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The short answer
Write the contract to satisfy Nigerian law first, because the employee works in Nigeria: the Labour Act (s.7) requires written particulars, including pay, hours, holidays, sick pay and notice, within three months of the start date. You can choose Irish law to govern the contract, but that does not switch off Nigerian payroll duties such as PAYE, which PwC says employers remit by the 10th of the following month. Take advice from a lawyer in each country before signing.
Start with where the work is done
An Irish company that hires a person who lives in Lagos or Abuja and works from there is, in practical terms, employing someone in Nigeria. The contract can be signed in Dublin, priced in euro and written on Irish letterhead, but the employee's day-to-day work, tax residence and statutory protections sit in Nigeria. That is the starting point for every clause.
Two questions get mixed up here and are worth separating:
- Governing law: which country's law the parties choose to interpret the contract and settle disputes.
- Mandatory local rules: the statutory duties of an employer and the rights of a worker where the work takes place, which a choice-of-law clause may not displace.
- Tax and payroll: who must deduct income tax and pension, and where. This follows the tax rules, not the contract wording.
Whether an Irish court or a Nigerian court would apply Irish law to someone working only in Nigeria, and how far either would let the chosen law reduce local protections, is a legal question this article does not settle. Ask an Irish employment solicitor and a Nigerian labour lawyer together; the cost is small next to a dispute fought in two jurisdictions.
What Nigerian law expects in writing
WageIndicator's Nigeria summary of the Labour Act (updated 15 March 2025) sets out section 7: a written contract must be given to the worker within three months of the start of employment, and it must state:
- the employer's name and undertaking;
- the worker's name and address;
- the place and date of engagement;
- the nature of the job;
- the end date, if the contract is for a fixed term;
- the notice period;
- pay, how it is calculated and how often it is paid;
- working hours, holidays and holiday pay;
- incapacity through sickness and sick pay;
- any special conditions.
The same summary says changes to these particulars must be notified to the worker within a month, that the law neither sets nor bans a probation period (three to six months is common practice), and that there are no special statutory rules for fixed-term contracts. It also notes the Act does not apply to some public servants and to crew on vessels and aircraft. Read the Act itself, or have your Nigerian lawyer confirm, whether the role you are hiring falls within its definition of a worker; many contracts follow section 7 anyway as good practice.
Clauses an Irish employer should add
| Clause | What to write | Why it matters |
|---|---|---|
| Governing law and forum | The chosen law and the courts or arbitration that hear disputes | Avoids an argument about jurisdiction before any argument about substance |
| Pay currency and date | Currency (naira, euro or dollars), gross amount, pay date, who bears transfer costs | PAYE is calculated in naira at the CBN rate on payment, per DLA Piper (28 Aug 2026) |
| Tax and deductions | That the employer will deduct and remit Nigerian PAYE and pension where required | PwC says PAYE is remitted by the 10th of the following month and the annual return is due 31 January |
| Place of work | Home address or co-working space in Nigeria; no authority to sign contracts for the company | Limits the risk of a taxable presence; see our note on permanent establishment |
| Data and confidentiality | Access to Irish customer data, security rules, return of devices | GDPR follows the Irish company; see our GDPR note |
| Equipment and expenses | Laptop, internet allowance, power backup costs | Common source of disputes when not written down |
| Termination | Notice each way, summary dismissal for serious misconduct, final pay | WageIndicator notes serious misconduct can justify termination without notice |
On tax: PwC's Nigeria pages (reviewed 29 May 2026) treat an individual as resident if, among other tests, they have a permanent home available in Nigeria or spend 183 days or more there in a 12-month period, and residents are taxed on worldwide income. An employee living in Nigeria will almost always be Nigerian tax resident, so Nigerian PAYE applies to the salary. How an Irish company with no Nigerian entity registers to run PAYE is a step to confirm with the relevant state tax authority, or to hand to a local payroll provider or an employer of record. See Nigerian PAYE for staff hired by an Irish company and using an employer of record.
Employee or contractor: decide before you draft
Many Irish firms start with a consultancy agreement instead. That is lawful where the person runs their own business, sets their own hours, uses their own tools and can work for others. If you control hours, provide equipment, set leave and integrate the person into your team, you have an employee in substance, whatever the paper says. Our guide to hiring a Nigerian contractor or employee from Ireland walks through the trade-offs.
What to check first
- Confirm the person will work only in Nigeria, and for how long.
- Decide employee or contractor, and whether you will employ directly or through an employer of record.
- List the section 7 particulars and put each one in the contract.
- Agree the pay currency and how the cost of each transfer is shared.
- Set up PAYE and pension handling before the first pay date.
- Have both an Irish and a Nigerian lawyer review the governing law and termination clauses.
Where Pryme fits
Once the contract is signed, a Pryme Business Account holds euro and naira in one place, so you can pay a Lagos salary in the currency the contract states. Payroll prepares the run and a person approves it; the app shows the rate and the fee before you approve each payment.
Questions people ask
Does a Nigerian employee working remotely for an Irish company need a written contract?
Under the Labour Act, as summarised by WageIndicator, written particulars must be given within three months of the start date. Irish employers usually issue a full contract on day one.
Can the contract say Irish law applies?
Yes, you can choose Irish law. Whether that choice overrides Nigerian protections for someone working in Nigeria is a question for lawyers in both countries.
Who pays Nigerian tax on the salary?
The employee is usually Nigerian tax resident, and Nigerian PAYE applies. The employer deducts and remits it; PwC says remittance is due by the 10th of the following month.
Can I pay a Nigerian employee in euro?
The contract can set any currency. DLA Piper notes PAYE is calculated in naira at the CBN rate on the payment date.
Sources
- WageIndicator Nigeria: Contracts and dismissals (updated 15 Mar 2025) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual tax administration (reviewed 29 May 2026) · accessed Oct 2026
- DLA Piper Africa: FAQs on payroll taxes and employer liability in Nigeria (28 Aug 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual residence (reviewed 29 May 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.