Employment contract in Nigeria: Template, Key Clauses and Local Law (2026)

What is an employment contract in Nigeria, and what does the law require? An employment contract in Nigeria is the agreement between an employer and an employee that sets out the job, the pay and the terms of the working relationship. Two legal regimes sit side by side. The Labour Act (Cap L1, Laws of the Federation of Nigeria 2004) protects "workers", broadly those doing manual labour or clerical work, and sets minimum terms for them. Employees above that line, such as managers and professionals, are governed mainly by their written contract and the common law, together with statutes that apply to everyone, including pensions, tax and compensation law. The Labour Act requires an employer to give a worker a written statement of the main terms within three months of the start of employment. The statement should cover the nature of the employment, wages and how they are calculated, the notice needed to end the contract, and the terms on hours, holidays and pay during sickness. On top of the contract, several statutes apply. The Pension Reform Act 2014 sets up a contributory pension scheme, with a common split of a minimum of 10 percent of monthly emoluments from the employer and 8 percent from the employee, typically for employers with a qualifying number of staff. The National Minimum Wage (Amendment) Act 2024 raised the national minimum wage to 70,000 naira per month and shortened the review cycle. The Employee's Compensation Act 2010 covers workplace injury, and employers deduct and remit PAYE income tax. This article is general information, not legal advice. Employment law changes and coverage depends on the role, so confirm the current position with Nigerian employment counsel or the Federal Ministry of Labour and Employment. Last verified October 2026. ## A Nigeria employment contract template you can copy ```

CONTRACT OF EMPLOYMENT This Contract is made on [DATE] BETWEEN: [COMPANY NAME], RC [number], of [address] ("Employer") AND [EMPLOYEE NAME], of [address] ("Employee") 1. POSITION AND DUTIES The Employer employs the Employee as [JOB TITLE], reporting to [ROLE], with the duties set out in [the job description / Schedule 1]. 2. COMMENCEMENT AND PROBATION Employment begins on [START DATE]. The first [N] months are a probation period, during which either party may end the contract on [N] days written notice. 3. PLACE AND HOURS OF WORK The normal place of work is [location]. Normal hours are [hours] per week. [State overtime and rest day arrangements.] 4. REMUNERATION The Employer pays a [monthly] salary of [amount] naira, by [method], on or before the [N]th of each month, subject to PAYE tax and lawful deductions. [Allowances, bonus and benefits.] 5. PENSION The Employer will remit pension contributions under the Pension Reform Act 2014 to the Employee's chosen Pension Fund Administrator, at the statutory minimum rates, where the Act applies. 6. LEAVE Annual leave: [N] working days of paid leave after 12 months of service (at least the statutory minimum). Sick leave, public holidays and any maternity or other leave apply as the law and policy provide. 7. CONFIDENTIALITY The Employee will keep the Employer's confidential information secret during and after employment and use it only for the Employer's business. 8. INTELLECTUAL PROPERTY Work the Employee creates in the course of employment belongs to the Employer, and the Employee assigns such rights to the Employer. 9. TERMINATION AND NOTICE After probation, either party may end the contract on [N] [weeks / months] written notice, or payment in lieu. The notice must be at least the statutory minimum for the length of service. The Employer may dismiss summarily for gross misconduct. 10. RESTRICTIVE COVENANTS [Non-solicitation of clients and staff for [N] months after employment. Any restraint must be reasonable to be enforceable.] 11. DISCIPLINE AND GRIEVANCE The Employer's disciplinary and grievance procedures apply, as set out in [the handbook]. 12. GOVERNING LAW This Contract is governed by the laws of the Federal Republic of Nigeria. Signed: For the Employer: __________ Employee: __________ Name / designation / date Name / date

- **Probation and notice (clauses 2 and 9).** Set the probation length and the notice during it. After probation, the Labour Act sets minimum notice that rises with length of service for covered workers, so the contractual notice should meet or exceed that floor.
- **Remuneration and minimum wage (clause 4).** Pay must not fall below the national minimum wage, which the 2024 amendment set at 70,000 naira per month. Record how often the salary is paid and that PAYE is deducted.
- **Pension (clause 5).** Where the Pension Reform Act 2014 applies, the employer and employee both contribute, commonly a minimum of 10 percent from the employer and 8 percent from the employee of monthly emoluments, remitted to the employee's Pension Fund Administrator. Confirm whether your headcount brings you within the scheme.
- **Leave (clause 6).** The Labour Act sets a statutory minimum of paid annual leave after twelve months of service. Most employers offer more. State the figure and the rules on carry-over.
- **Restrictive covenants (clause 10).** A non-compete or non-solicit must be reasonable in scope, time and area to be enforced. A blanket ban on working in the industry is likely to fail. ## Common mistakes to avoid - **No written terms within three months.** For covered workers this breaches the Labour Act. Issue the contract at the start.
- **Paying below the national minimum wage.** The 2024 figure is 70,000 naira per month. Certain small employers and categories are treated differently, so confirm whether an exemption applies before assuming one.
- **Ignoring pension and compensation duties.** Pension remittance under the 2014 Act and cover under the Employee's Compensation Act 2010 are statutory, not optional, where they apply.
- **Confusing Labour Act workers with other employees.** The minimum notice and other protections in the Labour Act apply to "workers". The terms for managers and professionals rest more on the contract. Draft for the right category.
- **An unreasonable non-compete.** Overbroad restraints are hard to enforce. Keep them narrow and tied to a genuine interest. ## A note on jurisdiction and current law Nigerian employment is a mix of the Labour Act for covered workers, the common law and the contract for others, and statutes that apply across the board on pensions, tax, compensation and social security. The figures move: the minimum wage changed in 2024 and pension rules have thresholds. Because coverage and the current numbers turn on the role and the employer, confirm the position with Nigerian employment counsel or the relevant authority before you rely on a clause. Adira is built around Indian corporate law first and is architected to expand. Deeper, verified Nigerian employment coverage is on the roadmap rather than live today, so treat this template as a sound starting point and have local counsel check anything sensitive. ## Where a contract workspace helps Hiring is repetitive, and that is where mistakes creep in. Every offer needs the same spine, the right notice for the role, the correct pension and minimum wage position, the leave figure, and a signed copy stored where you can find it. The work that outlasts drafting one contract is keeping that spine consistent across every hire and tracking the dates, such as probation end and renewals. Keeping the drafting, review and signed versions in one AI workspace tuned to how your company hires means the notice, pension and leave terms stay consistent across every Nigerian contract, with edits made in plain language. [Adira](https://adiralaw.com) is one workspace built to work this way. This template alone is enough to put a fair Nigerian employment contract in place. *This article is general information, not legal advice. Coverage, notice, pay and pension rules depend on the role and change over time, so have qualified Nigerian counsel review anything important. Last verified October 2026.*