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Employees compensation during disaster period: Matters arising (I)

Few weeks ago, this column addressed subject issue particularly under the current Covid-19 pandemic and the challenges of government and health workers induced lockdown of virtually most if not all activities.

Attempts was made in the article to shed lights on what is prevalent in both Local and International climates as regards workers compensation during the lockdown period.  We espoused that some organisations decided unilaterally not to pay workers any amount during the lockdown period (suspension of employment contract), others decided to pay varying degrees of amounts ranging from 10 to 100% of monthly pay.  Quite a number of organisations developed alternative working scheme to manage the challenge.

We have received a number of reactions on the article which necessitate this outing.  A number of people felt very strongly that the presentation was a bit tilted to business owners and not the workers more so that I should be pro-workers being a comrade myself and indeed a member of the working class or to put it bluntly a labourer myself.

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Arising from the feedback, I decided to take a second look at the topic and to analyse critically the relationship between labour and capital and in particular the rights and obligations of the employers to employees.  In essence we would be looking at the axiom which says give Caesar what is due to Caesar even under a period of emergency.

In defining and determining the rights of an employee from employer, we need to ascertain or distinguish between what is a duty and what is obligation.  In general duties and obligations are similar because both are acts or course of actions to which one is covenanted upon and thus one is bound to adhere to.

Furthermore, one may ask, what is a right?  Rights are a collection of entitlements arising out of or from obligations owed by one party to another.  In general rights infringement, in law, attracts remedy.  Indeed, lawyers believe that rights and obligations are two sides of a coin.

The rights and or obligations of employers to employee in ordinary times (normal and or usual times) are provision of working tools and implements as well as timely payment of wages and salaries,  healthy and safe environment, indemnity and insurance (workman compensation) and testimonial and or references to mention but a few.

The big question is can one say these rights and obligations subsist even during emergency situations such as the lockdown period we are experiencing?

In my opinion, ‘lockdown’ exercise is an emergency and or extra ordinary situation or protocol that prevents people from leaving an area or entering an area usually imposes and enforce by a competent authority.

Workers compensation by law is generally due for payment as at when due in the light employment contract signed between parties.  This obligation subsists and continues to so do until and unless the contract is brought to a lawful end through the provisions of the said contract.  Indeed obligations to pay workers salaries will continue even in an emergency situation (such as Covid-19 lockdown period) unless a waiver is granted by the Federal Ministry of Labour and Productivity as provided by the Labour Act.  The obligation of the payment covers periodicity and regularity to all employees.

Indeed, it is important and necessary or relevant to state that it is not impossible that insolvencies will result from the impact of the pandemic on national and global economics.  Hertz Car Rental has filed for bankruptcy in the US already.  We did mention other companies in our previous articles on this subject matter.  In such situation workers may be happy to hear that salaries and personnel benefits are classified as preferential payments as these payments take precedence over and above other debts of an employer.

However, an employer cannot decide not to pay workers because they do not work.  In essence the well known principle of No Work No Pay axiom cannot, does not and would not apply under a circumstance like the lockdown period.

This policy is only valid and relevant if, when or where workers are on strike.  Emergency period are not strike period.  This provision is contained in the Trade Disputes Act currently in use to guide issues of disputes between employers and employees.

The Nigerian Labour Act covers mostly low cadre employees who perform manual labour or clerical work.  It provides that employees are entitled to wages only on the first day of the lockdown period where the employer is unable to provide work environment as a result of an emergency beyond the employers control such as Covid-19 lockdown.  This period should or ordinarily not be longer than one week or such a period as may be defined by labour officer.  The Labour Act does not envisage such long period.  Unfortunately till now there has been no guidance from the Ministry of Labour and Productivity.

Thus the position espoused in the previous article covering this matter, tried to use a number of principles namely doctrine of necessity, general practice from different climates and concept of fairness, equity and justice as well as sensibilities.

We would explore other angles, particularly the legal sides of employment contract and the labour laws of the land so as to cover all aspects by our concluding piece next week.

“My Lord! Enrich me with knowledge…” (Quran 20:114)

For the Lord gives wisdom; from his mouth come knowledge and understanding (Proverbs 2:6)

 

 

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