House Bill Proposes Six-Month Jail for Employers Delaying Salary Payments

In a move aimed at safeguarding workers’ rights, the House of Representatives has presented ‘The Employees Remuneration Protection Bill, 2023,’ a legislative proposal that could lead to jail time and financial penalties for employers failing to meet salary obligations.

The bill, championed by Wale Hammed, the House member representing the Agege Federal constituency in Lagos State, recently passed its first reading. According to Section 7(1) of the bill, any employer who “refuses or neglects to pay the remuneration of his employees” as stipulated under the Act could face legal consequences.

Section 8(1) empowers employees to submit a written claim if their compensation remains unpaid beyond the specified period. Failure to comply within five business days could lead to employees seeking legal redress through the court, as outlined in Section 9.

Under the proposed legislation, employers found guilty of salary non-payment may face three to six months of imprisonment without the possibility of a fine. Additionally, corporate entities failing to adhere to court orders regarding employee remuneration risk a daily fine of N10,000 or temporary closure for up to three months.

The bill imposes a N10,000 penalty on officers or agents who knowingly authorize noncompliance with the directive. Employers must provide written terms of employment to returning employees within fourteen working days for terms exceeding one month, outlining conditions, remuneration, payment methods, employment character, and termination procedures.

Section 27 ensures that employees filing petitions for remuneration will not face disciplinary actions. In the event of an employer’s bankruptcy, Section 28 prioritizes the payment of outstanding remuneration to employees.

The proposed legislation aims to strengthen the protection of workers’ rights and hold employers accountable for timely salary payments, promoting a fair and equitable work environment.