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Are Unwritten Employment Contracts Legally Valid and Enforceable In Nigeria?
Agreements are made to be honoured. An unwritten contract is enforceable provided it complies with all the requirements of a valid contract. This article offers insights into the realm of employment contracts in Nigeria, particularly focusing on the enforcement and implications of unwritten contracts.
Meaning and ingredients of a contract
A contract is simply a legally enforceable agreement, written or unwritten (oral), freely and voluntary reached between or entered by two or more persons with a clear intention to create a binding legal relationship. See, NURTW &Ors v. First Continental Insurance Co. Ltd (2019) LPELR-48005(CA). For there to be a valid, enforceable and binding contract between the parties, the following basic essential elements must be present.
Author: Adeola Oyinlade & Co.
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- A definite offer,
- Unqualified acceptance,
- Intention to create a binding legal relationship,
- Consideration, and
- Legal capacity to contract.
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- Master and servant, relationship;
- Where a servant holds an office at the pleasure of master; and
- Employment that is governed by statute. A contract is said to have statutory flavour where the contractual relationship between the employer and the employee is governed by a statute or regulations derived from statutes. See NEPA vs. Adesaaji (2002) 17 NWLR Part 797 page 578.
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- those regarded as purely master and servant;
- those where a servant is said to hold an office at the pleasure of the employer: and
- those where the employment is regulated or governed by statute, often referred to as having statutory flavor, See, Olaniyan v. University of Lagos (1985) 2 NWLR (Pt. 9) 599.; CBN v Igwillo (2007) LPELR-835(SC)
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- To place before the trial court the terms of the contract of employment;
- To prove the manner in which the said terms were breached by the employer thereof.
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- the nature of the employment
- the length of service, and
- other circumstances of the case.
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- Either party to a contract of employment may terminate the contract on the expiration of notice given by him to the other party of his intention to do so.
- The notice to be given for the purposes of subsection (1) of this section shall be-
- one day, where the contract has continued for a period of three months or less;
- one week, where the contract has continued for more than three months but less than two years;
- two weeks, where the contract has continued for a period of two years but less than five years; and
- one month, where the contract has continued for five years or more.
Author: Adeola Oyinlade & Co.