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
A staff handbook sets out the rules that apply to everyone, while each employment contract sets out one person's pay, role and notice. The Labour Act lets the written statement of terms refer to another reasonably accessible document, so a contract that names the handbook can bring its policies in. Keep statutory minimums (sick pay, annual holiday, maternity) at or above the Act.
Why a small business needs one
With five or ten staff, rules tend to live in the owner's head. That works until two cashiers are treated differently over the same shortage, or a supervisor approves leave the owner did not know about. A handbook writes the house rules down once, so every new hire gets the same answer and every disciplinary decision can point to a rule the person had seen.
Section 7 of the Labour Act requires an employer to give a worker a written statement of key terms within three months of starting, covering pay, hours, holidays, sick pay and notice. The Act allows that statement to refer the worker to another document that is reasonably accessible. That is the legal link: the contract states the individual terms and says the handbook applies; the handbook holds the shared policies. Section 7 also requires changes to be notified in writing within one month.
The handbook outline
Copy the headings and fill each section in plain language. Twelve to twenty pages is enough for most shops, salons, schools and eateries.
- Welcome and how to use this handbook. Who the business is, that the handbook forms part of each contract where the contract says so, and where staff can read the current copy.
- Working hours and breaks. Opening hours, shift pattern, lateness rules, and how overtime is approved and paid. The Act (s.13) leaves normal hours to agreement and requires a rest interval of at least one hour where the day runs six hours or more, and one rest day of 24 hours in every seven.
- Pay. Pay day, method (bank transfer), how deductions are made and the cap on them, and who to ask about payslips.
- Annual leave. How much, how to request it and blackout periods. Not less than the statutory minimum of six working days after twelve months' continuous service (s.18).
- Sick leave. How to report sickness, the medical certificate needed, and paid sick days of not less than the statutory twelve working days a year (s.16).
- Maternity and family leave. At least the s.54 position: six weeks before and six weeks after confinement, with at least half pay for a worker with six months' service. Say what, if anything, the business adds, such as paternity leave.
- Conduct. Dress, phone use on the floor, treatment of customers and colleagues, alcohol and drugs, conflicts of interest, gifts from suppliers.
- Cash and stock handling. See the section below.
- Customer data and confidentiality. Who may see customer details, no photos of customer IDs on personal phones, how long records are kept.
- Health and safety. First aid, fire exits, reporting injuries.
- Discipline. Offences, the query and hearing process, warnings and outcomes.
- Grievances. How a staff member raises a complaint and who hears it.
- Leaving. Notice periods (by reference to the contract and the Act), return of property and final pay.
- Acknowledgement. A signed page confirming the person received and read the handbook.
The cash-handling policy most shops get wrong
Cash rules belong in the handbook in detail, because they are where most disputes start. A workable policy says:
- Each cashier has their own till or float, counted with a supervisor at the start and end of shift and signed by both.
- No staff member accepts a transfer to a personal account for a business sale. Customers pay into the business account only.
- Shortages are recorded on the day, with the cashier's written explanation.
- Shortages are not deducted from wages automatically. The Labour Act (s.5(1), as published) allows a deduction for loss caused by wilful misconduct or neglect only with prior written consent of an authorised labour officer, and caps all deductions in a month at one-third of that month's wages (s.5(7)).
- Repeated unexplained shortages are a disciplinary matter handled under the discipline section.
Discipline: write a fair process and follow it
A handbook should describe the steps before any serious sanction: a written query stating the allegation, time to respond, a meeting where the staff member can explain, and a written outcome. In Onitiju v Lekki Concession Co. Ltd, the National Industrial Court declared a dismissal wrongful where the employee said he was never confronted with the allegations, and ordered one month's salary in lieu of notice plus costs, according to the court's own news report of 11 December 2018. A written process you actually follow is the best protection. Our warning letter template and termination letter template sit at the end of that process.
Linking the handbook to each contract
Put one clause in every contract, for example:
Then keep proof: a signed acknowledgement page for each staff member, a version number and date on the cover, and a record of when changes were shared. A handbook nobody signed is hard to rely on later. See our employment contract template for the clauses that sit on the contract side.
Where Pryme fits
A Pryme Business Account comes with a Chief of Staff agent that can prepare a draft handbook section or track who has not yet signed the acknowledgement, and payroll that pays wages by transfer with a record of each payment. Agents prepare; a person approves anything above a set ceiling.
Questions people ask
Is a staff handbook compulsory in Nigeria?
No statute requires a handbook. The Labour Act requires a written statement of key terms within three months of starting, and that statement may refer to another accessible document, which is where a handbook helps.
Can I change the handbook without asking staff?
Section 7 requires changes to the written terms to be notified in writing within one month. Changes that cut pay or leave can be challenged; consult staff and take advice before cutting entitlements.
Can I deduct cash shortages from salary?
Not on your own decision. The Labour Act allows deductions for loss through wilful misconduct or neglect only with prior written consent of an authorised labour officer, and caps monthly deductions at one-third of wages.
Does the handbook apply to managers?
If their contract says so, yes. Note that the Labour Act's definition of "worker" excludes administrative, executive, technical and professional roles, so managers rely more on their contracts.
Sources
- Labour Act, Cap L1 LFN 2004 (PLAC Laws of Nigeria) · accessed Oct 2026
- Labour Act full text (theiguides copy) · accessed Oct 2026
- NICN news: Onitiju v Lekki Concession Co. Ltd, judgment of 11 Dec 2018 · 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.