Handshakes are greetings, not contracts. Some people no be gentleman at all.
Congratulations, Boss! You’ve finally scaled. The workload has moved from “Work-life balance” to “Sleep is for the weak”. You’ve finally decided to hire your first staff. Your guys are calling you young baller, shot caller, Idan! You’ve found a “smart young lad” or a “sharp girl”, and you’re ready to start (assuming that your side hustle is legally a business in the first place).
But wait. Before you give them that “congratulations” hug and a login to our company’s Instagram, let’s sort out a few small details.
In Nigeria, there’s a saying: “Person wey borrow cloth no dey dance rough.” In the business world, if your employment contract is borrowed or non-existent, your business is skating on thin ice. One small “misunderstanding” and suddenly, you’re in the National Industrial Court explaining why you don’t owe someone three years’ salary in damages.
Here are the contract mistakes that turn “CEOs” into “Maldini”, sorry, not defenders – “Defendants”!
1.“My Word is My Bond”
Listen, we know you’re a man/woman of integrity. But in the eyes of the Nigerian Labour Act, “My word is my bond” is just a line from a James Bond movie.
Section 7 of the Labour Act is very clear: You have 3 months from the day a worker starts to give them a written contract. If you don’t, and things go south, the court will likely believe whatever the employee claims you promised them.
The Risk: “Wrongful termination” suits.
The Reality: Employment laws in Nigeria don’t care about your office’s good vibes. Get it in writing!
2. “I’ll Know if I Like You”
Many SMEs hire people because they’re pretty and just… let them stay. Six months pass, then a year. Then you realise the person’s work ethic is actually godawful. You fire them on the spot.
Boom! Lawsuit.
Pretty will teach you ugly lessons.
You must clearly define a probation period (usually 3 to 6 months). This is the “dating phase” where you can terminate the relationship with shorter notice (like one week or even 24 hours if stated). Here’s a quick tip from my close and personal friend, Barney Stinson, “A relationship is a freeway. You need clearly marked exit points—that’s your probation period—for when things go sideways. If you miss the exit, my guy, you’re stuck driving to the in-laws’ house for Christmas forever. The Nigerian Labour Act is basically a GPS that locks you onto the ‘Till Death Do Us Part’ lane if you don’t use your first 3-6 months wisely; your L would be Legen—wait for it—dary!”
If you don’t specify when probation ends and what happens after, the law might assume they are “confirmed” staff. Confirming a staff member by accident is like getting married because you forgot to tell your date the night was over.
3. “My Idea, Your Pocket”
Imagine this: You hire a graphic designer to create your brand identity. Two months later, they quit, start a rival company, and claim they own the copyright to your logo because they drew it.
In Nigeria, if your contract doesn’t explicitly have an Intellectual Property (IP) Assignment clause, you might be paying for work you don’t technically own.
Pro-Tip: Our friends at Maestro Touch Legal advise that you ensure the contract states that any work created “in the course of employment” belongs to the company. Don’t allow them remove the ‘y’ from “Your Secret Sauce”.
4. “Justice for All” Termination
Nigerians are very religious, but “The Lord will judge” usually happens after the Labour Court has placed a judgment that affects your bank account.
You cannot fire someone just because “their face was annoying today” – even though we sometimes really want to. To avoid wrongful termination Nigeria headlines, follow the disciplinary procedure in your contract:
Query: (Ask them what happened in writing).
Warning: (The “don’t try it again” letter).
Hearing: (Let them defend themselves).
If you skip these steps, even if the staff stole your office generator, a court might still fine you for “procedural unfairness.”
5. “I Can’t Let You Go”
This is not the intro to that one Stefflon Don song.
You’ve spent millions training your staff. You’ve taught them the MaestroTouch way. Then a competitor offers them 20k extra, and they want to jump ship with your client list.
A Non-Compete and Non-Solicitation clause is your shield. While Nigerian courts are wary of covenants that act in “restraint of trade”, a reasonable clause (e.g., “You can’t work for a direct competitor within 5km for 6 months”) can save your business from being cannibalised by ex-employees.
Don’t Be a “Penny Wise, Pound Foolish” CEO
Hiring a lawyer to draft a proper template might cost you a bit now, but it’s cheaper than a 5-million-naira settlement later. Be careful:that sweet-sounding free contract template could cost your Nigerian business everything, and generic documents could cause you to donate your profits; why your copy-paste tcs are a legal suicide mission.
You’re building a Roman Empire, not a kiosk. Protect it.
Ready to scale safely? Contact a Lawyer to ensure your contracts are as solid as your hustle.
Disclaimer: This article is for entertainment and educational purposes. It does not constitute formal legal advice. Please consult a qualified legal practitioner before signing your life away (or someone else’s).
