unreported suit No: NICN/LA/406/2012, judgment delivered on 29 April 2014 (http://judgment.nicn.gov.ng/cont-dtl.php?contC=592).

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There is no such act of the National Assembly and until there is an enactment to that effect or a subsequent amendment of Section 243 of the CFRN, the NICN remains the final and ultimate court in all causes or matters upon which it has jurisdiction except in decisions relating to questions of fundamental rights connected with Chapter IV or criminal causes.22

IV BASICS OF ENTERING AN EMPLOYMENT RELATIONSHIP

A bill amending the LA recently passed second reading at the Nigerian House of Representatives. If passed, it will limit the employment of workers on a casual or temporary basis to two years, requiring employers to convert casual workers to ‘permanent status’ after they have served two years as temporary staff;23 an issue that had been raised numerous times by unions.

i Employment relationship

An employer is required to provide an employee with a written employment contract within three months of the employee commencing his or her job. This must contain:a the employer’s name or group of employers;b the worker’s name, address, position and date of engagement;c the nature of the employment;d the date of expiry, if a fixed-term contract;e the notice period for termination;f wages, frequency of payment amd method of calculation;g hours of work, holiday pay, incapacity due to sickness and injury; andh special conditions of the contract.24

Signing of a contract is a general requirement to make it legally binding. The employee’s signature is relevant to signify acceptance of its terms. Fixed-term contracts are permissible and must specify the terms set out above.

The LA allows parties to change or amend terms after execution, obliging the employer to inform the worker of the nature of the change by a written statement not more than one month after it is made.25 Where a copy of the statement is not left in the

22 The foregoing was recently reaffirmed by the Court of Appeal (Lagos Judicial Division) in Lagos Sheraton Hotel and Towers v. Hotel and Personal Services Association. Reported in [2014] 14 Nigeria Weekly Law Reports (NWLR) (Pt 1462) 45 at 70. The decision was delivered on 15 July 2014

23 A Bill for an Act to Amend the Labour Act, Cap LI, Laws of the Federation of Nigeria, 2004, to provide a Time frame for the Regulation of Casual or Temporary Employment to Permanent Status by all Employers of Labour in Nigeria and for other Matters Related thereto.

24 Section 7 (1) (a)–(f ), Labour Act.25 Section 7 (2) (a) and (b) Labour Act.

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possession of the worker, he or she must be given reasonable access to it during the course of his or her employment.

ii Probationary periods

Probationary periods in employment contracts are permissible; the duration and length of notice to terminate during the period being subject to agreement between parties. Parties are free to waive the requirement of notice.26 Industry practice is usually for probation to last for three months.

iii Establishing a presence

For a foreign company to hire employees to carry on business in Nigeria, it must establish its presence27 by incorporation under the Companies and Allied Matters Act (CAMA)28. It cannot own a place of business before incorporation, except for receiving correspondence, notices and other documents preliminary to incorporation. CAMA29 empowers the National Council of Ministers, on application by a foreign company, to grant exemption from incorporation to a limited category.30

The Minister may licence fit and proper persons to recruit citizens in Nigeria for employment outside Nigeria (for 12 months from the date of issue).31 An unincorporated company may engage an independent contractor to carry out a specific task or contract but strictly for that purpose and not to carry on any business in its favour. A joint venture agreement between a foreign company and an indigenous company would allow for employment of persons; with the local company (having legal status) hiring the employees.

26 Section 11 (6) of the Labour Act.27 Sections 54 and 55 of CAMA. 28 Chapter C20 LFN 2004. 29 Section 56 of CAMA. 30 A foreign company may apply to the National Council of Ministers for exemption from

incorporation if it belongs to one of the following categories: (1) foreign companies (other than those specified in paragraph (d) of Section 56 (1))

invited to Nigeria by or with the approval of the Federal Military Government to execute any specified individual project;

(2) foreign companies that are in Nigeria for the execution of sa pecific individual loan project on behalf of a donor country or international organisation;

(3) foreign government-owned companies engaged solely in export promotion activities; and

(4) engineering consultants and technical experts engaged on any individual specialist project under contract with any of the governments in the Federation or any of their agencies or with any other body or person, where such contract has been approved by the Federal Military Government.

31 Section 25 (1) of the Labour Act.

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The Personal Income Tax Act, as amended (PITA) obliges the employer to ensure monthly remittance of employees’ taxes. The Pension Reform Act 201432 (PRA) obliges the employer to make a monthly deductions of 8 per cent from its employees’ salaries and the add an additional 10 per cent contribution and remit to the employees’ retirement savings accounts (RSA). The employer is also to maintain a group life insurance policy in favour of each employee for a minimum of three times the annual total emolument of the employee and the premium shall be paid not later than the date of commencement of the cover.

V RESTRICTIVE COVENANTS

The position regarding restrictive covenants bears considerable resemblance to that in England. The courts apply a reasonableness test to determine whether or not to give effect to such clauses; the burden of proof for ‘reasonableness’ lies upon the party seeking to enforce it.

There is no express prohibition in Nigeria’s laws on incorporating restrictive covenants, which may have retrospective effect. An employer needs to be mindful of what proprietory interest it seeks to protect, as judicial trends sometimes lean towards the employee. While the employers may have legitimate reasons for imposing restrictive covenants, they are often considered to inhibit competition and are liable to be struck down by the courts if held unreasonable.

VI WAGES

The Nigerian legislature is considering an amendment to the CFRN which will, inter alia, divest the central government of its sole power to prescribe a national minimum wage. If passed, the central government and Nigeria’s 36 states will be at liberty to prescribe their own minimum wage.33

i Working time

Pursuant to the LA, normal working hours in any employment contract shall be fixed by agreement or any collective bargaining process within the organisation or industry; or by an industrial wages board (where there is no machinery for collective bargaining). The Act is silent on the duration of the actual working day, which in practice, is regulated by company policy. While determining the work hours, the statutory minimum for rest periods and leave34 need to be considered.

32 The PRA 2014 was signed into Law on 1 July 2014, repealing the Pension Reform Act 2004.33 The National Assembly recently concluded work on the fourth proposed alteration and

transmitted the same to the 36 state houses of assembly for consideration. Earlier, 71 issues were formulated by the two chambers of the National Assembly for consideration; only 23 were passed by both chambers.

34 The Act provides that where an employee is at work for six hours or more a day, his work shall be interrupted (to the extent that is necessary, having regard to its character and duration and

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Aside from the LA’s provisions prohibiting the employment of women for night work in a public or private industrial undertaking or any agricultural undertaking and young persons below the age of 16 (and over 16, with exceptions), there are no other such restrictions. The prohibition on the employment of women for night work35 does not extend to women employed as nurses or holding responsible positions, or management not ordinarily engaged in manual labour.

ii Overtime

Overtime is defined under the LA as the hours an employee is required to work in excess of the normal fixed hours. While the LA does not categorise overtime work, it recognises work done in excess of agreed hours and contains time off (rest periods) or payment in lieu for worked hours. In practice, overtime wages are calculated on an hourly basis on par with the normal hourly rate of the worker and may differ per staff category.

While the Act is silent on a threshold for the actual amount of overtime hours an employee can undertake per month, the total number of working hours undertaken should fall within the permissive periods of leave and rest. The quantum of overtime wages falls within the purview of the contract and in practice the rate is determined by the employer’s internal policies.

VII FOREIGN WORKERS

The Immigration Act36 prohibits companies from employing a foreign national without the permission of the Director of Immigration, unless the Minister of the Interior (the Minister) grants a waiver or exemption by notice.37 Persons entering Nigeria for business purposes must obtain the Minister’s consent.38

There is no mandatory requirement for an employer to maintain a register of foreign workers. However, by the Immigration Act (Control of Aliens) Regulations, all foreigners (having undergone legal formalities for residency) are to register their presence with the immigration offices closest to their place of residence within 21 days of arrival. Companies seeking to employ expatriates are to obtain a permit from the Nigerian Investment Promotion Commission. The expatriate quota (temporary or permanent

to the working conditions in general) by allowing one or more suitably spaced rest intervals (the rest intervals being not less than one hour in aggregate. Furthermore, in every seven days, an employee is entitled to one day of rest, which shall not be less than 24 consecutive hours.

35 The word ‘night’ is defined to mean: (1) with respect to industrial undertakings, a period of at least 11 consecutive hours,

including the interval between 10pm and 5am; and (2) with respect to agricultural undertakings, a period of at least nine consecutive

hours including the interval between 9pm and 4am. 36 Chapter 11, LFN 2004. 37 Section 34. 38 Section 8(1).

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until review), issued for two years and renewable thereafter, determines the number of foreign workers the employer may have.

The visa to be applied for is determined by the intended duration of employment. Experts invited to perform a specialised job for a short period would ordinarily apply for a temporary work permit. Those wishing to permanently reside in Nigeria would require a ‘subject to regularisation’ visa and subsequently, a combined expatriate residence permit and alien card. Foreigners working in Nigeria are subject to immigration approvals, controls, permissions and permits.

The legislation regulating tax matters for individuals is the PITA.39 A company is to remit tax on behalf of its foreign employee where the employer is in Nigeria or has a fixed base in Nigeria; or where the duties of the employment are wholly or partly performed in Nigeria, unless:a the duties are performed on behalf of an employer who is in a country other than

Nigeria and the remuneration of the employee is not borne by a fixed base of the employer in Nigeria;

b the employee is not in Nigeria for a period or periods amounting to an aggregate of 183 days (inclusive of annual leave or temporary period of absence) or more in any 12-month period; and

c the remuneration of the employee is liable to tax in that other country under the provisions of the avoidance of double taxation treaty with that other country.

Tax remitted in Nigeria may be available for relief, depending on the existence of a double taxation treaty between Nigeria and the employee’s home country.

Nigerian employment legislation does not discriminate between foreign and local workers. In practice, the employee’s contractual terms may elect for the home country pension arrangement to remain or subsequent transfer of his RSA content to his home country on retirement.

VIII GLOBAL POLICIES

Employer–employee relationships in the private sector are formalised by parties entering an employment contract. It is commonplace for organisations to have a handbook containing additional details on matters antecedent to the relationship. Although internal discipline rules are common, they are not mandated by law. In practice, they are found in the handbook and in some cases, completed by the contract or CBA. Public sector workers may be bound by rules specific to their establishments/industry.

It is common practice for a handbook to be provided to the employee at the commencement of employment or shortly thereafter, or to be included as part of the contract. Its terms do not have to be agreed through a representative body or approved or filed with a government authority. In some instances, however, they may be reviewed by representative bodies, for instance where the employees are unionised. Acceptance of the employment offer is usually predicated on acceptance of internal rules. The employees,

39 See Section IV.iii, supra.

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however, must be notified of the existence of such rules and any subsequent changes to them.

Nigerian laws deal with discrimination, sexual harassment, corruption and related matters. The CFRN enshrines the right to freedom from discrimination,40 which is forbidden in the workplace.41 Section 17(3) requires the state to direct its policy towards ensuring that ‘there is equal pay for equal work without discrimination on account of sex, or any other ground’.42

The Trade Union Act, as amended (TUA) stipulates that ‘if any person is refused admission into a union on discriminatory grounds, the union and all its officials shall be guilty of an offence’.43 The LA also states that contracts that cause the dismissal or prejudice a worker on the grounds of belonging to or not being a member of a union or participating in union activities is in contravention of the Act and shall be struck down.

In Nigeria, the official language is English and therefore, employment contracts are usually in English. The nature of the document and contract terms would determine whether the same is to be signed by the employee or a simple notification would suffice. There is no prescribed format for where such rules are to be posted. However, the LA requires the employee to have access to the contract and to be notified of any changes thereto; in practice, organisations provide employees with a hard copy and make them easily available (electronically or otherwise).

IX TRANSLATION

Ordinarily, Nigerian law presumes in favour of a person of full age and capacity, that such a person fully understands the meaning of any document that he or she signs; the exceptions being in cases of fraud, illegality, duress or coercion.

There is no statute or regulation requiring employment documents to be translated into local or an employee’s native language. The tendency is for employment and relevant documents to be in English.44 It is prudent, however, that where an employee does not speak or understand the employer’s preferred language, his employment documents be translated into one he understands.

40 Section 42 of the CFRN. 41 Section 17 of the CFRN. As regards corruption, there are a number of Nigerian laws in this

respect.42 While admirable in its intent, being under Chapter II of the CFRN, Section 17 is not

justiciable. Thus, unless a law is passed embodying the provision, it is not possible to rely on it as a basis for challenging any discriminatory practice in a court of law.

43 Section 12 (2)44 The LA defines foreign contracts as contracts for the employment of citizens outside Nigeria.

Section 38 provides requirements specific to such contracts, including that the contracts are read to or translated into a language understood by such persons.

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X EMPLOYEE REPRESENTATION

The CFRN grants all persons the fundamental right to peacefully assemble and associate. The LA and TUA permit employees to form and belong to a union. The membership of a union or representative body must be voluntary and no employee is to be forced to join or to be victimised for refusing to join or remain a member.

The ratio of representatives to employees differs per institution and is not the subject of statute. In accordance with the TUA, an application for the registration of a union must be supported by at least 50 members for a union of workers and two for a union of employers.

The election procedure, terms of office of representatives and the frequency of meetings are regulated by the union’s constitution or guiding document. The TUA requires registered unions to constitute an electoral college to elect members to represent them in negotiations.

The rights and protection of employees’ representatives are as guaranteed by the CFRN. The LA prohibits contracts from making it a condition of employment that a worker shall or shall not join a union, and prohibits employers from causing the dismissal or prejudice against a worker: a by reason of union membership; b because of union activities outside working hours or, with the consent of the

employer, within working hours; orc by reason of the fact that he or she has lost or been deprived of membership of a

union or has refused or been unable to become, or for any other reason is not, a member of a union.

Employers are required to recognise any registered union within its organisation, once notified by employees that they are members. The employer is to deduct labour dues from members’ wages for remission to the union’s registered office, within a reasonable period or such period prescribed by the Registrar of Trade Unions.

XI DATA PROTECTION

Nigeria does not currently have a data protection statute. The usual recourse is the CFRN, which guarantees ‘the privacy of citizens, their homes, correspondence, telephone conversations and telegraphic communications’ and English common law. In practice, employers provide for data protection in their handbooks or employee contracts.

Nigeria’s Freedom of Information Act 2011 is applicable only to personal information in the custody of public agencies and institutions in Nigeria.

The Personal Information and Data Protection Bill and Computer Security and Critical information Infrastructure Protection Bill, pending before the National Assembly, will provide the legal framework for privacy and data protection.

i Requirements for registration

There is currently no data protection agency requiring registration. Where data is used in the course of the company’s usual line of business, consent or notification to the

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employee may, arguably, not be necessary. Where it is assumed that the employee’s consent was obtained on executing his contract, a clause to this effect should be included in the handbook or contract.

In practice, companies tend to limit access to information about employees and company data, regulated by contractual terms. While the need to ensure adequate technical protection is not a statutory requirement it is, however, commercially prudent.

ii Cross-border data transfers

There is presently no registration requirement for cross-border data transfers. To the extent that there is no law directly on this, it may be right to imply a use pursuant to company business. There is no law that expressly requires the employee’s prior consent, especially where the transferred data is used in the course of the company’s usual line of business. The use of a joint-user agreement or safe harbour registration is discretionary.45

iii Sensitive data

Due to a paucity of legislation on this, there is no precise definition of what constitutes ‘sensitive data’. Nigeria does not operate a social security system; medical information, client–solicitor communications and bank–customer communications do enjoy conditional protection by law. In view of the absence of specific legislation restricting the processing of sensitive data, the lasting restrictions are the privacy guarantees of the CFRN and ethical requirements for particular relationships.

iv Background checks

Background checks are not the subject of statutory regulation and anecdotal evidence suggests that many employers conduct such checks as a matter of prudence, although the employee’s approval may be required for certain checks. Credit and criminal records checks are allowed. There is no centralised credit registry in Nigeria, leaving an individual’s financial records in the custody of his or her bank, accessible only with clear authorisation and prior consent. Undertaking criminal checks is a fairly common practice, by discreet application to the Nigerian police.

XII DISCONTINUING EMPLOYMENT

i Dismissal

Generally, Nigerian law permits parties to an employment contract to terminate for reasons (good and bad), or for none at all. The terminating party must comply with the

45 Nigeria recently passed a Cybercrime Bill into law, providing a legal framework for the prohibition and punishment of electronic fraud and cybercrime while promoting e-government services, electronic communications and transactions between public and private bodies as well as institutions and individuals. It also regulates certain acts and omissions in line with regional and international best practices and provide procedural guidelines for the investigation of such offences.

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contract terms. The law distinguishes between termination and dismissal; dismissal being a severe sanction available only to the employer, connoting some grave infraction by the employee (e.g., theft, fraud or gross insubordination); often exercised without notice or payment.

An employee should only be dismissed for a stated cause. Before a decision is reached on account of an infraction, the law requires the employer to afford the employee the opportunity to make representations in defence against such allegations. A failure to do so may lead a court to declare wrongful dismissal, entitling the employee to damages.

Notification to the authorities of the dismissal is generally not required. However, certain industries require prior notification to the industry regulator.46 Except where expressly stated in any CBA, notification to a works council or union is not required.

The closest to a social plan for dismissed employees is the RSA contributory scheme; the employer’s obligations should be up to date as at the time of dismissal. An employee has no legal right of rehire although employers are not debarred from extending this privilege.

A terminating party may be the employer or employee. The LA (and most contracts) state the required termination notice period. It is widespread practice for contracts to contain a clause permitting payment in lieu of notice.

The LA protects a woman who is absent from work for a longer period due to a certified illness arising out of her pregnancy or confinement from receiving a notice of dismissal during her absence or one expiring during her absence. An employer is not to cause the dismissal of or prejudice a worker by reason of a union membership and related reasons.47

Severance pay required in a dismissal is as set out in the contract. Employers may make (discretionary) ex gratia payments. The parties may also enter a settlement agreement.

ii Redundancies

The NICN, in its recent judgment in Mrs Winifred Omage v. NAIRDA Nig Ltd & Anor,48 gives a succinct exposition of the law on redundancy. Peters J makes a categorical summary of the situation that will not constitute redundancy under the applicable law,49

46 In the oil and gas industry, a notification of a termination or dismissal must be submitted to the Department of Petroleum Resources.

47 See Section X, supra. 48 Delivered on 30 September 2014; suit No.: NICN/LA/63/2013 (http://judgment.nicn.gov.

ng/cont-dtl.php?contC=704). 49 The Nigerian labour jurisprudence recognises situations of redundancy which the Labour Act explains to mean

an involuntary and permanent loss of employment caused by an excess of manpower. See section 20(3), Labour Act. Subsection 1 of section 20 of the same legislation makes elaborate provisions relating to redundancy. […] The state of the law is trite and it is on the authority of National Electricity Power Authority v. Friday Edokpayi Eboigbe (2008) LPELR-8576, that when an employer relies on redundancy to disengage the services of an employee, the burden is on the employer to satisfy the Court on the reason and furnish facts or law in support of his action […]

Now to the instant case, Exh. C5 is a letter dated 11/11/11, addressed to the Claimant and simply titled ‘Redundancy’. It is a document of 4 short paragraphs. I deem it imperative to reproduce the content of that document as follows:

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confirming that Section 20 of the LA provides the procedure by which a redundancy might be embarked upon and declared. The principle of ‘last in, first out’ is to be adopted, subject to relative merit, skill and ability.

The law does not differentiate multiple redundancies nor require government notification. Employers are to inform the union or worker’s representative of the reasons for and extent of the anticipated redundancy. In certain industries, this requirement may extend to the regulator.

There is no redundancy notice period and the applicable contract, handbook or CBA may stipulate this.50 The employer is to ensure fulfilment of its severance, statutory and contractual obligations. Nigerian legislation does not protect employees from redundancy or confer rehire rights; offers of suitable alternative employment may be exercised.

XIII TRANSFER OF BUSINESS

Nigerian law imposes no obligation to protect employees in an employer’s successor company in the event of a business transfer. An employee’s position before and after transfer is a matter of contract between the employee and the transferor employer. The transferee assumes no obligation to existing employees, save as intended at the contracting stage.

It is important, however, to understand this in the light of the LA, which places a notification obligation on an employer where its intention is to transfer an employee’s contract. Such transfer shall be subject to the worker’s consent and endorsement of the transfer upon the contract by an authorised labour officer.51 Redundancy provisions may be relevant (depending on the structure of the merger or acquisition).

The LA is limited in the security it provides. The existence of a CBA may afford a degree of protection, to the extent of organised labour’s ability to influence policy direction. The relevant business transfer laws are the Investment and Securities Act 2007 (ISA), CAMA and the Company Regulations of 2012.52

“Redundancy This is to inform you that your services are no longer required with effect from today 11th November, 2011. Your final entitlement will be paid to you after deducting all loans/IOU’s that may be outstanding against

you. You are to handover all company’s property that may be in your possession including your ID card before your departure. Wishing you success in your future endeavour.”

[…] I have no evidence before me attesting to compliance with the provision of section 20 (1) of the Labour Act and indeed paragraph (a) of same. An irresistible conclusion l can reach from the preceding discussions is that Exh. C5 does not amount to a letter of redundancy in the real sense of the word, the requisite condition precedent to declaring redundancy not having been met by the 1st Defendant. It is also instructive to note that indeed the word “Redundancy” was not used anywhere in the body of Exh.C5 save just the title only.

50 In practice, although this is not a legal requirement, notice periods are generally between three and six months.

51 Section 10(1) of the Labour Act.52 Pursuant to Sections 16, 585 and 609 of the CAMA.

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In summary, companies proposing a merger or acquisition shall, in compliance with the ISA, file with the Securities and Exchange Commission (SEC) a pre-merger notice and a formal application for approval of the proposed merger. It shall comply with post-approval requirements, including obtaining a court order sanctioning the arrangement and subsequently, within five days of the order, file a notice with the SEC. The obligatory filings with the Corporate Affairs Commission and associated costs are matters for CAMA and accompanying regulations.

XIV OUTLOOK

The CFRN is likely to remain topical. It designates the NICN as a superior court in the hierarchy of courts, raising the question of whether it has unwittingly been designated the final arbiter in employment-related matters.53 Under the provisions of the CFRN54 appeals seem not to lie from its decisions, save on limited grounds. Employers and investors need to know this, both for existing employee relationships and from an investment perspective. The evident willingness of employees to access the courts is a positive development; the concern, however, is with a process that seemingly constrains appellate review. A proposed amendment regarding the NICN’s jurisdiction is still awaited.

International (labour) treaties will continue to be in focus in the coming period; one side of the argument being that on account of the 2010 constitutional amendment, ratification (of a labour treaty) equates to domestication; namely, the constitutional provision mandating domestication of all treaties no longer applies to labour treaties. A pronouncement of the country’s highest court is expected to put the matter beyond doubt.

The Job Creation and Protection (Establishment) Bill (2003) aiming to consolidate Nigeria’s employment laws, now in its final stages before the National Assembly, is also awaited. Its principal objectives are employment contracts and enhanced work terms and conditions.

The NICN’s approach to ex gratia payments is also of interest: ‘“[A]nything accorded as a favour, as distinguished from that which may be demanded ex debitio, as a matter of right” is the trite and legal position as far as such payments are concerned.’55 An emerging philosophy, however, is that facts of a case taken as a whole may lead to a conclusion that the circumstances attending an ex gratia payment have created legal rights and obligations in relation to the same. In other words, as the court has recently held, something may change the nature of a payment notwithstanding that it is dubbed

53 Folabi Kuti, ‘National Industrial Court: Infallible because it is final’, The Guardian (Nigeria), 12 November 2013.

54 Section 9 (1) and (2). 55 Pan Ltd v. Oje & others (1991) LPELR-6331 (CA).

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ex gratia.56 The NICN being de facto a final court, employers must be very clear when agreeing such terms or payments.

It is expected that international best practice pronouncements will continue to feature prominently in employment adjudications in the coming period; with anything negating or undermining those principles frowned upon. It is in this wise that we note CBAs. These are likely to remain topical. Given recent pronouncements of Nigeria’s apex court on what constitutes such an agreement,57 both employers and unions will want to exercise extra caution when negotiating pursuant to a CBA.

56 Registered Trustees of Union Bank & Another v. Union Bank & Others; NIC/LA/555/2012 unreported.

57 Osoh v. Unity Bank PLC (2013) 9 NWLR Pt 1358 1.

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Appendix 1

ABOUT THE AUTHORS

OLAWALE ADEBAMBOPerchstone & GraeysOlawale commenced his professional career in England with the Crown Prosecution Service, moving on later to general commercial practice in Lagos, Nigeria, handling complex cases right through to the appellate courts. Thereafter he worked for the Law Society of England & Wales, establishing himself within its Regulation and Compliance Directorate and acquiring substantial experience regulating solicitors and in legal-practice development.

More recently Olawale’s portfolio has included advice to clients on matters unique to Nigeria’s upstream oil and gas sector, the applicable contracts and acting as co-counsel in some of Nigeria’s biggest-ever arbitral disputes emanating out of the terms of production-sharing contracts involving a number of international oil companies. Additionally, Olawale oversees the firm’s employment law portfolio, specifically with regard to international labour treaties, collective bargaining, employer–employee disputes, the National Industrial Court and, by virtue of his regulatory and compliance expertise, he also has responsibility for the firm’s legislative tracking team.

Olawale obtained his LLB (Hons) in England and is admitted to the Nigerian Bar. He is also admitted to practise as a solicitor in England and Wales. He is a full member of the Chartered Institute of Arbitrators, London, England.

FOLABI KUTIPerchstone & GraeysFolabi graduated with an LLB (Upper Division) from the Obafemi Awolowo University, Ile Ife. Upon being called to the Bar, he subsequently obtained an LLM from the University of Lagos.

He previously worked with one of the leading law firms in Lagos, where he garnered extensive knowledge of litigation, before joining the firm in 2005.

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Since joining the firm, Folabi has demonstrated competence in corporate commercial litigation, alternative dispute resolution, intellectual property law, insolvency and secured credit transactions. He brings to his work penetrating insights accrued over several years of experience in core litigation and he currently oversees the litigation department of the firm. He has a keen interest in the development of Nigerian law as well as in other jurisdictions.

His resourcefulness has contributed immensely to deepening the corporate and commercial advocacy practice of the firm. Folabi is a prolific writer and has published articles and commentaries on a wide range of subjects such as commercial litigation, civil procedure and literary criticism.

Folabi is a member of the Nigerian Bar Association, and the International Bar Association. He was recently appointed a notary public.

IFEDAYO IROCHEPerchstone & GraeysIfedayo was called to the Nigerian Bar in 2008 and started her career in a reputable law firm where she was exposed to the world of intellectual property, company secretarial responsibilities, legal drafting and review alongside requisite administrative duties.

Since she joined the firm, while capitalising on her previous work experience with diverse organisations, Ifedayo has further explored the corporate commercial world by assisting and advising clients (start-up or existing) in their corporate restructuring, regulatory and industrial compliance, labour and employment relations, company secretarial and legal advisory services, legislative review, documentary and agreement drafting and review and corporate commercial services.

Her skills in research and development have been harnessed alongside her editorial and writing skills, as a member of the editorial team of the firm’s quarterly newsletter and other publications. With excellent qualifications and a strong desire to excel, Ifedayo’s unique ideas and fresh energy is evidenced in her results and in every project she is a part of.

Ifedayo holds a master’s degree in law from the University of Lagos in Nigeria and is today a member of an association of professional negotiators and mediators in Nigeria.

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