Reps propose imprisonment for employers who delay or fail to pay employees’ salaries

A new bill presented in the House of Representatives suggests that employers, whether individuals or corporate entities, could face imprisonment if they delay or fail to pay their employees’ salaries, Aso Naija Reports.

The bill, named the Employees Remuneration Protection Bill, 2023, is sponsored by Wale Hammed, a representative from the Agege federal constituency of Lagos State.

According to TheSun, the bill has successfully passed the first reading, specifically Section 7 (1), which declares it unlawful for employers to refuse or neglect the payment of their employees’ remuneration as outlined in the Act. Additionally, Section 8 (1) states that if an employee’s remuneration remains unpaid after the specified period in the bill, the employee can serve a written demand to claim their entitlement.

Furthermore, the bill states that if an employee serves a demand under Section 9 and remains unpaid after five working days, they can seek redress by applying to the court via a motion on notice. Subsequently, the proposed legislation imposes a prison sentence of three to six months, without the option of a fine, for individual employers found guilty of not paying their workers’ salaries.

In the case of a corporate body that fails to comply with a court order regarding the payment of its employee(s), the bill states they shall be liable to a fine of N10,000 for each day of default. If the default extends beyond two months, the corporate entity may also face temporary closure for a period not exceeding three months.