Employment Agreement

The Employment Agreement (also known as Employment Contract) is a document by which an employer and an employee define their roles and obligations at the beginning of an employment relationship.

In Nigeria, an employment contract must be given to the worker within three months of commencement of employment.

Employment relationships often begin with an Offer Letter which outlines certain terms of employment. However, an Employment Agreement is a more elaborate document as it allows parties to provide very detailed information about the employment. It creates no doubt or questions about what is expected of each party as it defines all the responsibilities and sets out all the terms and conditions as agreed by both parties.

The Employment Contract will include information such as:

• the particulars of the parties (full names and addresses of the employer and employee);
• the type of employment (full-time, part-time, permanent, temporary...);
• the duration of employment;
• the job position or designation of the employee;
• the duties of the employee;
• compensation;
• bonuses and other benefits like health insurance, pension, annual leaves, etc.

In addition, it is possible to include optional and specific terms, such as a non-compete clause (which restrains the employee from working with a competitor of the employer) and a confidentiality clause (which prevents the employee from using confidential information during and after the employee ceases to work for the employer).

How to use this document

After completing the form, the document should be printed and signed by both parties. Alternatively, this document can be signed electronically by both parties.

After the parties have signed, the document must be witnessed by two persons. The two witnesses are required to hand fill in their names, addresses, and occupations and also sign the document.

Each party keeps one original copy of this document for record purposes.

Once parties have signed the contract, it becomes a binding contract. That is, if a party violates a fundamental term of the contract, the other party will be entitled to remedies under the law.

Applicable Law

Employment and employment agreements are subject to Federal laws as issues relating to employment and labour matters in Nigeria are within the exclusive purview of the federal legislature. The Federal laws applicable to this agreement include:

• Labour Act, 2004.
• The Constitution of the Federal Republic of Nigeria, 1999 (as amended).
• Employees' Compensation Act, 2010.
• Factories Act, 2004.
• National Health Insurance Scheme Act, 2004.
• Personal Income Tax (Amendment Act), 2011.
• Trade Disputes Act, 2004.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.