AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
The Labour Act defines a domestic servant as a house, stable or garden servant of a private home, including a private driver, but its general definition of "worker" leaves out people employed otherwise than for the employer's business, so how far its protections reach domestic staff is not settled. The safest course is to give a written agreement covering pay, hours, leave (at least six working days after a year), sick pay (up to 12 days) and notice, and never to employ a child under 12.
Is a house help covered by the Labour Act?
This is the question most households never ask, and the answer is less clear than people assume. The Labour Act, Cap. L1, does two things that pull in different directions:
- Section 91 defines a domestic servant as "any house, stable or garden servant employed in or in connection with the domestic services of any private dwelling house", and includes "a servant employed as the driver of a privately owned or privately used motor car". Section 65 lets the Minister make regulations on the engagement, housing and conditions of domestic servants.
- The same section defines a worker, the person most of Part I protects, and excludes "any person employed otherwise than for the purposes of the employer's business". A cook or nanny in a private home is not employed for a business.
So the Act recognises domestic staff as a category but does not plainly extend its general wage, leave and notice rules to them. SCP Law's reading of the National Minimum Wage Act also lists domestic workers among those exempt from the minimum wage. A driver employed by your company to drive staff is different: that person works for the business and is a worker in the ordinary sense.
None of this means anything goes. Contract law applies to every employment, and a court will hold you to what you agreed. The practical answer is to agree terms that would meet the Labour Act standard anyway, so the question never matters.
What to put in writing
Use section 7 of the Labour Act as your template. It lists what a worker's written statement must contain, and every item is useful in a household:
- Your name and address, and the employee's name, address and start date.
- The job: driver, nanny, cook, cleaner, gardener, or a combination.
- Pay: the amount, how often it is paid (the Act's rule for workers is no less often than monthly) and how (bank transfer is easiest to prove). Say whether accommodation or meals are part of the pay or extra to it.
- Hours and days off. Live-in staff in particular need a clear rest day.
- Annual leave and holiday pay.
- Sick pay and what happens if they cannot work.
- Notice either side must give.
- Any special terms: accommodation, feeding, phone, uniform, a trial period.
Leave, sick pay and notice: the Labour Act benchmark
| Item | Labour Act standard for workers |
|---|---|
| Annual leave | At least 6 working days with full pay after 12 months' continuous service (12 for under-16s), section 18 |
| Sick pay | Up to 12 working days' wages a year with a doctor's certificate, section 16 |
| Notice | 1 day (up to 3 months' service), 1 week (to 2 years), 2 weeks (2 to 5 years), 1 month (5+ years), section 11 |
| Maternity | Leave six weeks before and after birth, at least 50% pay after six months' service, section 54 |
Offering these terms costs a household little and avoids the most common disputes. Our guides on notice periods and maternity leave explain them in full.
Young workers: the hard lines
Section 59 of the Labour Act says no child, meaning a person under 12, may be employed at all, except by a family member on light domestic or agricultural work approved by the Minister. Young persons under 16 may not be employed where they cannot return each day to a parent or guardian, unless an authorised labour officer approves and there is a written contract. State laws may add further protections, so check yours. If the person you are considering looks underage, do not employ them.
Paying fairly: an example
- Six working days' leave on full pay costs you nothing extra in wages; you simply pay her normal ₦90,000 that month.
- If she leaves after eight months without taking leave, the Labour Act formula for workers gives a pro-rata payment: 8/12 of one week's pay. One week's pay is ₦90,000 × 12 ÷ 52 = ₦20,769; 8/12 of that is ₦13,846.
- If you end the job after 18 months, the benchmark notice is one week, in writing.
Records worth keeping
Keep a copy of the signed agreement, a photo of the person's ID and NIN, a reference or guarantor letter if you asked for one, and bank records of every salary payment. Paying by transfer rather than cash gives both sides proof.
Where Pryme fits
A Pryme Personal Account can set up the monthly salary as a transfer through Send. The Personal Assistant can remind you of pay day and prepare the payment, but nothing moves until you approve it. A verifiable receipt of each payment, through Pryme's partnership with VerifyDoc.ai, gives both of you a record anyone can check.
Questions people ask
Does the Labour Act cover house helps in Nigeria?
Only partly. It defines domestic servants and lets the Minister regulate them, but its general definition of worker excludes people not employed for the employer's business. Agree written terms at least as good as the Act's standards.
How much should I pay a house help or nanny in Nigeria?
There is no fixed legal rate, and SCP Law lists domestic workers as exempt from the minimum wage. Agree a written monthly amount and pay it on time.
Do I need a contract for my driver?
A written agreement protects both of you. If the driver is employed by your company for business use, they are a worker under the Labour Act and should have a written statement of terms within three months.
Can I employ a 14-year-old as a house help?
The Labour Act restricts it heavily: under-16s may not be employed where they cannot return home daily without a labour officer's approval and a written contract, and children under 12 may not be employed at all except by family. State child rights laws may be stricter.
Sources
- Labour Act, Cap. L1, Laws of the Federation of Nigeria 2004 (PLAC text) · accessed Oct 2026
- SCP Law: The 2024 Minimum Wage Act, a closer look (31 Jul 2024) · accessed Oct 2026
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