Employment Contracts in Nigeria: What Every Business Owner Must Include

Why a written contract matters

Under the Nigerian Labour Act, every employee is entitled to a written statement of terms within three months of starting work. Many businesses skip this — and that is where disputes begin. A well-written employment contract protects both you and your employee.

What must be in every contract

• Job title and description — what the person will be doing day to day.
• Remuneration — salary, payment frequency, and any bonus or commission structure.
• Working hours — including expectations around overtime.
• Leave entitlements — annual leave of at least 6 working days is required by law after 12 months of service.
• Probation period — typically 3 to 6 months, with reduced notice on either side.
• Notice period — how much notice either party must give to end the employment.
• Termination grounds — what constitutes misconduct and how disciplinary procedures work.

Common mistakes to avoid

The most common mistake is using a template from the internet without adapting it. A contract written for a UK or US business may not reflect Nigerian labour law at all. Another frequent issue is leaving out the probation period — without it, full employment protections apply from day one.

How Doksign helps

Doksign comes with contract templates built specifically for Nigerian businesses. You fill in the relevant details, the system sends a secure link to the employee, and they sign from any device — no printing, no back-and-forth.