Unpaid salary is one of the most common employment grievances in Nigeria. Whether it's a month of withheld wages, terminal benefits owed after resignation, or commission that was promised and never paid — being owed money by an employer puts you in a difficult position.
You need the job (or the reference). You don't want to "cause trouble." You're not sure if you have a case. And hiring a lawyer feels like more than you can take on right now.
This guide explains your rights, what documentation you need, and the steps to recover what you're owed — starting with the options that don't require a courtroom.
Common Employment and Salary Disputes in Nigeria
- Withheld monthly salary — Your employer stopped paying your salary and is offering vague reasons or no reason at all.
- Unpaid terminal benefits — You resigned or were let go, and your employer is refusing to pay your final salary, leave allowance, or gratuity.
- Wrongful termination — You were dismissed without proper notice, without following the disciplinary procedure in your contract, or for an unlawful reason.
- Unpaid freelance or contract work — You completed work under a contract or retainer agreement and were not paid.
- Withheld commission or bonuses — Your employer is refusing to pay commissions or bonuses you earned under an agreed scheme.
- Deductions without consent — Your employer made deductions from your salary for reasons not permitted by your contract or Nigerian law.
Your Rights Under Nigerian Law
Key legal protections for Nigerian employees
- The Labour Act (Cap L1, LFN 2004) requires employers to pay wages on the agreed date and prohibits unlawful deductions.
- The National Industrial Court Act 2006 gives the National Industrial Court (NIC) exclusive jurisdiction over employment disputes — it is a federal court at the same level as the Federal High Court.
- An employer cannot legally dismiss an employee without following the disciplinary procedure in the employee's contract or the company's staff handbook.
- Minimum notice periods apply unless a contract specifies otherwise — typically one month for monthly-paid employees.
- Retaliating against an employee for demanding their lawful wages is itself a separate legal wrong.
Step 1: Gather Your Employment Records
Before taking any action, pull together your documentation:
- Your employment contract or offer letter (even an informal email counts)
- Payslips or salary records for the months owed
- Bank statements showing previous payments and the gap
- Any written communications about the withheld payments (emails, WhatsApp with HR or your manager)
- Your resignation letter or termination notice, if applicable
- Any agreed commission structure or bonus scheme documentation
If you don't have a formal contract, that doesn't end your case — regular payment history, an offer letter, or even consistent payslips establish the employment relationship and the agreed salary amount.
Step 2: Submit a Formal Written Demand
Write a formal letter or email to your employer's HR department or director. State clearly:
- The specific months and amounts owed
- The legal basis for your demand (your contract, Nigerian Labour Act)
- A deadline for payment — 14 days is reasonable
- That you will pursue formal remedies if the deadline passes
Send this by email so you have a timestamped record. If HR ignores it, it becomes evidence that you exhausted internal options before escalating.
Step 3: Try Mediation Before Court
Before filing at the National Industrial Court — which involves lawyers, court fees, and time — mediation is worth trying. It works well for employment salary disputes because:
- Many employers will engage when a formal third-party invitation arrives — it signals you're serious without being as adversarial as a court summons
- A certified mediator reviews the employment records and facilitates a clear discussion about what is owed
- It is significantly faster and cheaper than NIC proceedings
- A signed mediation agreement is legally enforceable as a contract
- If mediation fails, you still have full access to the NIC — and a documented attempt at resolution strengthens your case
When to Go Directly to the National Industrial Court
Mediation may not be appropriate where your employer is a large institution that has a policy of never engaging with mediation, or where the amount owed is very large and you need the legal authority of a court order to enforce it. In those cases, proceed directly to the NIC.
The NIC handles matters including: unpaid wages, wrongful termination, breach of employment contract, and discrimination. You can file without a lawyer, though legal representation is common for complex cases.
Frequently Asked Questions
Is withholding salary illegal in Nigeria?
Yes. Under the Nigerian Labour Act (Cap L1, LFN 2004), employers are legally required to pay agreed wages on the agreed date. Withholding earned salary without lawful justification is unlawful, and an employee can seek redress through mediation or the National Industrial Court.
Can I be fired for asking for my unpaid salary?
No. Dismissing an employee for demanding their lawful wages constitutes wrongful termination and is itself an additional legal claim. Document any such retaliation carefully.
What if I'm a freelancer or contract worker — do these rules apply?
If you have a written services agreement or can demonstrate a consistent engagement, you can pursue your unpaid fees through mediation or civil court. The Labour Act covers employees specifically, but contract disputes fall under general contract law — equally enforceable.
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