What To Do Before You Consult a Lawyer on Unpaid Salaries or Benefits
Keywords: unpaid salaries in Nigeria, withheld benefits, leave allowance, pension, gratuity, employment lawyer Nigeria, NICN, labour complaint
Introduction: Why Preparation Matters
Unpaid salaries and withheld benefits are common workplace challenges in Nigeria. They arise for many reasons, including payroll delays, cash flow problems, managerial negligence, errors in HR systems, or deliberate refusal to pay. Before you consult a lawyer, thorough preparation will save costs and time, and will often unlock faster resolutions through internal engagement, mediation, or structured demand letters. A well prepared employee presents a clear narrative backed by evidence. This improves negotiation outcomes and reduces the number of lawyer hours required.
- Create a clean timeline of employment and payments due.
- Collect bank statements and payslips that show gaps or shortfalls.
- Engage HR formally in writing and keep all responses.
- Calculate the exact arrears due to the last naira and kobo.
Steps You Can Take Before Seeing a Lawyer
1. Review your contract and HR policies
Locate your offer letter, employment contract, and any addenda. Confirm base salary, benefits, allowances, bonuses, and payment cycles. Check clauses on late payment, deductions, performance conditions for bonuses, grievance procedures, and dispute resolution. If you are a senior staff member not governed by the Labour Act, your contract terms will be even more significant.
2. Document internal engagement
Raise the issue politely with HR or your line manager in writing. Escalate respectfully to finance or management if there is no response. Use email or other written channels that can be saved as evidence. Avoid emotional language. Request a specific response date and keep read receipts where possible.
3. Send a formal demand for outstanding sums
Prepare a concise demand that states the exact amounts, dates, and pay periods owed. Attach a schedule of arrears with calculations. Give a reasonable deadline and state that you are willing to resolve the issue amicably, including mediation if appropriate.
- Identify yourself, role, and dates of employment.
- State salary, benefits, and agreed payment cycle.
- List arrears by period with totals.
- Request payment by a date certain. Offer to meet or mediate.
4. Consider administrative and ADR options
For many disputes, mediation through the Ministry of Labour or a Multi Door Courthouse can be faster and cheaper than immediate litigation. If you belong to a trade union or your workplace has a collective bargaining agreement, leverage that framework for pressure and structured negotiation.
5. Safeguard your position
If you remain employed, continue to act professionally. Where possible, keep working to avoid claims of abandonment. If you plan to resign, follow contractual notice procedures and return company property. Keep copies of everything you submit or receive.
Evidence and Documents to Gather
- Employment contract or offer letter and any amendments.
- Payslips or internal payroll screenshots.
- Bank statements showing salary credits and gaps.
- Correspondence with HR, finance, and management acknowledging delays or shortfalls.
- Employee handbook and HR policy documents.
- Records of leave, bonuses, pensions, health insurance, and allowances due.
- Any internal grievances, tickets, or case numbers.
Building your arrears schedule
Create a simple table that lists each month or pay period, amount due, amount received, and shortfall. Include allowances or benefits not paid, such as leave allowance, transport allowance, pension remittances, or medical cover that lapsed due to non payment. Total the arrears to date and keep it updated.
Common Mistakes Clients Make
- Relying on verbal promises with no written confirmation.
- Posting accusations online that may be defamatory or breach confidentiality.
- Resigning in anger without following notice and handover processes.
- Waiting too long to escalate or to seek advice, which can complicate recovery.
- Mixing unrelated disputes into one demand, which muddies the case theory.
Common Misconceptions
- If I resign I cannot claim arrears. Incorrect. Earned entitlements remain due after resignation.
- Partial payments mean I cannot claim the rest. Incorrect. You can claim every outstanding balance.
- I must sue immediately. Incorrect. Many matters resolve through HR engagement and mediation.
- Only salary counts. Incorrect. Benefits, allowances, leave pay, pension remittances, and gratuity may be recoverable depending on terms and law.
Preparing for Your Consultation
Your lawyer needs clarity and evidence. Arrive with a neat bundle and a summary. This reduces billable time spent sorting disorganized data and lets your lawyer focus on strategy.
- Contract, payslips, bank statements, HR emails, policy handbook.
- Arrears schedule and calculations with totals.
- Chronological timeline with key dates and decisions.
- What avenues are best: demand, mediation, or suit at NICN.
- What remedies are available for salary and benefits.
- How long similar cases take and likely costs.
- Risks if I remain employed versus resigning now.
Practical Insights
- The National Industrial Court of Nigeria handles employment disputes and is structured for faster employment justice compared to regular High Courts.
- The Labour Act covers many junior staff categories. Senior staff and managerial employees often rely primarily on their contracts and general contract law principles.
- Collective agreements and union mechanisms can increase pressure and open settlement rooms.
- Where an employer faces insolvency, recovery may depend on available assets and the ranking of employee claims. Early action matters.
- Mediation at Multi Door Courthouses can preserve relationships and deliver quicker pay plans or structured settlements.
Frequently Asked Questions
1. Can I claim unpaid salaries after resignation
Yes. Resignation does not waive earned entitlements. You can pursue arrears, accrued leave pay, and other contractual benefits already due.
2. Can I include unpaid benefits and allowances
Yes. Include leave allowance, transport allowance, bonuses as applicable, pensions not remitted, and any contractual benefits that were due but unpaid.
3. How far back can I claim
Limitation periods for contract claims are commonly up to six years in many contexts. Specific timelines may vary. Early action is recommended so that you do not get close to limitation bars.
4. What if the company is not paying anyone
Consider collective action through staff representatives, union mechanisms, or mediation. Your lawyer can explore insolvency and asset tracing strategies where appropriate.
5. Can my employer retaliate if I demand payment
Retaliation is unlawful. Proper documentation, prudent engagement, and timely legal advice help you manage risk and respond effectively to adverse actions.
Final Thoughts
Salary and benefits disputes are stressful, but a calm, evidence led plan changes the outcome. Build your arrears schedule, keep communications civil, and exhaust practical settlement paths where suitable. When you do brief a lawyer, your preparation will translate into sharper strategy, better timelines, and improved prospects of recovery.
