Termination Without Cause Contract for Nigeria

Termination Without Cause Contract Template for Nigeria

A comprehensive legal document governed by Nigerian law that facilitates the termination of employment without attributing specific cause or fault to the employee. The agreement outlines the terms and conditions of the separation, including notice periods, financial settlements, and post-employment obligations, while ensuring compliance with Nigerian Labour Act requirements and common law principles. It provides protection for both employer and employee interests, incorporating necessary provisions for confidentiality, property return, and final settlements, while maintaining professional relationships and minimizing legal risks.

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What is a Termination Without Cause Contract?

The Termination Without Cause Contract is essential in Nigerian business operations where employment relationships need to be ended amicably without citing specific performance issues or misconduct. This document is typically used during organizational restructuring, strategic changes, or other business decisions that necessitate workforce adjustments. It must comply with Nigerian employment law, particularly the Labour Act and relevant common law principles, while providing clear terms for notice periods, severance payments, and post-employment obligations. The document serves to protect both employer and employee interests, minimize potential disputes, and ensure a professional separation process. It includes provisions for final payments, benefit arrangements, confidentiality obligations, and property return, while maintaining compliance with local regulatory requirements and best practices in employment termination.

What sections should be included in a Termination Without Cause Contract?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief context of the employment relationship and decision to terminate

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Clear specification of the effective date of termination

5. Notice Period: Details of the notice period being provided or paid in lieu

6. Payment Terms: Outline of final salary, benefits, and any severance package

7. Company Property: Requirements for return of company property and equipment

8. Confidentiality: Ongoing obligations regarding confidential information

9. Final Release: Mutual release of claims between parties

10. Governing Law: Specification of Nigerian law as governing law

11. Signature Block: Execution provisions and signature spaces for both parties

What sections are optional to include in a Termination Without Cause Contract?

1. Garden Leave: For senior positions where paid leave during notice period is required

2. Non-Competition: For roles where post-termination competition restrictions are necessary

3. References: Terms regarding the provision of employment references

4. Equity/Share Options: For employees with share schemes or equity arrangements

5. Transition Assistance: For roles requiring handover of duties or knowledge transfer

6. Benefits Continuation: Where certain benefits will continue post-termination

7. Legal Advice: Acknowledgment of right to seek independent legal advice

What schedules should be included in a Termination Without Cause Contract?

1. Schedule 1 - Payment Calculation: Detailed breakdown of final payment including salary, benefits, and severance

2. Schedule 2 - Company Property List: Itemized list of company property to be returned

3. Schedule 3 - Benefits Summary: Details of benefit entitlements and cut-off dates

4. Appendix A - Handover Plan: Optional detailed plan for transition of duties

5. Appendix B - Release Form: Standard form for final release of claims

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Nigeria

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking and Finance

Oil and Gas

Technology

Manufacturing

Retail

Healthcare

Education

Professional Services

Telecommunications

Construction

Agriculture

Mining

Transportation

Hospitality

Media and Entertainment

Relevant Teams

Human Resources

Legal

Finance

Operations

Administration

Compliance

Corporate Secretariat

Risk Management

Internal Audit

Talent Management

Relevant Roles

Chief Executive Officer

Managing Director

Department Manager

Senior Manager

Project Manager

Account Executive

Software Developer

Sales Representative

Administrative Assistant

Human Resources Officer

Financial Analyst

Marketing Coordinator

Operations Manager

Technical Specialist

Customer Service Representative

Research Analyst

Business Development Manager

Legal Counsel

Production Supervisor

Quality Control Inspector

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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