The House of Representatives has proposed a bill to criminalize failure to pay salaries by employers of labor and corporate bodies across the country.
The bill was sponsored by Wale Hammed, a member representing the Agege Federal Constituency, Lagos State.
When the bill titled ‘The Employees Remuneration Protection Bill, 2023,’ comes into effect, employees can demand payment from their employer by submitting a written claim.
The bill has passed its first reading and it is meant to give the relationship between employers and employees a new direction.
Section 7(1) of the bill provides that it is unlawful for any employer to “refuse or neglect to pay the remuneration of his employees, as provided under this Act.”
Section 8(1) of the bill states that if an employee’s compensation remains unpaid beyond the specified period permitted by this legislation, the employee may submit a written demand to their employer for the payment of their entitlement if they wish to assert their claim.
The bill added that employers found guilty of failing to pay the salaries of their workers risk three to six months of imprisonment without the possibility of a fine.
However, any corporate entity that fails to adhere to a court order regarding the remuneration of its employees risks a fine of N10,000 daily or “being sealed off for a period not exceeding three months, provided that the default extends beyond two months.”
The bill also imposes an N10,000 penalty on any officer or agent of the organization, government parastatal, agency, body, or institution who deliberately or knowingly authorizes or permits the default or noncompliance with the directive until it is complied with.
Employers must provide written terms of employment to resuming employees within 14 working days of the employee’s return to work for terms of employment exceeding one month.
Section 28 of the bill states that in the event of an employer’s bankruptcy, priority shall be given to the payment of all outstanding remuneration to employees.