Insights

Allowances

Legal Nuggets

  1. These are usually mutually agreed upon between the employer and employee, and/or subject to the applicable Collective Agreement, if any. In relation to transportation allowance, the Labour Act provides that a worker required to travel sixteen kilometres or more from his normal place of work to another worksite is entitled to free transport or an allowance in lieu thereof.
  2. With regards to transfer allowance (whether short term transfer; permanent transfer; or transfer outside Nigeria), and bonuses (such as annual productivity bonus; drivers no accident bonus), these are usually agreed upon between the employer and the employee and/or covered by the provisions of the relevant Collective Agreement in place in the particular industry.