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The short answer
Section 11 of the Labour Act sets minimum notice by length of service: one day for three months or less, one week from three months to under two years, two weeks from two to under five years, and one month for five years or more. Notice of a week or more must be in writing, either side may accept pay in lieu, and pay in lieu is calculated on money wages excluding overtime and allowances. A contract can give longer notice, and then the contract applies.
The statutory notice table
Section 11(2) of the Labour Act gives the minimum notice either party must give to end a contract of employment:
| Length of continuous employment | Minimum notice |
|---|---|
| Three months or less | One day |
| More than three months but less than two years | One week |
| Two years but less than five years | Two weeks |
| Five years or more | One month |
These are floors. If an offer letter says "one month's notice or salary in lieu" for someone with eight months' service, the employer must give one month, because the contract is more generous than the Act. A contract cannot give less than the table for a worker the Act covers.
The rules that come with the table
- Writing: any notice of one week or more must be in writing (section 11(3)). A WhatsApp voice note or a verbal "don't come back" does not meet that.
- Counting: the notice period excludes the day the notice is given (section 11(4)).
- Pay in lieu: either party may waive notice or accept a payment in lieu (section 11(6)).
- Final wages: all money wages must be paid on or before the notice expires (section 11(7)).
- Gross misconduct: nothing in section 11 removes the right to end a contract without notice for conduct that would justify it (section 11(5)). That right should be used carefully, with a fair process; see our planned guide on dismissing staff for theft.
Working out pay in lieu
Section 11(9) says that in calculating a payment in lieu of notice, only the part of wages received in money, "exclusive of overtime and other allowances", counts. For a typical Nigerian pay structure that means basic salary, not housing, transport or other allowances, unless the contract says otherwise.
- Weekly basic: ₦180,000 × 12 ÷ 52 = ₦41,538.46.
- Two weeks' pay in lieu under the Act: ₦41,538.46 × 2 = ₦83,076.92.
- If the contract instead promises "one month's gross salary in lieu", the contract applies: ₦240,000.
- Either way, wages already earned up to the last day, any pro-rata holiday pay, and pension and PAYE on what is paid must be settled too.
Who the table covers
The Labour Act applies to "workers". Its definition in section 91 leaves out people exercising administrative, executive, technical or professional functions, members of the employer's family and some others. For managers and professionals, the notice period comes from the contract and, where it is silent, from what a court considers reasonable. Check that your contracts state notice for every grade, and add it where they do not.
Probation and fixed-term contracts
During the first three months, the statutory minimum is one day, which is why many probation clauses in Nigeria provide for short notice. The contract can still give more, and a written probation clause should say how much. A fixed-term contract is different: section 7(1)(d) requires the written statement to give the date the contract expires, and the contract normally ends on that date without notice. Ending it early is a termination, so the notice rules, or the contract's own early-termination clause, apply. If a fixed-term employee simply keeps working after the end date, the arrangement may continue as an ordinary contract, and notice will then be needed to end it.
When notice cannot be given
Section 54(4) bars an employer from giving a woman notice of dismissal during her maternity absence, or notice that would expire during it. Plan any restructuring around that rule; see maternity leave rules.
Redundancy is a different process
Ending jobs because of an excess of staff is redundancy under section 20, and it has extra steps: inform the union or workers' representative of the reasons and extent, apply "last in, first out" subject to skill, ability and reliability, and use best endeavours to negotiate redundancy payments. Notice still applies on top. See redundancy pay under the Labour Act.
Steps for an employer ending a job
- Check the contract for the notice period and compare it with the Labour Act table; use whichever is longer.
- Decide whether the employee will work the notice or receive pay in lieu.
- Give notice in writing, dated, stating the last working day.
- Prepare the final pay: wages to the last day, notice pay if in lieu, pro-rata leave under section 18(4), and any contractual items.
- Deduct PAYE and pension on taxable pay and remit as usual.
- Collect company property and give the employee their documents and a statement of final pay.
If the employee is resigning rather than being let go, the same table applies to the notice they must give; see resignation notice and final pay.
Where Pryme fits
Pryme payroll can run an off-cycle final payment, and a verifiable receipt of it, through Pryme's partnership with VerifyDoc.ai, gives both sides a record that cannot be quietly altered later.
Questions people ask
What is the notice period for termination in Nigeria?
Under section 11 of the Labour Act: one day for up to three months' service, one week up to two years, two weeks up to five years, and one month for five years or more. Your contract may give longer.
Does notice have to be in writing in Nigeria?
Yes, any notice of one week or more must be in writing under section 11(3) of the Labour Act.
How is salary in lieu of notice calculated?
The Labour Act counts only money wages, excluding overtime and other allowances. If your contract promises gross salary in lieu, the contract applies.
Can my employer sack me without notice?
Only for conduct serious enough to justify summary dismissal, which section 11(5) preserves. Otherwise notice, or pay in lieu, is required.
Sources
- Labour Act, Cap. L1, Laws of the Federation of Nigeria 2004 (PLAC text) · accessed Oct 2026
- Mondaq (Resolution Law Firm): Overview of employment laws in Nigeria, manpower policy and regulations (25 Jan 2021) · accessed Oct 2026
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