#Legal Sense

Contract of employment

By Funmilayo Olagunju

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Employment contract is a contract between an employer and employee in which the terms and conditions of employment are stated.

Section 91 of the Labour Act defines Contract of Employment:

“an agreement whether oral or written, express or implied whereby one person agrees to employ another as a worker and that person agrees to serve the employer as a worker”

Section 7 of the Labour Act requires Employer to issue a WRITTEN Contract of Employment to their workers within three months of commencement of the Employment relationship.

In lay parlance, worker and employee might be used interchangeably. Technically, they are different.

Difference between Workers and Employees

WORKERS are defined under the Labour Act as those “who are generally employees who perform manual labour or clerical work”

EMPLOYEES

Those who perform administrative, executive, technical or professional functions (referred to as non-workers)

The Labour Act prescribes minimum terms and conditions of employment that applies to “workers.” These terms does not apply to “Employees”

The terms and conditions of employment of non-workers (Employees) are primarily subject to the terms of their respective contract of employment.

There is a presumption that an Employee is well informed and intellectually equipped for fair bargain. The fate of every Employee is in his/her own hands.

The implication of this is that an Employee who signs an unfavorable Contract of Employment can not be seeking refuge or protection under the minimum terms provided by the Labour Act.

It is in the interest of every prospective Employee and Applicant to retain a competent Professional to review your Contract of Employment.

The excitement of finding a dream job should not push you into signing a vague or unfavorably Contract of Employment.

A stitch in time, saves nine.

“Enthusiasm without knowledge is not good; impatience will get you into trouble”

Proverbs 19:2 (GNB).

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