Resignation with Immediate Effect: Consequences for Employers and Employees under Nigerian Law

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ABSTRACT

Resignation with Immediate Effect: Consequences for Employers and Employees under Nigerian Law

Edafe Ugbeta*

ABSTRACT

This paper explores the subject of resignation from employment under Nigerian law, focusing on the form of resignation called ‘resignation with immediate effect’. Reflecting on the emerging case law of the National Industrial Court, the specialised first-instance court for employment disputes in Nigeria, the paper highlights the implications of this kind of resignation for employers and employees under Nigerian law. It draws on a range of scenarios in developing the conversation.

Keywords: Labour law, employment, resignation, National Industrial Court.

INTRODUCTION

The National Industrial Court of Nigeria (“the NICN”), the court of first instance for employment disputes in Nigeria, is developing an interesting jurisprudence on the consequences of an employee terminating his employment contract with immediate effect. The court’s position, which appears to be a response to an emerging trend in the employment landscape in Nigeria,₁ sheds light on some silent aspects of existing common law principles governing employment resignations. But before going further, we are focusing particularly on a situation where an employee, in notifying the employer of his decision to leave the employer’s business (whether by letter or email), indicates that he is resigning ‘with immediate effect’ or even stops work without any notice.

Generally, Nigerian law requires an employee to give their employer prior notice of their decision to end the employment contract.₂ An employee is also required to work during the notice period as set out in the employment contract or implied by statute where there is no written contract.₃ However, there are several reasons why an employee may not want to work during his notice period and choose instead to resign ‘on the spot.’₄ This could happen, for example, when the employee receives a new job offer with a better compensation package and work conditions but with an immediate or short start date. This article reflects on the NICN’s case law, which expounds the legal principles applicable to this kind of scenario, with a view to providing some useful insights into the implications of such resignation for both employers and employees under Nigerian law.

The Law Regarding Resignation of Employment ln Nigeria
There are several ways to bring a contract of employment to an end in Nigeria, one of which is resignation. A resignation is when an employee informs their employer that he is leaving their…

*LLM (South Wales), LLM (Kent), BL.

1. The NICN case law reviewed in this article shows that there has been a growing tendency by employees
   in Nigeria to resign from their jobs with immediate effect.
2. Labour Act Cap L1, Laws of the Federation of Nigeria 2004, s 9(7)(a) and s 11.
3. Labour Act, s 11.
4. Otherwise referred to in this article as ‘resignation with immediate effect’ or ‘resignation without notice’.

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW Vol.16 No.1