Reps propose punitive measures for late payment of wages, pension, emoluments
The House of Representatives on Tuesday passed through Second Reading a bill which seeks to ensure timely payment of salaries, pensions and other emoluments to Nigerian workers in the public and private sectors of the economy.
The private member bill titled: ‘Employees’ (Unpaid wages prohibited) bill which was gazetted since 2019, was sponsored by the Speaker, Hon. Femi Gbajabiamila provides penalties for violations and for related matters.
As captured in the bill, an erring employer is to pay 10% of one-month wage for defaulting in payment for a period ranging from one to 7 days; 20% of one-month wage ranging from 8 to 30 days; 30% of two months wage ranging from 30 to 60 days; and 30% of the wage for the duration and one-month imprisonment of the employer for a period ranging from 60 days and above.
Clause 1 of the bill provides that: “Notwithstanding anything to the contrary contained in any Act or in any other enactment or Law, the provision of this Act shall apply to all matters pertaining to payment of wages, pension, benefits and other emoluments by employers to workers in Nigerian.”
Clause 2 further stipulates that: “Every employer of labour in Nigeria, whether private or public; and whether it is employing any worker on permanent or contract basis must ensure that all payment of wages, salaries, pension and all benefits to workers are paid promptly without any delay weekly, fortnightly, monthly quarterly as may be agreed by parties in the contract of employment of the individual employee.”
Clause 3(1a-c) also provides that: “An employer is prohibited from entering into any contract with any workman for any deduction from the sum contracted to be paid by the employer to the workman, or for any payment to the employer by the workman for or in respect of bad or negligent work or injury to the material or other property of the employer or in respect of any fine unless: The terms of the contract contained in a notice kept constantly affixed at such place or places open to the workman and in such a position that it should be seen easily read and copied by any person whom it affects; or the contract is in writing signed by the workman; The deduction or payment to be made under the contract does not exceed the actual or estimated damage or loss occasioned to the employer by the proven Act or omission of the workman, or of some other person over whom he has control or for whom he has by the contract agreed to be responsible; and The amount of the deduction or payment is fair and reasonable having regard to all the circumstances of the case.”
Clause 3(2a & b) also stipulates that: “An employer shall not make any such deduction or receive any such payment unless the deduction or payment is made in pursuance of, or in accordance with such a contract aforesaid; and particulars in writing showing the acts or omission in respect of which the deduction or payment is made.”
Clause 4(1) An employer shall not hold on to the salary, wage, pension and any other benefit and emolument of any workman for a period of 7 days and above from the day the payment of such salary, wage, pension and any other benefit and emolument falls due save in the event of any force majure.
Clause 4(2) also provides that: “The various duration(s) of the breach of sub-section (1) of this section and the respective penalties attached shall be as set out in the schedule to this Act herein.
Clause 4(3) provides that: “Where the breach is in respect of other monetary benefits apart from monthly wage and monthly pension, the penalty shall be 30% of such monetary benefits for the period.
Clause 4(4) further provides that: “Without prejudice to the provisions of this Act, where the employer in breach of this section for more than 60 days is an individual, the schedule herein shall apply to such individual.
Clause 4(5) also provides that: “Without prejudice to the provisions of this Act, where the employer in breach of this section for more than 60 days is a small company other than a limited or public company, the penalties in the schedule herein shall apply to each of the Partners in the company.
Clause 4(6) also provides that: “Without prejudice to the provisions of this Act, where the employer in breach of this section for more than 60 days is a limited or public company, the schedule herein shall apply to all the directors of the company.”
As contained in the proposed legislation, the workman refers to “any person who has entered into or works under a contract with an employer whether the contract is for manual labour or clerical work whether oral or written, express or implied, whether it is a contract of service or a contract personally to execute any work or labour, but does not include an Independent Contractor, provided that the word ‘Workman’ shall have the same meaning as worker and employee.”
The bill which enjoyed the support of all the lawmakers was passed through Second Reading and referred to the Committee of the Whole for consideration and final passage through Third Reading.
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