Labour law reforms: A call to action

BY SAMUEL JEKELI

Nigeria’s constitution is the supreme law of the land, designed to regulate governance, protect citizens’ rights, and ensure social justice. However, its provisions on labour-related issues, particularly sanctions and fines for violations, are outdated and misaligned with present economic realities. This has failed to deter violations and instead encouraged corruption and exploitation in the workplace. To ensure fairness and accountability, Nigeria must urgently review its constitution and labour laws to reflect current economic conditions.

Many fines imposed for labour law breaches are too insignificant to serve as deterrents. Employers who engage in unfair labour practices, wage theft, wrongful termination, and unsafe working conditions often escape with minimal financial consequences.

For instance, penalties for non-compliance with the National Minimum Wage Act are too low compared to inflation rates and the rising cost of living. This has led to widespread non-compliance, leaving workers vulnerable to exploitation. Employers who realise they can underpay employees without serious consequences continue to do so, making wage violations common.

Similarly, the Factories Act, which governs workplace safety and employee welfare, prescribes fines that are often just a few hundred naira for serious breaches. This has made it cheaper for some employers to ignore safety regulations and pay the fine rather than invest in safer working environments.

The tragic result is an increase in workplace accidents, injuries, and even deaths. Employees in hazardous sectors such as construction and manufacturing often lack proper protective gear and safety measures. When accidents occur, instead of taking responsibility, some employers exploit legal loopholes, while affected workers are left without adequate compensation.

The failure to adjust these fines in line with economic realities has also encouraged corruption. Employers who violate labour laws often settle cases informally, knowing that legal penalties are too weak to pose any real financial burden. In some instances, enforcement officers are bribed to overlook violations, further weakening the justice system.

This fosters a labour market where workers are left without protection, and corruption thrives at the expense of employees’ well-being. Corrupt officials who should enforce labour laws sometimes extort money from both workers and employers instead of ensuring compliance. This erodes trust in the system and leaves employees without a reliable mechanism for seeking justice.

To address these concerns, Nigeria must urgently review its constitution to overhaul labour-related sanctions and fines. The review should focus on adjusting penalties to reflect present economic conditions. Fines should be significantly increased to serve as effective deterrents against violations. Employers who underpay workers or fail to provide safe working conditions should face consequences that compel compliance. Heavier fines and mandatory compensation for affected workers must be enforced. A system where employers prefer paying fines over following the law only perpetuates exploitation.

Strengthening enforcement mechanisms is also essential. It is not enough to revise penalties; enforcement agencies must be empowered to implement these laws effectively. This includes providing them with the necessary resources, training, and independence to carry out their duties without external interference. Labour inspectors must be held accountable, and corruption within enforcement agencies must be tackled.

Whistleblowing mechanisms should be encouraged, ensuring that employees can report workplace injustices without fear of retaliation. Whistleblowers should be legally protected and incentivised to provide credible information that can bring about systemic change.

Beyond fines, stricter consequences should be introduced, including the suspension of business licenses, public naming and shaming, and compulsory restitution for affected workers. These measures will enhance accountability and fairness in the system. It is not enough to impose fines on non-compliant employers; they must also compensate workers who have suffered due to their negligence.

Workers who have been denied wages should be reimbursed with interest, and those who have sustained workplace injuries due to unsafe conditions should receive adequate medical care and compensation. Employers with repeated violations should have their businesses blacklisted or permanently shut down to send a strong message that non-compliance will not be tolerated.

Legislative and judicial reforms are also necessary. The national assembly should amend outdated labour laws, while the judiciary should be empowered to fast-track cases of labour rights violations to ensure swift justice. Many labour disputes drag on for years in court, discouraging workers from seeking redress. A more efficient legal system with specialised labour courts will help resolve these cases quickly and provide timely relief to workers.

Labour unions and civil society organisations must also play an active role in advocating for these reforms. Public awareness campaigns should highlight the need for a constitutional review and the importance of stronger labour protections.

Nigeria’s economic landscape has evolved, yet its labour laws and penalties remain outdated. The failure to update fines and sanctions has emboldened exploitative employers, increased workplace injustices, and encouraged corruption. A constitutional review and a corresponding reform of labour laws are long overdue. If Nigeria is serious about fostering a just and equitable society, it must ensure that its laws are relevant, enforceable, and capable of deterring violations.

Workers are the backbone of the economy, and protecting their rights should be a national priority. Without strong labour laws and proper enforcement, Nigerian workers will continue to suffer, and the economy will struggle to reach its full potential. The time for action is now.

Samuel Jekeli writes from the Centre for Social Justice, Abuja. He can be contacted via [email protected]