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The short answer
Under section 11 of Nigeria's Labour Act, the minimum notice to end a contract is one day for service of three months or less, one week for more than three months but under two years, two weeks for two to five years, and one month for five years or more; notice of a week or more must be in writing, and either party can accept pay in lieu. A contract can give more, and for managers and professionals outside the Act the contract governs; courts have also been divided on termination without reasons, so documenting a reason is the safer course.
Ending employment from London for someone in Lagos is uncomfortable for both sides, and mistakes in process cause most of the disputes. The notice period is the first thing to get right.
Statutory minimum notice
Section 11(2) of the Labour Act sets these minimums for workers it covers:
| Continuous service | Minimum notice |
|---|---|
| Three months or less | One day |
| More than three months, less than two years | One week |
| Two years, less than five years | Two weeks |
| Five years or more | One month |
Section 11(3) says notice of one week or more must be in writing. Section 11(6) allows either party to waive notice or accept payment in lieu, and section 11(9) says pay in lieu is calculated on money wages, excluding overtime and allowances. Your contract can, and often does, provide for longer notice; where it does, the contract applies.
Who the Act covers
Section 91 excludes people in administrative, executive, technical or professional roles from "worker". For a Lagos manager or engineer, notice comes from the contract. If the contract is silent, get advice before acting; do not assume the statutory table applies.
Do you need a reason?
A Templars note (June 2023) summarises a split. Supreme Court cases treat an employer as able to end a contract without giving reasons if it follows the contract. The National Industrial Court has in some cases required reasons, relying on its constitutional jurisdiction over unfair labour practice and international standards, for example in Aloysius v Diamond Bank (2015). The Court of Appeal in Oak Pensions v Olayinka (2017) held that unfair labour practice cannot override the contract, and the NICN in Attah v First Bank (2022) said ILO Convention 158 is unratified and not enforceable. In Biragbara v Unity Bank (2022) the NICN held "services no longer required" to be wrongful.
Given that split, the practical course is to give a genuine, documented reason, follow the contract and any staff handbook exactly, and keep the record.
Worked example
Example only. A Lagos customer support officer covered by the Act has three years' service and money wages of ₦400,000 a month (₦4,800,000 a year). Minimum notice is two weeks, in writing. If you pay in lieu, two weeks' money wages at ₦4,800,000 ÷ 52 = ₦92,307.69 a week comes to ₦184,615.38, excluding allowances under section 11(9). If the contract says one month's notice, pay in lieu is a month's pay instead. The weekly basis used here is an assumption; follow the contract's method if it sets one.
Steps from the UK
- Check the contract, handbook and any disciplinary procedure, and whether the employee is a Labour Act worker.
- Record the reason and the evidence for it.
- Hold the meeting, by video if needed, with a Lagos-based manager or HR present.
- Give written notice (required for a week or more) stating the last day, pay in lieu if any, and final pay.
- Pay final salary, accrued holiday and any contractual entitlements; remit final PAYE and pension.
- Recover equipment and close system access; handle the staff file under the NDPA (NDPA and staff data).
When the employee resigns
The notice rules in section 11 apply to either party, so a Lagos employee resigning owes the same minimum notice as you would, unless the contract says more. Section 11(6) lets you waive their notice or accept pay in lieu. If an employee leaves without notice, take advice before withholding pay: the deduction limits in section 5 still apply.
Common mistakes when managing from the UK
- Giving notice by WhatsApp voice note or a phone call alone, when a week or more must be in writing.
- Counting service from the date of a UK contractor arrangement rather than the Nigerian employment start date, or the reverse; check which date the contract uses.
- Applying the Labour Act table to a manager whose contract gives three months.
- Holding the conversation late in the Lagos working day because of UK time; the gap between the two shifts during the year (see scheduling across clock changes).
- Forgetting to tell the pension fund administrator and to stop future payroll.
- Leaving system access open after notice is given; agree the access cut-off time before the meeting.
Final pay
The last payroll for a leaver carries the usual deductions. Section 5(7) caps total deductions in a month at one-third of that month's wages, so recovering a large loan or advance from final pay may need a separate agreement. Include the final PAYE and pension remittances in your monthly close.
Where Pryme fits
Final pay and pay in lieu can be paid in naira through Pryme payroll, and you can generate a verifiable payment receipt with VerifyDoc.ai as proof of what was paid (verifiable receipts). See also notice and retention for Lagos staff.
Questions people ask
What is the minimum notice period in Nigeria?
Under section 11 of the Labour Act: one day up to three months' service, one week up to two years, two weeks up to five years, and one month after five years.
Can I pay in lieu of notice in Nigeria?
Yes. Section 11(6) allows payment in lieu, calculated on money wages excluding overtime and allowances under section 11(9).
Does notice have to be in writing?
Notice of one week or more must be in writing, under section 11(3).
Can I dismiss a Nigerian employee without giving a reason?
Supreme Court cases have allowed it where the contract is followed, but the National Industrial Court has required reasons in some cases, so documenting a reason is safer.
Sources
- Labour Act, Cap L1 LFN 2004 (PLAC) · accessed Oct 2026
- Templars ThoughtLab: Is termination of employment without reason still valid in Nigeria? (20 Jun 2023) · accessed Oct 2026
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