Career Tips
5 Crucial Things to Check Before Signing Any Employment Contract in Nigeria.
Many job seekers rush to sign their contracts because they are eager to begin employment. However, what you agree to in writing can affect your salary, job security, career growth, work–life balance, and overall well-being.
Admin
December 12, 2025
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Starting a new job is exciting—but before you celebrate your offer, there is one document that can determine your entire experience at the company: your employment contract.
Many job seekers rush to sign their contracts because they are eager to begin employment. However, what you agree to in writing can affect your salary, job security, career growth, work–life balance, and overall well-being.
Understanding what to look for in your employment contract is not just smart—it is essential.
In this guide, we break down the key terms you must review carefully before signing any employment contract, especially in Nigeria. We also highlight what the Nigerian Labour Act says about written contracts and your rights as an employee.
Why Your Employment Contract Matters
Your employment contract is the legal agreement between you and your employer. It outlines:
* What you are expected to do
* What the employer must provide
* What happens if either side breaks the agreement
If a workplace dispute arises later, this contract becomes your strongest protection. That is why understanding it is crucial.
1. Salary Structure (Gross, Net, and Payment Cycle)
This is often the first thing candidates look at—and for good reason. But it’s not just about the amount. You must understand:
Gross Salary
This is your full monthly salary before deductions such as:
* Pension
* PAYE tax
* Health insurance
* Other statutory deductions
Net Salary
This is the actual amount you will take home after those deductions. Always confirm both.
What to check for:
* Is the salary clearly stated?
* Does it include bonuses or allowances?
* Are deductions listed?
* When is salary paid—monthly, bi-monthly, or specific dates?
A typical issue many Nigerian employees face is unexpected deductions. A written breakdown helps you avoid surprises.
2. Working Hours and Work Schedule
Every contract must specify the expected working hours per day and per week.
Important areas to review:
* Daily working hours (e.g., 8am–5pm)
* Weekly total hours
* Shift arrangements
* Remote or hybrid conditions
* Overtime expectations
* Weekend or public holiday work policies
A job advertised as “flexible” may turn out to be 7 days a week if the contract does not clearly define working hours. Make sure what was promised verbally matches what is written.
3. Benefits, Allowances, and Bonuses
Many candidates overlook this section, but benefits are part of your total compensation package. Your contract should clearly state the perks you are entitled to.
Common benefits include:
* Health insurance (HMO)
* Transportation allowance
* Housing allowance
* Feeding allowance
* 13th-month bonus
* Annual leave
* Professional development or training
* Remote-work stipends
* Performance bonuses
Be sure your contract answers these:
* Which benefits are guaranteed?
* Which are based on performance or company policy?
* Are allowances included in gross salary or added separately?
Clarity here prevents misunderstandings later.
4. Notice Period (For Resignation or Termination)
The notice period determines how much time you or your employer must give before ending the employment relationship.
In Nigeria, the notice period typically ranges from:
* 1 week for junior roles
* 1 month for mid-level roles
* 2–3 months for senior positions
Important questions to ask:
* How long is the notice period?
* Can the employer terminate you without notice?
* Can salary be paid in place of notice (payment in lieu)?
* What happens if you resign without proper notice?
Signing a contract with an unclear notice period can put you at a major disadvantage.
5. Termination Clause
This is one of the most critical parts of your employment contract. It outlines how and when the employer can terminate your job.
Look for the following:
* Is termination “at will”?
* Can the employer fire you without giving a reason?
* Are there steps required before termination (warnings, performance reviews)?
* Are there protections for unfair dismissal?
* What happens to unpaid salary, leave, or entitlements upon termination?
A poorly written termination clause gives the employer too much power. A balanced clause protects both sides.
Bonus: Other Important Terms to Review
1. Job Description
Ensures you know exactly what duties you’re responsible for—no surprises.
2. Probation Period
How long is it? Do benefits apply during probation?
3. Confidentiality and Non-Compete Clauses
Avoid signing overly restrictive clauses that might stop you from working elsewhere in your field.
4. Leave Entitlement
Check annual leave, sick leave, and maternity/paternity leave.
5. Dispute Resolution Method
Does the contract specify arbitration, HR process, or legal procedures?
Your Legal Rights Under the Nigerian Labour Act
The Nigerian Labour Act mandates that:
* Any employer with five (5) or more employees must provide a written employment contract.
* The contract must be given within three (3) months of employment.
* The contract must include your job role, salary, hours of work, notice period, and entitlements.
If your employer refuses to provide a written contract, they are violating the law.
Final Thoughts
Signing an employment contract is a serious commitment. Before you put pen to paper:
* Read every clause
* Ask questions
* Compare what was promised verbally with what is written
* Seek clarification from HR where needed
* Never sign under pressure
A job offer is exciting—but protecting your rights and future is even more important.
If you need help reviewing your contract, negotiating your salary, or preparing for a new job role, Job Bus Stop offers:
* Employment contract reviews
* CV and LinkedIn optimization
* Career coaching
* Interview preparation
We’re here to make sure you start your new job on the right foundation.
Many job seekers rush to sign their contracts because they are eager to begin employment. However, what you agree to in writing can affect your salary, job security, career growth, work–life balance, and overall well-being.
Understanding what to look for in your employment contract is not just smart—it is essential.
In this guide, we break down the key terms you must review carefully before signing any employment contract, especially in Nigeria. We also highlight what the Nigerian Labour Act says about written contracts and your rights as an employee.
Why Your Employment Contract Matters
Your employment contract is the legal agreement between you and your employer. It outlines:
* What you are expected to do
* What the employer must provide
* What happens if either side breaks the agreement
If a workplace dispute arises later, this contract becomes your strongest protection. That is why understanding it is crucial.
1. Salary Structure (Gross, Net, and Payment Cycle)
This is often the first thing candidates look at—and for good reason. But it’s not just about the amount. You must understand:
Gross Salary
This is your full monthly salary before deductions such as:
* Pension
* PAYE tax
* Health insurance
* Other statutory deductions
Net Salary
This is the actual amount you will take home after those deductions. Always confirm both.
What to check for:
* Is the salary clearly stated?
* Does it include bonuses or allowances?
* Are deductions listed?
* When is salary paid—monthly, bi-monthly, or specific dates?
A typical issue many Nigerian employees face is unexpected deductions. A written breakdown helps you avoid surprises.
2. Working Hours and Work Schedule
Every contract must specify the expected working hours per day and per week.
Important areas to review:
* Daily working hours (e.g., 8am–5pm)
* Weekly total hours
* Shift arrangements
* Remote or hybrid conditions
* Overtime expectations
* Weekend or public holiday work policies
A job advertised as “flexible” may turn out to be 7 days a week if the contract does not clearly define working hours. Make sure what was promised verbally matches what is written.
3. Benefits, Allowances, and Bonuses
Many candidates overlook this section, but benefits are part of your total compensation package. Your contract should clearly state the perks you are entitled to.
Common benefits include:
* Health insurance (HMO)
* Transportation allowance
* Housing allowance
* Feeding allowance
* 13th-month bonus
* Annual leave
* Professional development or training
* Remote-work stipends
* Performance bonuses
Be sure your contract answers these:
* Which benefits are guaranteed?
* Which are based on performance or company policy?
* Are allowances included in gross salary or added separately?
Clarity here prevents misunderstandings later.
4. Notice Period (For Resignation or Termination)
The notice period determines how much time you or your employer must give before ending the employment relationship.
In Nigeria, the notice period typically ranges from:
* 1 week for junior roles
* 1 month for mid-level roles
* 2–3 months for senior positions
Important questions to ask:
* How long is the notice period?
* Can the employer terminate you without notice?
* Can salary be paid in place of notice (payment in lieu)?
* What happens if you resign without proper notice?
Signing a contract with an unclear notice period can put you at a major disadvantage.
5. Termination Clause
This is one of the most critical parts of your employment contract. It outlines how and when the employer can terminate your job.
Look for the following:
* Is termination “at will”?
* Can the employer fire you without giving a reason?
* Are there steps required before termination (warnings, performance reviews)?
* Are there protections for unfair dismissal?
* What happens to unpaid salary, leave, or entitlements upon termination?
A poorly written termination clause gives the employer too much power. A balanced clause protects both sides.
Bonus: Other Important Terms to Review
1. Job Description
Ensures you know exactly what duties you’re responsible for—no surprises.
2. Probation Period
How long is it? Do benefits apply during probation?
3. Confidentiality and Non-Compete Clauses
Avoid signing overly restrictive clauses that might stop you from working elsewhere in your field.
4. Leave Entitlement
Check annual leave, sick leave, and maternity/paternity leave.
5. Dispute Resolution Method
Does the contract specify arbitration, HR process, or legal procedures?
Your Legal Rights Under the Nigerian Labour Act
The Nigerian Labour Act mandates that:
* Any employer with five (5) or more employees must provide a written employment contract.
* The contract must be given within three (3) months of employment.
* The contract must include your job role, salary, hours of work, notice period, and entitlements.
If your employer refuses to provide a written contract, they are violating the law.
Final Thoughts
Signing an employment contract is a serious commitment. Before you put pen to paper:
* Read every clause
* Ask questions
* Compare what was promised verbally with what is written
* Seek clarification from HR where needed
* Never sign under pressure
A job offer is exciting—but protecting your rights and future is even more important.
If you need help reviewing your contract, negotiating your salary, or preparing for a new job role, Job Bus Stop offers:
* Employment contract reviews
* CV and LinkedIn optimization
* Career coaching
* Interview preparation
We’re here to make sure you start your new job on the right foundation.
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