Employer Guide

End employment without ending up in court.

Notice periods, termination letters, redundancy rules, and resignation handling for Nigerian employers, in plain language.

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 serviceMinimum notice
3 months or less1 day
More than 3 months, less than 2 years1 week
2 years to less than 5 years2 weeks
5 years or more1 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.

[COMPANY LETTERHEAD]

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:

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.

If the employee holds company property, loans, or salary advances, reconcile them against final pay before the last day, within what the law allows on deductions.

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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