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Employment Agreement
I need a junior employment agreement for a graduate with 1 year of industry experience, who will engage in a rotational program to identify expertise aligning with their skills. The agreement should include statutory leave, exclude stock options, and specify a 6-month probation period with a 1-week notice, transitioning to a 1-month notice period thereafter.
What is an Employment Agreement?
An Employment Agreement is a binding contract between an employer and employee in Nigeria that spells out the key terms of their working relationship. It covers essential details like salary, work hours, duties, benefits, and leave entitlements - all aligned with Nigeria's Labour Act requirements.
Beyond meeting legal obligations, this agreement protects both parties by clearly defining workplace expectations, confidentiality rules, and grounds for termination. Most Nigerian companies use these agreements to establish clear professional boundaries and prevent future disputes, especially for roles involving sensitive information or significant responsibilities.
When should you use an Employment Agreement?
Use an Employment Agreement when hiring any new employee in Nigeria, especially for roles involving sensitive information, significant responsibilities, or specialized skills. This document becomes essential before the employee's first day to establish clear expectations and protect both parties legally.
Critical situations demanding immediate Employment Agreements include hiring senior executives, technical specialists, or employees with access to trade secrets. Nigerian labor laws require documenting specific terms of employment, making these agreements particularly important during company expansions, role transitions, or when bringing on remote workers where clear documentation of work arrangements is crucial.
What are the different types of Employment Agreement?
- General Employment Agreement: Standard comprehensive contract covering basic employment terms, suitable for most regular full-time positions in Nigerian companies
- Employee Undertaking Agreement: Focused specifically on employee commitments, confidentiality obligations, and professional conduct expectations
- Joint Employment Agreement: Used when an employee works for multiple related companies or departments, clarifying shared responsibilities and reporting structures
Who should typically use an Employment Agreement?
- Employers/Companies: Draft and propose Employment Agreements, ranging from small businesses to large corporations across Nigeria's business sectors
- Employees: Review, negotiate, and sign these agreements before starting work, from entry-level staff to senior executives
- HR Managers: Oversee the agreement process, ensure compliance with labor laws, and maintain proper documentation
- Legal Counsel: Review and customize agreements to protect company interests while ensuring compliance with Nigerian employment laws
- Labor Unions: May influence agreement terms through collective bargaining processes in unionized sectors
How do you write an Employment Agreement?
- Employee Details: Gather full name, contact information, position title, and start date
- Compensation Package: Document salary, bonuses, benefits, and payment schedule aligned with Nigerian labor standards
- Job Specifics: Define role responsibilities, working hours, location, and reporting structure
- Company Policies: Include references to relevant workplace policies, leave entitlements, and disciplinary procedures
- Legal Requirements: Ensure compliance with Nigeria's Labour Act regarding minimum wage, working hours, and leave rights
- Review Process: Use our platform to generate a legally-sound document, then review with relevant stakeholders before signing
What should be included in an Employment Agreement?
- Party Information: Full legal names and addresses of both employer and employee
- Job Details: Position title, duties, work location, and reporting structure
- Compensation Terms: Salary, payment schedule, bonuses, and benefits as per Nigerian Labor Act
- Working Hours: Regular hours, overtime provisions, and rest periods
- Leave Rights: Annual, sick, and maternity leave entitlements
- Termination Clauses: Notice periods, grounds for termination, and severance terms
- Confidentiality: Protection of company information and trade secrets
- Dispute Reֱ: Process for handling workplace conflicts under Nigerian law
What's the difference between an Employment Agreement and an Agency Agreement?
An Employment Agreement differs significantly from an Agency Agreement in several key aspects, though both involve professional relationships in Nigeria's business environment. While Employment Agreements establish direct employer-employee relationships, Agency Agreements create independent business partnerships.
- Control and Supervision: Employment Agreements grant employers direct control over work methods and schedules; Agency Agreements allow agents to operate independently
- Benefits and Protection: Employment Agreements must include statutory benefits under Nigerian Labour Law; Agency Agreements typically exclude such benefits
- Tax Treatment: Employment Agreements require employer PAYE deductions; Agency Agreements leave tax responsibilities to the agent
- Duration and Termination: Employment Agreements often have indefinite terms with notice periods; Agency Agreements usually specify fixed terms or project completion dates
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