Getting Termination Right: The Most Common Employer Mistakes in Nigeria

Employment termination is one of the highest-risk moments in any employment relationship. Yet the termination process in many Nigerian organisations is managed informally, inconsistently, and in ways that create unnecessary litigation exposure.

As a former Industrial Court judge, I have seen the same employer errors repeat across hundreds of cases. Most are entirely avoidable.

Mistake 1: Terminating Without Following the Contract

This seems obvious, but it remains the single most common error. If an employment contract requires notice, severance, or a disciplinary hearing before termination, those provisions create contractual obligations. Breaching them creates a breach of contract claim — separate from, and in addition to, any statutory unfair dismissal claim.

Mistake 2: Confusing Termination and Dismissal

Summary dismissal — immediate termination without notice or payment — is only legally defensible where there is gross misconduct that is clearly defined and properly documented. Termination for performance, redundancy, or restructuring is a different legal process with different obligations. Many employers dismiss for performance but want to use summary dismissal procedures to avoid notice payments. This is legally risky.

Mistake 3: No Documentation of the Process

The NIC frequently awards against employers not because the decision to terminate was wrong — but because the employer cannot demonstrate that a fair process was followed. Investigation records, disciplinary hearing minutes, warning letters, and response opportunities are all evidence of procedural fairness. Organisations that manage these processes verbally and informally have no evidence when it matters.

Mistake 4: Inadequate or Ambiguous Redundancy Process

Redundancy is a legitimate reason to terminate employment — but it must be genuine redundancy, applied through a fair selection process, with appropriate consultation and statutory or contractual severance paid correctly. Selection for redundancy based on protected characteristics (pregnancy, trade union membership, age) is unlawful regardless of how the redundancy is framed.

What Good Process Looks Like

A sound termination process is: documented from the outset, consistent with the employment contract and HR policy, fair in the opportunity given to the employee to respond, concluded by someone with appropriate authority, and followed by correct final payments calculated to the last naira.

This is not bureaucratic box-ticking. It is risk management.