A bill to prohibit late payment of salaries, pensions and other emoluments of workers, yesterday, passed the second reading in the House of Representatives.
Sponsored by the Speaker of the House, Femi Gbajabiamila, the bill is titled: “A Bill for an Act to prohibit late payment of Workers’ Wages, Pension and Other Emolument in Nigeria and Prescribes penalties for Violation; and Related Matters.”
The bill also proposes fines and punishment for delays in payment of salaries or breaches of contracts by employers, who risk one-month imprisonment for any employer that owes salaries for more than 60 days.
For example, an employer, who delays payment of salaries for duration of one to seven days, will be liable to pay 10% of one month’s pay to the employee; for eight to 30 days (20%); 30 to 60 days (30%); and 60 days/above (30%) plus improvement for one month.
The bill also proposes fines and punishment for delays in payment of salaries or breaches of contracts by employers, who risk one-month imprisonment for any employer that owes salaries for more than 60 days.
In other provisions, Section 2 of the bill provides that “Every employer of labour in Nigeria, whether private or public, and whether it is employing any worker on permanent or contract basis must ensure that all payment of wages, salaries, pension and all benefits to workers are paid promptly without delay weekly, fortnightly, monthly, quarterly or yearly as may be agreed by parties in the contract of employment of the additional individuals.”
Section 3 (1a, b, c) further prohibits employers from making arbitrary deductions from the wages or pension of workers unless expressly provided in the contract of engagement.
“The terms of the contract contained in a notice kept constantly affixed at such place or places open to the workman and in such a position that it should be seen easily read and copied by any person whom it affects or the contract is in writing signed by the workman unless the deduction or payment to be made under the contract does not exceed the actual or estimated damage or loss occasioned to the employer by the proven Act or omission of the workman or of some other person over whom he has control or for whom he has by the contract agreed to be responsible.”
Section 4 provides that “an employer shall not hold on to the salary, wage, pension or any other benefit and emolument of any workman for a period of seven days and above from the day the payment of such salary, wage, pension, and any other benefit and emolument falls due save in the event of any force majeure.”
When passed into law, the legislation will provide compensation for employees and improve the general welfare conditions of workers in Nigeria.
Having scaled the second reading, the bill was referred straight to the Committee of the Whole for consideration.
