The House of Representatives is putting forth a bill that aims to criminalize the non-payment or failure to pay salaries by employers of labor and corporate entities nationwide.
Once enacted into law, employees can request payment from their employers by submitting a written claim.
The bill, championed by Wale Hammed, a representative of the Agege Federal Constituency in Lagos State, and titled "The Employees Remuneration Protection Bill, 2023," has successfully passed its initial reading.
Section 7(1) of the bill stipulates that it is illegal for any employer to "refuse or neglect to pay the remuneration of their employees, as outlined in this Act."
Section 8(1) of the bill states that if an employee's compensation remains unpaid beyond the specified period permitted by the legislation, the employee can present a written demand to their employer for the payment of their entitlement to assert their claim.
Consequently, if an employee fails to make payment within five business days following the service of a demand under Section 9 of this bill, the employee can seek redress by petitioning the court, filing a motion on notice.
According to the bill, employers found guilty of failing to pay their workers' salaries risk imprisonment for a period of three to six months, without the option of a fine.
Similarly, a corporate entity that fails to comply with a court order regarding the remuneration of its employees faces a daily fine of N10,000 or may be sealed off for a duration not exceeding three months, provided that the default extends beyond two months.
Furthermore, the bill imposes a N10,000 penalty on any officer or agent of the organization, government parastatal, agency, body, or institution who deliberately or knowingly authorizes or permits the default or noncompliance with the directive until it is rectified.
With this proposed legislation, employers are required to furnish written terms of employment to returning employees within 14 working days, particularly for terms of employment exceeding one month.
The employment contract, binding on both the employer and the employee, must comprehensively outline the terms and conditions, remuneration, methods of payment, along with the character of the employment and the termination procedure by either party.
Section 27 of the bill ensures that an employee's petition to the court for payment of remuneration will not serve as grounds for disciplinary action, inquiry, suspension, or termination by the employer.
Meanwhile, Section 28 of the bill stipulates that in the event of an employer's bankruptcy, priority will be given to the payment of all outstanding remuneration to employees.
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