News

In new bill, House of Reps proposes 3-6 months jail term for employers delaying workers’ salaries

In a groundbreaking move, the House of Representatives is currently deliberating a transformative bill aimed at penalizing employers who neglect timely payment of workers’ salaries. The proposed legislation, known as the Employees Remuneration Protection Bill, emerges as a solution to combat the prevalent issue of delayed or unpaid wages across the nation. Sponsored by Wale Hammed, a representative from the Agege federal constituency of Lagos State, this bill signifies a pivotal step towards safeguarding workers’ rights.

The bill, having successfully passed its initial reading in Section 7 (1), emphatically declares the refusal or neglect by employers to pay employees’ remuneration as unlawful under this Act. Section 8 (1) further establishes that employees, faced with unpaid remuneration beyond the bill’s stipulated timeframe, are entitled to serve a written demand to claim their due entitlements. Should the employer persist in non-payment even after five working days following the demand, the employee is empowered to seek redress through court intervention.

The proposed legislation sternly prescribes a jail term ranging from three to six months, sans the option of a fine, for individual employers convicted of failing to pay their workers’ salaries. Corporate bodies failing to comply with a court order for salary payment would face a daily fine of N10,000, potential closure for a maximum of three months in case of prolonged default, or the committal of responsible officers or agents to a fine until compliance is achieved.

According to the bill’s stipulations, employers must furnish employees with written terms of employment for periods exceeding one month within 14 working days after the employee’s resumption. The employment contract, mutually signed by both parties, must encompass details such as the nature of employment, termination methods, remuneration, payment methods, and terms and conditions.

Section 27 of the proposed legislation explicitly safeguards employees, ensuring that their application to the court for remuneration payment cannot serve as grounds for any disciplinary action, query, suspension, or dismissal by the employer. This comprehensive legislation seeks to revolutionize the relationship between employers and employees, ensuring fair treatment, timely remuneration, and the protection of workers’ rights.