Compulsory Period Of Grace Before Employer Can Demand Recovery Of Salary Advances In Nigeria.

Daily Law Tips (Tip 399) by Onyekachi Umah, Esq., LLM. ACIArb(UK)

COMPULSORY PERIOD BEFORE EMPLOYER CAN DEMAND RECOVERY OF SALARY ADVANCES IN NIGERIA.

First of all, it is unlawful for an employer to pay an employee more than One Month salary advance in any part of Nigeria, whether in government or private organisation.
Where salary advance is given to an employee, the minimum grace period to be offered to an employee before demanding for repayment/recovery of salary advance is 3 months. Hence, it is illegal for an employer to demand for recovery or repayment of salary advance within 2 months of offering such salary advance to an employee.

My authorities are sections 4(1), (2), 91 and 92 of the Labour Act, 1971.

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