HR Glossary
Nigeria.
The definitive dictionary for Nigerian Human Resources. Demystifying PAYE, Pension, Labour Law, and Workplace terminology.
Absenteeism
The habitual non-presence of an employee at their job. It goes beyond legitimate leave or illness and can indicate poor morale.
Annual Leave
The statutory paid leave entitlement for employees in Nigeria, which is a minimum of 6 working days after 12 months of continuous service.
Appraisal
A regular review of an employee's job performance and contribution to a company. Also known as a performance review.
At-Will Employment
A term often used in US law but relevant conceptually: where an employer can terminate an employee for any reason (with notice) and vice versa.
Attrition
The reduction of a workforce by employees leaving and not being replaced. Often natural (retirement) or voluntary (resignation).
Background Check
The process of verifying a candidate's criminal record, education, employment history, and other past activities.
Benchmarking
Comparing a company's HR metrics (salary, turnover) against industry standards or competitors.
Benefits
Non-wage compensation provided to employees, such as health insurance (HMO), leave allowance, and pension.
Bonus
Additional pay given to employees as an incentive or reward for good performance.
Casual Worker
An employee engaged for a short period, often without the full benefits of permanent staff. Highly regulated in Nigeria.
CERPAC
Combined Expatriate Residence Permit and Aliens Card. Essential for foreigners working in Nigeria.
Compensation
The total cash and non-cash payments listed in an employment contract.
Compliance
Adhering to laws like the Labour Act, Pension Reform Act, and Tax laws in Nigeria.
Contract of Employment
A written agreement between employer and employee outlining terms, duties, and pay. Mandatory in Nigeria within 3 months of hire.
Culture
The shared values, beliefs, and behaviors that determine how a company's employees interact and handle business.
Disciplinary Procedure
A standardized process for dealing with employee misconduct, essential for avoiding wrongful termination suits.
Diversity
The practice of including people from a range of different social and ethnic backgrounds and of different genders.
Employee Engagement
The emotional commitment the employee has to the organization and its goals.
Employee Handbook
A manual containing a company's policies and procedures.
Expatriate Quota
Permission from the Ministry of Interior allowing a company to employ non-Nigerians.
Exit Interview
A meeting with a departing employee to understand their reasons for leaving.
FIRS
Federal Inland Revenue Service. The agency responsible for assessing and collecting federal taxes in Nigeria.
Fixed-Term Contract
An employment contract that ends on a specific date or upon completion of a specific task.
Fringe Benefits
Benefits supplementing an employee's salary, such as a company car or housing allowance.
Gratuity
A lump sum paid to an employee at the end of their employment, based on duration of service. Not mandatory unless in the contract.
Gross Salary
Total pay before deductions.
Guarantor
An individual who vouches for the character of a job applicant, common in Nigerian hiring.
HMO
Health Maintenance Organization. Provides health insurance coverage to employees.
HR Audit
A systematic review of current HR policies, procedures, and systems to identify needs for improvement.
Human Capital
The collective skills, knowledge, and intangible assets of individuals that can be used to create economic value.
Induction
The process of introducing a new employee to the company culture and their role.
Industrial Court
The National Industrial Court of Nigeria (NICN) handles labor and employment disputes.
ITF
Industrial Training Fund. A statutory 1% payroll contribution for skills development.
Job Description
A document describing the responsibilities and requirements of a specific job.
Job Evaluation
A systematic way of determining the value/worth of a job in relation to other jobs in an organization.
KPI
Key Performance Indicator. A measurable value that demonstrates how effectively a company is achieving key business objectives.
Labour Act
The primary legislation governing employment relations in Nigeria.
Leave Allowance
A sum paid to employees going on annual leave, typically 10% of annual basic salary in Nigeria.
LIRS
Lagos State Internal Revenue Service. Collects PAYE for employees resident in Lagos.
Maternity Leave
Statutory leave for female employees for childbirth, usually 12 weeks with at least 50% pay in Nigeria.
Minimum Wage
The lowest remuneration that employers can legally pay their workers in Nigeria.
Net Salary
The amount an employee takes home after all deductions (tax, pension, etc.).
NHF
National Housing Fund. A mandatory 2.5% contribution of basic salary for employees earning above minimum wage.
NSITF
Nigeria Social Insurance Trust Fund. Employer contribution for work injury compensation.
Onboarding
The mechanism through which new employees acquire the necessary knowledge and skills to become effective.
Offboarding
The process of managing an employee's departure from a company.
Outsourcing
Contracting a third-party organization (like Sigma) to handle specific business processes like HR or Payroll.
PAYE
Pay As You Earn. The income tax deducted at source from salaries.
Pension
A fund into which a sum is added during an employee's employment years to support them in retirement.
PFA
Pension Fund Administrator. A company licensed to manage pension funds in Nigeria.
PIP
Performance Improvement Plan. A document given to an underperforming employee suggesting specific improvements.
Probation
A trial period for new employees, typically 3-6 months, during which they can be terminated with shorter notice.
Quota
See Expatriate Quota.
Recruitment
The process of finding and hiring candidates for specific jobs.
Redundancy
The termination of employment because the job role is no longer needed.
Remittance
Sending money to authorities (e.g., taxes to LIRS, pension to PFAs).
Resignation
The voluntary act of an employee ending their employment.
Retention
The ability of an organization to keep its employees.
Salary Structure
The hierarchy of job grades and pay ranges within an organization.
Severance
Pay given to an employee upon termination of employment.
Soft Skills
Non-technical skills like communication, leadership, and empathy.
STR Visa
Subject to Regularization Visa. Issued to expatriates invited to work in Nigeria.
Succession Planning
Identifying and developing new leaders to replace old ones when they leave or retire.
Talent Acquisition
The strategic process of identifying and acquiring skilled workers.
Termination
The end of an employee's work with a company.
TIN
Tax Identification Number. Unique number for tax purposes.
TWP
Temporary Work Permit. For expatriates coming for short-term work (installation, repairs).
Union
An organization of workers formed to protect their rights and interests.
Variable Pay
Employee compensation that changes based on performance (e.g., commissions).
Visa
An endorsement on a passport indicating that the holder is allowed to enter a country.
Workers' Compensation
Insurance providing wage replacement and medical benefits to employees injured at work (see NSITF).
Workforce Planning
The process of analyzing current and future workforce needs.
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