Section 1-6 of the Nigerian Labour Act 2004
Section 1, 2, 3, 4, 5, 6 of the Nigerian Labour Act is under Part I (General Provisions as to protection of wages, contracts of employment and terms and conditions of employment) of the act, and collectively titled ‘Protection of wages‘.
Section 1 of the Labour Act 2004
Manner of payment
(1) Subject to this section-
(a) the wages of a worker shall in all contracts be made payable in legal tender and not otherwise; and
(b) if in any contract the whole or any part of the wages of a worker is made payable in any other manner the contract shall be illegal, null and void.
(2) An employer may provide food, a dwelling place or any other allowance or privilege as a part of a worker’s remuneration if the food, dwelling place, allowance or privilege is prescribed by law, by a collective agreement or by an arbitration award because it is customary or desirable in view of the nature of the industry or occupation
in which the worker is engaged; but in no case shall an employer give to any worker any intoxicating liquor or noxious drug by way of remuneration.
(3) Except where otherwise expressly permitted by this Act, wages payable in money shall be paid only in legal tender or, with the prior consent in writing of the worker concerned, by cheque or postal order and payment or purported payment in any other form shall be illegal, null and void.
Section 2 of the Labour Act 2004
Agreement as to place and manner of spending wages illegal
No employer shall impose in any contract for the employment of any worker any terms as to the place at which, or the manner in which, or the person with whom any wages paid to the worker are to be expended; and every contract between an employer and a worker containing any such terms shall be illegal, null and void.
Section 3 of the Labour Act 2004
Wages not to be paid on certain premises
Wages shall not be paid to a worker in premises used for the sale of intoxicating liquor or for the retail sale of goods, except in the case of a worker employed on the premises.
Section 4 of the Labour Act 2004
(1) No employer may make to a worker an advance of wages in excess of one month’s wages.
(2) Where an advance in respect of wages has been paid to a worker the minimum period for the recovery of the advance by the employer shall be three months.
(3) No advance in respect of wages shall be paid to a worker who is liable to repay any part of such an advance paid to him previously, except in cases of necessity as so approved by the employer.
(4) No employer shall make any deduction by way of discount, interest or any similar charge on account of any advance of wages paid to a worker in anticipation of the regular period of payment of the wages.
(5) The State Authority may by order declare that this section shall not apply to any particular kind of advance paid to any particular class of worker or to all workers.
Section 5 of the Labour Act 2004
Deductions (including deductions for overpayment of wages)
(1) Except where it is expressly permitted by this Act or any other law, no employer shall make any deduction or make any agreement or contract with a worker
for any deduction from the wages to be paid by the employer to the worker, or for any payment to the employer by the worker, for or in respect of any fines:
Provided that, with the prior consent in writing of an authorized labour officer, a reasonable deduction may be made in respect of injury or loss caused to the employer by the willful misconduct or neglect of the worker.
(2) An employer may with the consent of a worker make deductions from the wages of the worker and pay to the appropriate person any contributions to provident or pension funds or other schemes agreed to by the worker and approved by the State Authority.
(3) Upon the registration and recognition of any of the trade union specified in Part A of Schedule 3 to the Trade Unions Act, the employer shall-
(a) make deductions from the wages of all workers eligible to be members of the union for the purpose of paying contributions to the trade union so recognised; and
(b) pay any sum so deducted to the union,
but a worker may contract out of the system, in writing, and where he has done so, no deductions shall be made from his wages in respect of contributions mentioned in paragraph (a) of this section.
(4) No deductions shall be made from the wages and salaries of persons who are eligible members of any of the trade unions specified in Part B of the Schedule 3 to the Trade Unions Act except the person concerned has accepted, in writing, to make voluntary contributions to the trade union.
(5) Deductions may be made from the wages of a worker in respect of overpayment of wages, but only in respect of any such overpayment made during the three months immediately preceding the month in which the overpayment was discovered.
(6) An employer shall, when making a payment to a trade union under paragraph (b) of subsection (3) of this section, include with such payment a list of the employees from whom deductions were made pursuant to paragraph (c) of the said subsection.
(7) Notwithstanding any other provision of this Act, the total amount of deductions that may be made from the wages of a worker in any one month shall not exceed one-third of the wages of the worker for that month.
Section 6 of the Labour Act 2004
Authority of employer to open shop
(1) The Minister may, after consultation with the State Authority, give approval to an employer to establish a shop for the sale of provisions to his workers, but no worker shall be compelled by any contract or agreement, written or oral, to purchase provisions at any shop so established.
(2) No employer shall in any place of employment establish a shop for the sale of provisions to his workers (or permit such a shop to be established or kept) otherwise than in accordance with subsection (1) of this section.