23/06/2026
Many employers assume that if there is no written contract, there is no binding employment relationship, that is incorrect.
Under the labour law, an employment relationship can exist even without a written contract, once an employee is engaged, performs work, and receives remuneration, a valid contract of employment may be inferred from the conduct of the parties.
However, where an employer fails to provide a written statement of the terms and conditions of employment as required by law, the employer may face significant legal consequences, including:
1. Difficulty Proving Employment Terms -
In the event of a dispute, the employer may struggle to prove the employee's salary, duties, working hours, leave entitlement, disciplinary procedures, and other terms of employment.
2. Interpretation Against the Employer -
Ambiguities arising from the absence of written terms are often construed against the employer, especially where the employer had the responsibility of documenting the employment relationship.
3. Reliance on Oral Evidence and Conduct -
The court may determine the terms of employment based on oral agreements, workplace practices, correspondence, salary records, and the conduct of the parties.
4. Exposure to Employment Claims -
Employees may successfully challenge wrongful termination, unpaid salaries, benefits, and other employment-related issues where the employer cannot produce clear contractual terms.
5. Violation of Statutory Obligations -
Section 7 of the Nigerian Labour Act requires an employer to provide an employee with a written statement specifying the terms and conditions of employment within three months of commencement of employment.
NOTE:
Failure to issue a written contract does not invalidate the employment relationship. Rather, it often places the employer at a disadvantage whenever a dispute arises because the employer loses the benefit of clear, documented terms governing the relationship.