Losing a job is difficult enough. Losing it in a way that violates your contract, denies you proper notice, or comes with outstanding salary and benefits unpaid compounds the harm. Many Nigerian employees in this situation assume their only option is an expensive lawsuit — or no option at all. Neither is correct.
This guide covers wrongful and unfair termination under Nigerian law, what you're entitled to, and the practical steps to pursue your claim without immediately heading to the National Industrial Court.
The Difference Between "Wrongful" and "Unfair" Dismissal
These terms are often used interchangeably but have distinct legal meanings under Nigerian labour law:
- Wrongful dismissal occurs when an employer terminates employment in breach of the employment contract — typically by failing to give the contractually required notice, or by dismissing without following the disciplinary procedure the contract requires. The remedy is financial: the value of the notice period you were denied.
- Unfair dismissal is a broader concept recognized under the Labour Act and National Industrial Court jurisprudence — a dismissal that is procedurally or substantively unjust even if the contract was technically followed. Dismissal for discriminatory reasons, dismissal as retaliation for whistleblowing, or dismissal without any hearing where one was required all qualify.
In practice, most employment disputes involve elements of both: the employer didn't follow the notice provisions, didn't conduct a proper query-and-response process, and is also withholding final pay.
What You Are Entitled to When Your Employment Ends
Regardless of the reason for termination, your employer owes you:
- All accrued salary up to your last working day (or your last day on notice), including any performance bonuses earned
- Payment in lieu of notice — if you were terminated without the required notice period, your employer owes you salary for that notice period. Most contracts specify 1–3 months; the Labour Act provides a minimum of one month for most workers.
- Accrued leave pay — any annual leave you earned but didn't take must be paid out in cash on termination
- Gratuity and pension — any contractual gratuity owed, and your employer's pension contributions must be remitted to your pension fund
- Any other contractual entitlements — medical allowances, housing allowances, car allowances, or other benefits provided under your contract that remain unpaid
These entitlements exist regardless of whether the termination was justified. Even if you were legitimately dismissed for gross misconduct, you are still owed your accrued salary and leave pay.
Step 1: Document Everything Before You Lose Access
The moment you know your employment is ending, collect copies of:
- Your employment contract or offer letter
- Your pay slips for the past 12 months
- The termination letter (or, if given verbally, document the conversation in writing immediately)
- Any written queries, warnings, or disciplinary correspondence
- Performance reviews
- Any emails or messages relevant to the circumstances leading to dismissal
- Your staff handbook, which may contain the disciplinary procedure your employer was required to follow
Access to company systems is often revoked quickly after termination. Download what you need while you still can.
Step 2: Calculate Your Full Entitlement
Before making any demand, calculate exactly what you are owed:
- Unpaid salary (days worked × daily rate)
- Notice pay (monthly salary × notice months owed)
- Leave pay (daily rate × accrued leave days)
- Any unpaid bonuses or allowances
- Gratuity if applicable under your contract
Be specific. A demand for "₦850,000 representing 2 months' notice pay at ₦425,000/month" is far more effective than "you owe me money."
Step 3: Send a Formal Demand Letter
Write a formal demand letter to the employer's HR department or CEO. State:
- That your termination was wrongful, specifying the breach (no notice, no disciplinary procedure, discriminatory reason)
- The specific amounts you are claiming and how each was calculated
- A 14-day deadline for payment and/or a formal response
- That you will file for mediation and then pursue the matter at the National Industrial Court if unresolved
Was a disciplinary process required before your dismissal?
Most Nigerian employment contracts and staff handbooks require that before an employee is dismissed (as opposed to merely terminated on notice), a formal query must be issued, the employee must have an opportunity to respond, and a disciplinary hearing must be conducted. If you were dismissed — not just given notice — without this process, your dismissal is procedurally flawed regardless of whether the underlying reason was valid. Document whether this procedure was followed.
Step 4: File for Mediation
Mediation is particularly effective for employment disputes because:
- Most employers — particularly larger ones — prefer to resolve employment disputes quietly rather than have them become formal NIC proceedings with a public record
- The financial calculations are usually concrete and documentable
- A signed mediation agreement provides immediate, enforceable resolution rather than waiting 1–2 years for a court judgment
- Many employment disputes settle at the level of outstanding salary and notice pay even when reinstatement is also being sought
Step 5: The National Industrial Court (NIC)
The National Industrial Court has exclusive jurisdiction over employment disputes in Nigeria. It handles wrongful dismissal, unfair dismissal, unpaid salary, discrimination, and breach of employment contract claims. You can file directly at any NIC division — Lagos, Abuja, Port Harcourt, and most major cities have divisions.
The NIC can award:
- Damages for wrongful dismissal
- Compensation for unfair dismissal (often 6–12 months' salary)
- Reinstatement (rare in practice, but available)
- Payment of all outstanding entitlements
- Costs
Special Situation: Constructive Dismissal
Constructive dismissal is when your employer doesn't formally fire you, but creates such intolerable working conditions that you are effectively forced to resign. Common examples:
- Unilateral salary reduction without agreement
- Arbitrary demotion or removal of responsibilities without cause
- Systematic harassment or hostile treatment designed to force you out
- Relocating you to a position that effectively makes your job impossible
If you resign under these circumstances, you may be entitled to claim constructive dismissal — treating your resignation as a forced termination. Document the specific conditions that made your continued employment untenable.
Common mistakes after wrongful termination
- Signing a "full and final settlement" document under pressure. If an employer presents a settlement agreement on the spot, read it carefully — or have someone review it — before signing. A document that says your claims are "settled in full" for a small amount closes the door to further claims.
- Waiting too long. Employment claims are subject to limitation periods. File within 3–5 years of dismissal — but the sooner you act, the stronger your position and the fresher your evidence.
- Burning bridges publicly. Venting on social media about your former employer before a dispute is resolved can complicate settlement negotiations and potentially expose you to defamation claims.
- Assuming you have no case because you were on probation. Probationary employees have fewer rights in some respects, but they are still entitled to payment for days worked, and dismissal in breach of the probationary procedure can still be challenged.
File a wrongful termination case today
SettleMe formally invites your employer to structured mediation. Most employment disputes that include clear unpaid entitlements settle at mediation — faster and less costly than the National Industrial Court.
File Your Case →₦10,000 per party · One-time flat fee