Defaulting employers risk N1m fine as senate seeks stiffer penalties for labour offences
A bill seeking to fine employers as high as N1 million for labour offences has passed second reading at the senate.
In total, the bill is seeking to amend 11 sections of the labour act of 2004. The current penalties in the 11 sections range between N100 and N800.
The upper legislative chamber passed the bill on Tuesday after Ezenwa Onyewuchi, senator representing Imo east, moved a motion and led a debate on it.
While leading the debate, Onyewuchi said the fines in the current labour law are obsolete and would not be able to protect workers.
“The present fines for offenses in the Nigerian labour act are obsolete in context and content,” the legislator said.
“The sanction, penalty and interest payable under the act are ridiculously low and do not reflect current economic realities. These current provisions cannot provide the needed protection for workers in the labour market.
“There is therefore a need to review these penalties/fines upwards in order to achieve fair and harmonious employee relations.”
Also speaking, Sabi Abdullahi, senate deputy whip, said the amendment is “timely”.
“I want to lend my support to this very critical amendment in the Labour Act. I feel this amendment is very timely,” Abdullahi said.
Below are the sections of the labour act the bill is seeking to amend and the new fines.
|
SECTION |
OFFENCE |
OLD FINE |
PROPOSED FINE |
|
21 |
Breach of terms and conditions of employment as it relates to the wage hour, nature of employment, leave, contracts of employment among others |
N800 for first offence, N1500 for second or subsequent offences |
N500,000 and N1,000,000 |
|
46 |
Neglect or ill treatment of workers by employers |
N500 |
N500,000 |
|
47 |
Recruitment of employees without an employee’s permit or recruiters license |
N200 for first offence, N2,000 for second or subsequent offences |
N500,000 and N1,000,000 |
|
53 |
Inducement of apprentice to leave service of employment |
N500 for first offence, N200 for second or subsequent offences |
N300,000 and N200,000 |
|
58 |
Denial of maternity protection and employment of women in underground work or mines |
N200 for first offence, N100 for second or subsequent offences |
N200,000 and N100,000 |
|
64 |
Employment of young persons in unreasonable circumstances e.g industries |
N100 |
N200,000 |
|
67 and 68 |
Breach of regulations of the Minister as they relate to Labour health areas and registration of employers |
N1,500 |
N250,000 |
|
72 |
Offences committed by persons with intent to deceive in the employment of labour) |
N1000 for first offence, N500 for second or subsequent offences |
N300,000 and N200,000 |
|
74 |
Breach of regulations made by the Minister with respect to Labour required in emergencies and for communal obligations |
N200 for first offence, N10 for second or subsequent offences |
N30,000 and N10,000 |
|
75 and 76 |
Contravention of records of wages and conditions of employment; returns and statistics of employees |
N200 |
N300,000 |
|
85 and 88 |
Costs in court and fines for regulations made by the minister |
N50 for first offence, N500 for second or subsequent offences |
N50,000 and N500,000 |
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