Lawmaker proposes jail time for employers who owe salaries

A lawmaker is proposing cracking down on employers who steal wages with a new bill that criminalizes non-payment of salaries.

The “Employees Remuneration Protection Bill, 2023,” sponsored by Wale Hammed, could see employers facing jail time and hefty fines for failing to pay their workers.

The bill, which passed its first reading in the House of Representatives, aims to protect employees from the devastating consequences of wage theft, a widespread problem in Nigeria.

Under the proposed legislation:

1. Employers who withhold salaries face 3-6 months in prison without the option of a fine.
2. Corporate entities could be fined N10,000 daily or shut down for up to 3 months for non-compliance with court orders regarding employee pay.
3. Individuals who authorize or permit wage theft within an organization will be personally liable for a N10,000 penalty.

Beyond criminal penalties, the bill also strengthens employee protections:

1. Employees can demand back pay through a written claim.
2. Employers must provide written employment contracts outlining terms, conditions, and payment methods within 14 days of hiring.
3. Courts cannot consider an employee’s claim for unpaid wages as grounds for disciplinary action or termination.

In case of employer bankruptcy, employee wages will be prioritized for payment. This landmark bill sends a clear message: wage theft will no longer be tolerated in Nigeria.

By criminalizing non-payment and empowering employees to seek redress, the legislation has the potential to significantly improve working conditions and protect vulnerable workers across the country.