Notice by length of service
1 day, 1 week, 2 weeks, or 1 month under Section 11. Get the table below and you get it right.
Always have a reason
Courts increasingly treat unexplained dismissals as wrongful. Document a justifiable reason every time.
Everything in writing
Query, hearing, termination letter, acceptance. The file is your defence if it is ever tested.
1. How much notice the law requires
Section 11 of the Labour Act sets minimum notice by length of continuous service. Your contract can require longer, never shorter. Notice of a week or more must be in writing.
| Length of service | Minimum notice |
|---|---|
| 3 months or less | 1 day |
| More than 3 months, less than 2 years | 1 week |
| 2 years to less than 5 years | 2 weeks |
| 5 years or more | 1 month |
Instead of notice, you may pay salary in lieu: the wages the employee would have earned during the notice period. Only the money part of wages counts, excluding overtime and allowances, and all outstanding wages must be paid on or before the notice expires.
2. Termination for misconduct: query first
Never dismiss for misconduct on the spot without a process. Issue a query letter, hear the written reply (and hold a short hearing for serious cases), then decide. Courts have repeatedly struck down dismissals where the employee was never told the allegation or given a chance to answer it. The process is: query, reply, hearing where warranted, decision letter.
3. Termination letter sample
Short, factual, and complete. It states the effective date, the notice or payment in lieu, and how final pay is settled.
Ref: [HR/2026/031] Date: [20 March 2026]
The [Job Title],
[Department]
Dear [Mr/Mrs/Miss Surname],
RE: TERMINATION OF EMPLOYMENT
We refer to your employment with [Company Name] which commenced on [start date], and to the disciplinary proceedings concluded on [date].
In accordance with [Clause X of your employment contract / Section 11 of the Labour Act], your employment will terminate effective [30 April 2026]. You will be paid [one month's salary of ₦X in lieu of notice], together with all outstanding wages, accrued leave, and entitlements, on or before your last day.
Please hand over all company property to [name] on or before your last day. Your final pay slip and tax deduction card will be issued with your final pay.
We wish you well in your future endeavours.
Yours faithfully,
___________________________
[Name], [HR Manager]
For: [Company Name]
4. Redundancy: the three duties
Redundancy means permanent job loss caused by excess manpower, not a disguised dismissal. Section 20 of the Labour Act imposes three duties:
- Inform the trade union or workers' representative of the reasons and the extent of the anticipated redundancy.
- Apply last-in-first-out within the affected category, subject to merit including skill, ability, and reliability.
- Negotiate redundancy payments with discharged workers in good faith.
Courts have awarded damages where employers paid severance but skipped the consultation and negotiation steps, treating severance and negotiated redundancy pay as different things. Follow all three, in writing.
5. Handling a resignation
When an employee resigns, acknowledge it in writing within days: confirm the agreed last working day per the contract's notice period, state handover expectations, and explain how final pay, accrued leave, and benefits will be settled. File the resignation letter with your acceptance. Silence creates disputes about when employment actually ended and what is owed.
Termination questions employers ask
How much notice must I give to terminate an employee in Nigeria?
Under Section 11 of the Labour Act: 1 day for service of 3 months or less, 1 week for 3 months to 2 years, 2 weeks for 2 to 5 years, and 1 month for 5 years or more. Notice of a week or more must be in writing. Your contract may require longer, never shorter.
Can I terminate an employee without giving a reason in Nigeria?
The old common-law position allowed it with proper notice, but the National Industrial Court increasingly treats unexplained dismissals as wrongful where no valid reason exists. The safe practice is to have a documented, justifiable reason for every termination.
What is payment in lieu of notice?
Paying the employee the wages they would have earned during the notice period instead of asking them to work it. Only the money part of wages counts, excluding overtime and allowances. All outstanding wages must be paid on or before the notice expires.
What must an employer do in a redundancy in Nigeria?
Inform the union or workers' representative of the reasons and extent, apply last-in-first-out within the affected category subject to merit, and negotiate redundancy payments with discharged workers. Courts have awarded damages where employers skipped these steps.
How should I handle an employee's resignation?
Acknowledge it in writing with the agreed last working day, state handover expectations and how final pay and benefits will be settled, and file both letters. A written acceptance prevents disputes about when employment actually ended.
Exits handled on each employee's record.
WadataHR keeps queries, warnings, and exit letters on file per employee, with final pay calculated on the same record.
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